Agent

Rescue defaulting borrower at pre-foreclosure, save a bundle

Part 1: Profit opportunities during foreclosure
Published on Aug 24, 2006

(This is Part 1 of a three-part series. Read Part 2 and Part 3.) PROFIT OPPORTUNITY #1 -- BUY DIRECT FROM THE DEFAULTING BORROWER DURING THE PRE-FORECLOSURE REINSTATEMENT PERIOD. Finding the defaulting borrower can be a major challenge because many don't live in the property, which is in foreclosure. I used to send letters to these folks, but the response rate was very low. Then I learned why. One day I visited a house where the owner had phoned me about my offer to loan him funds to cure the default. As I sat down on the sofa and looked at his coffee table full of unopened letters, mostly from lenders wanting to refinance, or from bankruptcy attorneys, he explained he was too depressed to open them. That's why I switched to sending postcards instead of sealed letters. For just 24 cents your postcard is almost sure to be read. But DON'T say, "Sorry to hear you are in foreclosure. If you want to sell your home to avoid losing it, give me a call." A postcard like that is sure to get...

Comments