The life and times of an Arizona Investor

This will be my personal journal to document my failures and successes during my real estate experiences in Arizona. All stories, thoughts, and successes will be documented..

Tuesday, January 11, 2005

Finding motivated sellers via foreclosing leads..

Arizona is both mortgage and deed of trust state, but mostly foreclosers goes through a trustee sale. Its quick and fast. Basically, when the mortage company files a "notice of sale", the seller has 90 days before the trustee sale occurs.

One of my favorite strategies is to find pre-forecloser sellers and try to make a deal before the trustee sale. Honestly, a lot of times its a win/win situation. Some sellers have either given up or have no way of keeping the property and I we can come in and save their credit while giving them some move out money. I can buy the house with built in equity.

Is this easy?? No way.. Its a lot of work. In addition, the sellers have been usually beaten down so hard by the time I get to them that its hard to get them focused on solving their problems..

I've found success in this niche by getting the leads before most people. The last house I bought I was getting business cards months after buying it!! I've had no luck with buying foreclosure leads. Usually they are old and useless by the time you get to them.

Once you get the lead you can CALL, WRITE, and DOOR KNOCK. All takes effort. the best results have been door knocking.

Calling is second best in my opinion. I created a new script that is working very well for me. Its important to me to have a script that I can memorize and use over and over...

"Mr. Seller, my name is Brian. and I was at the court house the other day and realized that you have a pending problem with your property. (Letting them know that understand their situation) I specialize in helping folks like you, solve their problems (letting them know what I do), I was wondering, did you know that the banks have filed a "Notice of Sale" "

Since I get the notice the same week that its published, I usually know before they do. They say, "No! what is that?"

I go into explaining what it is and the consquence of what will happen if nothing is done. This is the utlimate ice breaker and allows me to ask if they are interested in talking about solutions.

Another question you want to ask is, " Seller, are you trying to save the house or do you want to been done with it?

After this critical question, you will know if you can work a deal...

I called a seller last week and the conversation flowed very well. He said he is currently talking to the lender for a forbearance agreement (payment plan to get him caught up). Obviously he's interested in saving the house. And thats fine, I don't want to push him. He found an option and wanted to work through it. UPDATE: I called him last night and he told me that he indeed found a solution with the bank. I told him to make sure to get it in writing and if the situation changes to call me. He told me he had my number and will call me if things change.

I won't be surprised if he calls me back in a month..

Good investing!
|| Bginvestor, 1:50 PM


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