What to do with Pre-foreclosure/NOD info

[wilcox59]

Hello,

This is my first post here. Looks like a great site with lots of info. I just started receiving a Notice of Default list. I don't know much about this subject so I was wondering if anyone had any ideas on how to go after these deals. I'm interested in learning the best way to make contact with these people and what are the possibilities if you are able to work a deal on one of these properties.
Also, do you think that this is a list that every other investor in the city is receiving and do these people have people calling them all day long?
Thanks for any ideas, info, suggestions :cool:

[Just Information]

I will be happy to give you some help in this are, but I must ask a question first.

What service provided you a preforeclosure list?

What state are you in also?

Many services provided what they call a preforeclosure list but it's just a list of lender owned props.

[wilcox59]

I am getting the lists mailed to me from a title company. The info looks pretty legit. It has the address, owners name, purchase price, and some default info. I double checked some of the info with the county assessor's website. The information is for properties in Nevada.

[ChrisGA]

What I do is I go to the door of the property and knock to get in and start help the owners. I take over the existing mortgages and they move out/

I like the personal contact with the people/

How are you wanting to contact them? you can use several ways including direct mail, phone, door knocking.

I take title into a Land Trust.

If you could be more specific with your question/post this would help us out more./

Chris
Golden Touch Properties

[wilcox59]

Sorry my questions are so general but I just don't really have any experience working with pre-foreclosures. I don't really have a preference as to how I contact people, I am wondering how others do it (as ChrisGA mentioned you knock on their door, I was wondering if people do that or does a letter work best). I feel comfortable approaching people whether its a letter, over the phone or by knocking on their door if I know what I'm talking about.

I guess my problem right now is I'm not sure what to say to someone if I were to contact them. Any coaching or suggestions on where to learn more about this would be appreciated. I just need to learn everything from starting with a name and address to the close of the deal.

I would be interested in working with someone who has experience and splitting deals with them also.

Thanks for any input, I do appreciate it :)

[Dan Auito]

Your in luck Wilcox, I just loaded this free e book on preforeclosures in the free e books section! Picking up preforeclosures in good neighborhoods By Bill Gatton http://real-estatedeals.com/workshop.pdf Who luvs ya :SM081:

[wilcox59]

Thanks, I'll check it out :praise:

Wilcox, I just finished up updating our links list in the "Bring The World Wide Web Home" topics block but will post up some of those resources here for your quick reference. Good Luck :thumbsup:

Foreclosure searches & Resources
www.mrpreforeclosure.com/forum/forum_topics.asp?FID=2&PN=1 (pre-foreclosure) Jeff
www.foreclosureforum.com/mb/index.html (another foreclosure forum)
www.reotalk.com (foreclosure experts) (Steve)
www.fastcashinrealestateforeclosures.com/forum (learn about foreclosure)
www.foreclosures.com (foreclosure resources)
www.all-foreclosure.com (can you guess)
www.foreclosurefreesearch.com “
www.hud.gov “
www.homesteps.com “
www.fanniemae.com “
www.noticeofdefaults.com (find it first)
www.buybankhomes.com “
www.reonationwide.com “
www.propertydisposal.gsa.gov/property “
www.iasreo.com/search/home4sale.asp (r.e.o. search)
www.treas.gov/auctions/customs (auctions)
www.policeauctions.com (auctions)
www.hud.gov/homes/homesforsale.cfm (repossession agencies)
www.fnams.com (asset management)
www.ocwen.com (ocwen asset management)
www.1st-bank-foreclosures.com/search/search.php?1foreclosed/homes (20 more)
www.debtbug.com (stop foreclosure)

[Just Information]

Dealing with pre-Foreclosures will require a lot of good people skills as you will be dealing with folks facing one of the most difficult times one can face in their life.

You have to be kind; understanding a good negotiator and most importantly, you must build trust with your customer. You have to show them that your offer is a win - win.

Your basic process in this is to:

Locate loans in default (you have this part)

Now you need to evaluate if the property would be a good candidate to spend your time on by knowing it's value, what liens are on the property and how fast you can turn a profit on this one deal.

Now we have to know if our customer is motivated enough to justify time spent.

Are they willing to move?

Are they willing to do what it takes to make this problem go away?

Key questions to ask. (Evaluate the property owner's needs)

If you do not sell your house what do you plan to do?

If you do sell your house what do you, plan to do?

You have to be able to evaluate and narrow your leads and only pursue the strong possibilities.

The inspection process is another essential factor as the cost my prohibit your ability to do the deal.

You will find if done correctly this to be one of the most rewarding forms of investing but you must make sure that you have ample time to research the deal as with most pre foreclosures you will only have a window of a few weeks.

You will face difficulty in contacting them, you will have a lot of competition, the research is vary cumbersome, in most cases you will need to negotiate with not only the homeowner but the lien holders as well.

So you need to determine market value, fix-up costs, sales price and profits, negotiating with the owner and the lender, close on the property, repair and resell it as fast as possible and just repeat the process over and over.

[Dan Auito]

Boom! (So you need to determine market value, fix-up costs, sales price and profits, negotiating with the owner and the lender, close on the property, repair and resell it as fast as possible and just repeat the process over and over.)

And so it was written: :praise:

[ChrisGA]

With preforeclosures the best thing i like is I can get in without qualifying for the mortgage because I take it subject 2. The down side is possible loan being called due, and you must make your seller aware of this and tellthem up front.

Then for your exit you have several choices....5k down anything over 75k appraisal. and monthly payments to you for monthly spread. On a lease option contract with YOUR buyer.

Or you can sell on a Agreement for Deed, land contract, depends on the state. but these are the same thing.
terms to you would be 10% down payment and monthly spread on the payments.

Now if the back payments owed to catch up 1st is less than 5k with all fees from lender, I use option 1
but if the payment a fees are above the 5k then I use option 2.

Turn around time for this method with myself on average 2weeks from the time the ad hits.

With both exits closing or lease option can be done usually within 2-3 days....Lease Options are done once the contracts are signed with the tenant buyer.

I use a attorney for my owner financing closings and each exit the tenant or New owner pays for all closing fees with my attorney and title insurance.