Tax Delinquent Cold Calling

[Kendra Holmes]

Could someone share a great “script” or guideline to follow when cold calling tax delinquent owners? Are these owners more likely to get offended? Should I send a letter first and then call? Please share your experiences. Thank you!

[Guy S.]

Originally posted by @Kendra Holmes:

Could someone share a great “script” or guideline to follow when cold calling tax delinquent owners? Are these owners more likely to get offended? Should I send a letter first and then call? Please share your experiences. Thank you!

First thing you need when contacting distressed owners  (tax liens, pre-foreclosures) is the right mindset. That mindset should state that you are there to HELP them, and not take advantage. It means that you have to internalize that most of then want to KEEP the house, and not lose it or accept a lowball offer. If the owner tells you they are working on it, take a step back ask politely for their permission to follow up in a couple of weeks in case they can't pull it themselves. If you are convinced you are there to help those who want your help, everything becomes easier. 

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with regards to a script, there are no magic bullets. you could go with one of two strategies: 

1. Ignoring the tax lien altogether. It goes like this:

"Hello, my name is ________, I'm calling with regards to your property on Main St. I'm a local real estate investor looking to buy a property in your neighborhood, and wanted to know if you think about selling soon?"

The big advantage with this one is that if the owner is indeed in need of selling, he might bring up the tax lien himself. it's easier to the ear and less invasive. 

2. Present yourself as an expert with tax liens:

"Hello, my name is ________, local real estate investor that specializes in tax delinquencies. I noticed some difficulties with the property on Main St, I would be glad to help with the situation if necessary" 

Don't mention a "tax lien", "your property", "buy your house' etc. You make the first step, and leave them some room to feel comfortable and safe, to open up only if they choose to. If they choose to open up, go with your regular script. 

***

It is a good idea though, to remind them that time is at the essence, as a lot of owners out of desperation choose to avoid the problem instead of taking care of it and lose their home. you could say something like:

"Ok Mr __________, it's also important to remember that time is a critical factor here, as the municipality already put a tax lien on the property, and one it starts the foreclosure process, it will be very hard to stop. This issue must be treated with great responsibility"

The most important thing to remember here is to give the homeowner the SPACE to open up, and trying to force it down their throat.