Response to "Why do you need to know that?" or "What difference does it make?"

[Jennifer Alcide]

Hello,

I'm a new investor who is targeting absentee owners for wholesaling. When I receive a phone call, and I begin to qualify them, one of the questions I ask is "is there a mortgage on the house?" The response usually is "Why do you need to know that?" or "What difference does it make?"

I don't really have a set answer for this. I know in my mind I am trying to see roughly how much equity is in the house, but should I disclose that to them? I

What is a good response to this question? Is this question even a relevant question to ask?

Thanks in advance!

All the best,
Jennifer

[Dawn Anastasi]

There are all sorts of reasons to ask that question:

1. Determining if the house is upside down (mortgage more than the value of the home).

2. Determining if there is just one or more than one mortgage on the house, which may put the liens greater than the value of the home.

3. Would there need to be a mortgage company involved during closing in order to provide a pay-off amount? Or would this be a quick cash closing to the seller?