How can I help people going through foreclosures?

[Daniel Mendez]

Good morning BP members,

I am trying to understand a little more about how i can help people that are going through foreclosure.

My understanding is that the big issue is that they can't keep up with their payments. Is that the only issue that they are going through? Is it common to come across people that have high equity on a house but still going through foreclosure?

Thanks in advance!

[Lydia R.]

@Daniel Mendez The best way you can help people in foreclosure is to understand the foreclosure process from the first missed payment to the auction date. Most people going through foreclosure dont understand what is going on. They get overwhelmed and under informed. In order to gain trust you have to be a subject matter expert.

Once you are an expert, you have to understand that most people dont want to sell. Preforeclosures are always talked about by "gurus" as motivated sellers but if that was the case they would all have their properties listed on MLS. Most people in foreclosure want to keep their homes. Especially those with lots of equity. You have to be prepared to get a lot of pushback.

When I was wholesaling foreclosures I would always leave the homeowner with a written contract for them to keep as their plan B. I said listen, here are some options for you to keep your home (loan modification, bankruptcy/debt restructuring, forbearance, state/local programs for distressed homeowners) but if they dont work out here is a plan B in case you need it. If your plan A doesnt work then you wont lose the equity you have in your home, but if your plan A works then you can rip this contract up. This does a few things, it shows you are genuinely trying to help them which builds trust (there are a lot of foreclosure scams out there), it gives them a plan B which psychologically is going to make them less anxious about plan A not working and it keeps them from talking to other investors since they already have a contract with you.

There are a lot of people who chase foreclosure leads but very few who do it compassionately and in a selfless manner.