Initial contact with a foreclosed borrower

[Daniel Elbe]

 I'm new to investing in Colorado (I live in the Springs) and was wondering if I could get some advice on initial interaction with a foreclosed borrower? There is a property in downtown Springs set to go to public auction within a couple weeks.  My team and I are ready to move on the home, the numbers look great. With the auction coming up soon, I want to move on the house quickly, but don't want to overwhelm the borrower, and blow the deal.

Based on experience, what is the best way to get in contact and build rapport with a borrower who is foreclosing, especially on a very short timeline?

Just knock on the door?  Leave a letter?  Cold call (if I can find a phone number?)

I honestly believe that we will benefit the borrower by buying the home from them.  If make the cure the mortgage, and give the borrowers a few $grand cash, they make out better than having a foreclosure permanently on their record and losing the house to auction.  What is the best way to communicate that to someone who is going to lose their home in the next couple weeks?

Thanks all for your time,

Dan

[Tammy Obregon]

Thats a tricky one. With the sale a few weeks away the borrower would need to get bank approval for the sale of the property. I can tell you most lenders will not postpone or cancel a sale date as we have experienced alot of borrowers use this as a stall tactic to stay in the home longer. You may be better off to bid on the place at the county steps, and if you are awarded the bid you may still have to offer cash for the borrower to vacate the home.  I'm talking from experience.