Help me Market to Foreclosing Lenders - Want to Buy Their Loans

[Leonard L.]

I am considering sending my first batch of letters to lenders who have filed a Notice of Default in my farm area.   The idea is to buy the defaulted loan at a discount where there is equity in the property.    My question is -- has anyone had success in doing this, and if so, would you be willing to share some wisdom?  I will only target the smaller lenders, private parties, thrifts, etc.  

I was thinking I would use a more professional letterhead than my yellow letters, use one of my company names, and pitch myself as a loan buyer who can pay all cash fast and can take over the burden of negotiating with borrower and/or foreclosing, etc.  But not sure what my "hook" should be, other than convenience and quick cash.

Any tips appreciated.

[Ron S.]

As a lender, I can tell you that ever single letter, without exception, gets filed in the round filing cabinet. Every phone call that I receive unsolicited gets routed to voicemail and then deleted. Not because i'm lazy or rude but because i'm not sleeping with you or those like you. I'd have to be sleeping with you or, you'd have to have pictures of me sleeping with someone i shouldn't be sleeping with to liquidate notes that will generate recovery against my losses upon foreclosure. Maybe more tactfully stated, why would I as a lender want to get rid of a group of loans that (as you state), have equity in the property? If you know they have equity, wouldn't it be fair to say that I know they have equity?

The days of lenders trying to get non performing loans off of their books are gone. There is no incentive to discount the notes and sell in bulk any longer just to shore up the books and make the institution look stronger. Maybe there are a couple of mom and pop lenders that are in over their heads and/or can't cash flow with their investments but for actual banks, I don't see this as a viable marketing strategy.

Now...if you want to buy my notes for non performing loans with no equity, leave me your number.