creative ways to get in touch with preforeclosures early

[Michael Johnson]

hey im looking for everyone's favorite. way to contact homeowners before short sales sherrifs sales etc.. Even if its only getting a video in front of their face.. answer however youd like but if you can do me a favor, talk amongst yourselves to keep this thread alive. I am going to catch a flight. ill respond when i land.. 12pm ESTish... Thanks in advance.

[Account Closed]

I don't think pre-foreclosures is your best prospect for making money in this business - in Maryland - there are laws about getting involved with this type of deal.

• The problem is - if they are not paying the bank - who else are they not paying and how many liens are on the property?
• It is an emotional transaction - these folks are going to be put out of their home - where are they going - what's their problem -unemployment - sickness - drug addition - death in family ----incarceration?
• They are going to have a "deficiency judgment" against them if it does not sell for the amount of the lien.
• Their credit is going to be buggered up - they are going to have problems with buying anything that needs a credit rating.
• They are not in a good place - the bank - lawyers and others want their money and they are being harassed (good reason to not answer the phone).
• Now ---- here you come - you want to control some equity - you want to make some money - you may want to flip this property!
• A problem you may experience is that you are setting yourself up for a potential law suit - did you take unfair advantage of these folks - were you honest in your disclosures - did you make too much money - will you have to go to court to explain to the judge what you did and why?

So the above is just some of my observation of foreclosures ---- you would always be better being arm's length with people who are about to lose their home, that is have an agent represent you. If you get an accepted contract - make sure you do a lien/judgment and title search - this will tell you what you are get and what trouble is in the "chain of title".

Here are some ideas -

• Investigate - try to look at the property - inspect - chat with the sellers - get comps (but don't make an offer) what is their balance - who else do they owe?
• Have your financing set up, a credit is best
• Attend the auction sale at the court house steps - bid on the property up to the amount you feel comfortable with.  Now you have the property - no emotional attachments - no outstanding liens - you get the property free and clear of judgment liens and you are not going to get sued!
• If at the auction - the trustee rejects your high bid - go immediately to the trustee with a written cash offer. Trustee must submit it to the lender - who knows - you might get lucky.

Foreclosures can be profitable - but you are safer to buy at the auction - if you don't have the cash or a credit line - you should put together a joint ventures with friends or relatives - let them know what you are doing and how they can profit. Get them to give you a financial commitment (don't take the cash now - only when you have a great deal)

Make it a habit to attend these foreclosure auctions - even if you are not prepared to buy - you will get to know the players - who is there - what do they look for, how do they bid. Know your competition and how they react to you.

You too can become a PLAYER - but you've got to PLAY the game and know who your nemesis are.

Wishing you good luck with this real estate game - play to win and be always be vigilant for equity or cash opportunities.

ONLY MY OPINION ----

Charlie