Direct Mail Marketing to Mortgage Lates

[Sam Byrd]

Hello BP community!  Fairly new here but started a few weeks ago with a very small direct mail campaign to folks who had received a Notice of Trustee's Sale (Texas).  Two relatively small counties and entry in the cycle mid-month so my total list was only about 60 total.  From that I got 2 responses, met with 1 the same day and the other 2 days after her initial call.  Unfortunately the first thought it was a gift from God and over the next few days felt as if she didn't need to put any money into the deal to save herself from foreclosure.  An attorney no less, who grasped the concept but then almost felt entitled.  She was in a seller finance deal and the note holder wouldn't allow her to get current...he wanted out of the landlord role and wasn't very negotiable on selling the deal.  He'll get it back at auction, but probably for the best.

The second one was just too far gone for any sort of a subject to deal.  What she told me was about $20k shy of what her reinstatement amount was.  She was 1,200+ days past due.  So...no go on that deal.

I felt pretty good about the response rate on the direct mail so now I'm hitting up mortgage late (60, 90 & 120 days). Got a list of around 540, filtered out anyone with LTV > 100% and have my minions (kids) helping me prep the mail for around 450 pieces. Yes, I'm paying them. :-) Cost was about $300 - $350 all in doing it myself, mainly postage. Just printed the letters at home.

So, I'm open to suggestions, ideas and critique as you feel appropriate.  I'm hoping to see about a 5% - 7% response rate and will track which days late seem most responsive.  I'm still mailing to Notice of Trustee's Sale postings as they become public.  I do bandit signs as well and have had a few calls from them.  Nothing very promising...typically deals in poorly maintained areas, with a higher crime rate, but I look at them all.

In the less desirable areas, I'm trying to work owner financing, secure the note and wholesale it.  Some sellers on lower value properties seem receptive to these proposals and many haven't even considered it before.  Maybe nobody has suggested it.

One thing I've found is that if you keep your mouth closed, sellers just start blabbing.  No amount of Pepto will cure their case of diarreah of the mouth!  It's great for me because it gives me crucial insight into their wants / needs and their initial position of power just continues to weaken the more they talk.

Ok, so again...open to suggestion & ideas.  I'm also open to connecting with anyone interested in discussing joint ventures.  Thanks in advance folks!