3 Things To Remember When Talking To A Foreclosure Prospect

Foreclosures are going to be even more prominent in the near future. While the government will be doing another round of stimulus, that won’t last forever so the canary in the coal mine will soon stop singing. When you’re meeting with prospects that need to sell their distressed property due to foreclosure, remembering these three things will help you stay ahead of the game and grab those deals before others can.

Understand Foreclosure Types

There are two types of foreclosure, which are Judicial & Non-Judicial. While there are similarities, both have their own unique aspects which will help you collect more accurate information about your prospect's situation. Non Judicial means that the foreclosure doesn’t have to go through the court system prior to being sold, while Judicial does. Each state uses a different one or a combination of the two. Here in North Carolina, they use both types depending on the Deed of Trust that's attached to the property. Understanding these are key, so make it a point to learn about them before sitting down with your prospect.

Console Yet Be Firm

Very few times have I sat down with someone trying to sell a distressed property and found out they’re happy about the situation. If they are, I see that as a big red flag and may end up passing not he deal. While it’s important to be understanding and console them about their situation, you have to be firm as well. Give them the straight facts. Their situation is bad, but console them by naming those challenges directly and immediately telling them how your services can help them. Don’t beat around the bush. They deserve to know the hard truth and how you can make it right.

Ask Questions

Sitting down with a client and talking about yourself the entire time is a sure-fire way to lose a deal. All of the greats say it and I’m repeating it. Get them talking. And the best way to do that is through questions. With every bit of information, they give you, ask yourself “why is it like that?” “Why did that happen?” and reframe the question so you can ask your client. 

Another great way to keep the conversation moving is to repeat what they just said in a caring voice, but in the form of a question. If they say, “It’s been really tough on my family” you’ll repeat, “So, it’s been really tough on your family?” The key to using that tactic is to SHUT UP after you ask the question. If you do nothing else, read this tip again and put it into action.

While there’s not a perfect way to do things, using these three steps the next time you’re talking with a prospect who needs to sell their distressed property fast will give you a big advantage. Asking the questions will also help you to stay confident, even if you’re new and don’t have a full understanding of the interview process. Happy investing!