All Forum Posts by: Roy Schauer

Correct. It's called a NOD (Notice of Default) in our neck of the woods. If your interested in the property, especially to live in personally, make contact. Don't try to come across as an investor. Just as a person looking to get the most house for your money. Do you know when the auction date is scheduled for?

Also do you have your bank preapproval in place? This helps show your seriousness. Just remember, they may be highly sensitive and possible angry. It's not personal, so don't make it personal. The goal for you is to build the contact. Also wouldn't hurt to drive the neighborhood. See if any other houses are for sale, look at their price, etc. get a feel for the neighborhood before you get locked into the house and find something out later that you wish you had just slowed down and looked at before hand. Hope this helps!

also, is there equity? And check to see if the current mortgage is assumable.

yes. Are you looking to buy and hold, for you own use or to create cash flow from flipping it?

nice thing about junior liens, be they 2nd mortgages or IRS or credit card, is that you can negotiate. Especially if the property is scheduled for auction and they haven't been paid in awhile. I've got them to discount from 20-40 cents on the dollar. Sometimes that's enough to create some equity.

@Jennifer A. I can't speak for your area but here locally there are a few factors that figure into it. Some people do take the option to sell, however most of the properties we've seen and dealt with make it to the auction sale due to a couple specific actions, or inactions.

First, most homeowners believe they can stop the foreclosure and fix the problem. This could be because they think it won't be that hard to get caught up, believe the bank will work with them to refinance etc, or are currently doing some sort of program that is a loan modification. Remember, I only know the actions and policies of our local financial institutes. However, even if they are in a loan modification process, until it's approved, the bank expects the payments to be current and will not typically stop the foreclosure process until the loan has been completely reinstated. The most common form of a loan modification by the largest bank locally results in the past due amount being rolled onto the back end of the loan, and payments will be expected to be paid as if normal from that point on. This typically doesn't solve the problem and only delays it. An actual loan modification, meaning decrease of interest or balance or restructuring of the terms happens very infrequently. I've recently talked with 3 different homeowners who have been in negotiations with this bank attempting to find a resolution for a duration of no less than 6 months and one has been dealing with them for a year and a half. They constantly say they need more info for the underwriters or to much time has passed and require updated paperwork of w-2's and other financials. They stall and give the homeowner the "we are working on it" excuse. Most get so frustrated they just throw up their hands.

Secondly, once they get so far into the foreclosure process, most realtors don't feel comfortable attempting to help sell their home because they can't guarantee the closing before the auction date due to the restrictive lending and that the bank won't typically stop the foreclosure even if there is an offer on the table unless the past due amount is completely caught up and the loan reinstated. In our area, a home loan that is 4-5 months past due and in foreclosure will cost about $10k to reinstate. As you can see, once they reach a certain stage of the foreclosure process, it's almost impossible for them to stop it. Normally. That's where investors come in. We can do things that most banks and Realtors aren't able,or won't, do.

Lastly, some people just become ashamed, depressed, stressed out and do the "Ostrich Syndrome" which is to say they ignore phone calls, knocks on the door, and mail contact, bury their head in the "sand" and hope it all goes away until it's too late to do anything.

Hope this gives some insight. If you ever get a chance to talk to someone going through a foreclosure don't be afraid to just talk to them, ask why they haven't sold. After a while, you'll start to see a pattern.

Hi Jimmie! Was good seeing you at the REI-AK meetup.

@Shariyf Grevious your probably right on that. I don't particular like direct mail, I'm more of a direct contact person. That's why I'll tape (btw, I use neon orange or green duct tape because those are similar to our business colors and catch the eye) the envelope to their door, or garage if that seems to be the main access point. Don't put it in the mail box, then you get into federal regulations that are better left alone.

I'm toying with the idea of a rechargeable Visa card with an initial $25 balance and a note that says something like "when your ready for more, give us a call,". Trying to find a company that will put my company logo on it. That way you make it into their bill folds and their more likely to keep it there because they will plan on contacting you at some time in the future, or give the card to someone else as a referral for your services. Honestly, after something makes it into your wallet, how often do you go through and clean it out? In the mean time they are constantly seeing your name and logo, it's like getting multiple touches but they are doing the work for you.

Hi Gabe,

Every market is different. Keep trying. And thank you for posting your results. I always like hearing what works, or doesn't seem to be working, for others.

Reverse engineer your marketing. Who's your target market? Where is my target market and what do they do? How can I market in order to place myself in front of my target market by combining the answers from the first couple of questions? I've found the more out of the box you think, the more likely they will notice. Remember, people are marketed to daily by professionals with big money to throw at the problem and have become pretty good at ignoring advertising. It just fades into the background of the constant visual assault everyone has grown use to. What is going to make you stand out from the rest and catch their attention enough to make them want to talk to you?

Hello Nate & Sharon,

Good to see you reaching out and making contacts! Just had a possible opportunity come to us that we would never have heard about if we hadn't been getting out there and networking.

@Alexander Lommel you met Nate at the last meeting in Eagle River. He sat beside me at the end of the table.

@Kassandra T. I'm looking forward to everyone meeting with each other. Alex and Nate are newer to the groups. Nate was going to make it to the last meeting but had to cancel due to the icy rain we had.

Hi Darren,

Boilers here are typically gas heated. Your correct in the pump won't circulate without electricity, therefore multiple level houses will have cold portions depending on which level the boiler is on. Here, we typically run a 50/50 ratio of glycol/water in the lines. This helps with the lines freezing and transference of heat. While it isn't circulating per se, the heat does travel through the lines even without circulation being applied. Granted it won't keep things at a balmy 72 degrees, but where your winters typically average between 20 to -25, a mid 50's internal home temperature sure makes a difference. I understand that might not be the same everywhere.

I do agree that radiant heat has proven to be superior. However, we haven't had a lot of new building in the past several years and the cost of renovating an old home to apply it can be prohibitive. Stephen has a good point. Do what is cost effective for you and roll the savings into the next deal, unless your planning on living there a long time the investment would be better.