Earlier, I wrote a post on the Logan Utah foreclosure process, and in that post I discussed negotiating with a home owner on purchasing their home while it’s in pre-foreclosure. In this post, I wanted to discuss this tactic in more detail.
Contacting The Homeowner When Purchasing A Pre-Foreclosure
A home is in pre-foreclosure when the bank submits a notice of default. These notices are public record and can be found at the local county offices depending on where you live. Here in Logan, you can find these defaults by checking out the legal section in the Herald Journal.
Once you know the property is headed into foreclosure, I would recommend driving by to view it before contacting the homeowner. If the home meets your criteria for buying contact the trustee or the attorney to confirm the property is still in the pre-foreclosure process.
Many times a homeowner will get a notice of default and find a way to reinstate the loan. Once you confirm the loan is still in default, you can move forward. Before you go walking up to the owner of the home, consider these alternative methods first.
Best Ways To Contact A Distressed Homeowner Facing Foreclosure
- Send A Personal Letter
When contacting a distressed property owner, it’s best to be discreet. Your first option should be to send them a personal letter. In your letter you want to show remorse, because honestly, going into foreclosure is a nightmare. You don’t want to put pressure on a distressed homeowner, they’re already under enough as it is.
Let them know you saw their NOD in the paper, and you wanted to offer your help by purchasing the property before they get foreclosed on. Something like this:
Dear So and So,
I recently noticed your home in the Legal section of the classifieds and was hoping to help you out. I understand you may not be open to help from a stranger, but I felt your home would make a perfect fit for my needs.
If you aren’t able to keep your home from foreclosure, please give me a call sometime to discuss the purchase of your property before you go into foreclosure. Foreclosure will affect your credit drastically, but if we can negotiate a deal, we can save you from foreclosure, and you might be able to get a little equity out of it.
I can only imagine what you’re going through. Please don’t take this as a hard sell letter. I truly love your home, and I would really love to help you avoid foreclosure. I love the way you planted that flower bed in the front of the sidewalks and I really love the paint color of your front door. If this is something you would like to discuss, give me a call at 123-456-7890.
A personal hand written letter is the best way to contact a distressed homeowner. This letter is something I came up with, and you can use it if you want. Be sure to talk about what you like in the home as I did about the flower bed and the paint job. Let the owner know you’re not here to steal their house, but to take care of their home.
- Contact Them By Phone
If you’re personal letter doesn’t receive a response, you can try and contact them by phone. When you talk to a distressed property owner, don’t hard sell them. Most people feel embarrassed when talking about foreclosure. You need to reassure them that this is something that happens, and you only want to help.
Let them know you want to help them avoid foreclosure by purchasing the home. Be kind but don’t beat around the bush. Keep the conversation short. Tell them to think it over, figure out the numbers, and get back to you. If they call you back willing to sell, if the numbers work, than you probably just got a great deal.
- Meet Them In Person
The last option you want to do is confront them in person, but sometimes it’s the only way to get a hold of them. Many people will ignore your personal letter or throw it away, and you may not be able to get their phone number. One of three things could happen when you confront an owner:
The homeowner could become very upset and throw you off their property; no one likes to go into foreclosure. They may be open to negotiations and sell the home, or they may just decline your offer as they plan on paying the backed payments.
When approaching the owner you need to recognize their rights as the owner of the home. If they tell you to leave, you need to leave. Do not pressure them if they are not open to you purchasing their home. If they don’t want to sell, you’re going to have to wait until the property goes to auction.
Buying a home during the pre-foreclosure process can be very positive. You can save a home owner from the affects of foreclosure, keep the neighborhood values from dipping, and purchase a property at a great price. But you have to approach the situation delicately, and be patient. If you are interested in purchasing Logan Utah foreclosures, please give me a call so we can discuss your options.
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