Wednesday, March 21, 2007

It’s notice of default time again

I just received an email from an agent friend of mine letting me know about a notice of default workshop that is coming up. I do not know if I will attend or not as it has been a while since I have dabbled in the field of pre-foreclosures and creative finance investing. However, it does raise the question, how can real estate agent capitalize on this new surge in NOD’s from “liar loans” coming due?

Many real estate agents actively prospect notice of default recipients. However, the pitch is typically the same. List with me, I can get your house sold before the bank takes it away. Unfortunately, many of these homes have larger amounts due on the loan than they are currently worth.

My recommended approach is to prospect to these people with the voice of help and reason. If you are not familiar with the process, learn about the process of forbearance to help the homeowner fend off the bank while he/she sells her home. Depending on local regulations, you may be able to charge for this service as a value add; in addition to giving the home owner more time to sell the home. Also, make friends with a few investors in the area who may be able to buy a property quick for the right deal. Regardless, when approaching a homeowner who is in the throws of foreclosure, approach them with the voice of honest reason and an offer to help.

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