The owner of a pre foreclosure home is often a willing seller. Faced with the burden of mortgage payments he can’t make, as well as the damage to his credit rating, he’s likely to be happy that you, the pre foreclosure buyer, came along.
But you will encounter owners in pre foreclosure who are not cooperative. They’re likely to be embarrassed or even in denial about the mess they’re in. They may assume that all pre foreclosure investors just want to take advantage of them. They may also be reluctant to let go of their property without somehow making a profit – even though they’ve defaulted on the mortgage and are now in pre foreclosure. These owners need to understand the benefits they’ll receive from letting you take their pre foreclosure home off their hands.
When you approach the owner of a pre foreclosure home, don’t waste time showing your knowledge of industry jargon or your investment savvy – he’s not likely to be interested in how much money you’ll be making in the deal, and is probably already feeling the pain of the eventual loss of his property. But the more clearly the owner of a pre foreclosure home sees how he benefits from selling now instead of waiting for a miracle, the more likely he is to be willing to work with you.
When you share the benefits of selling now with the owner of a pre foreclosure home, start with these:
A speedy solution to a big problem. When you buy the pre foreclosure home (or flip it to an investor), the deal can be done quickly. There’s no waiting for credit checks or real estate agency red tape. The pre foreclosure owner can quickly move on with his life.
Peace of mind. When you take the pre foreclosure home off the owner’s hands, you quickly remove the albatross of looming foreclosure, the stress of knowing he can’t bring payments current, and, above all, the damage to his credit.
Preserved Credit. Let’s stress again how you can save the pre foreclosure owner’s credit by buying the property before the bank forecloses.
There are other benefits to mention, as well. The point is, when you can clearly show the owner of a pre foreclosure home how he’ll benefit by working with you, you’re more likely to get the deal, as well as create a win-win situation.