Our office has been flooded for the last few months with emails & calls about the new Foreclosure Mastery™ program. We must have struck a nerve with quite a few Agents who are looking for a new way to generate business in markets across North America.
The buzz surrounding this topic has been great and actually more than I expected. One thing we couldn’t predict was exactly how much of a lack of information there was for Agents on Foreclosures.
So, if you’ll share a few minutes of your time with me today, I promise to add a little insight to your life on Foreclosures and how they can be a source of new leads for sellers that ultimately end as listings.
Before I start, and end up generating even more emails and calls, please know that by no means is this short little email’s intent to answer everything about Foreclosures. I will simply answer the most frequently asked questions that we’ve fielded over the last few months.
There are basically only three types of Foreclosures: 1) Pre-foreclosure 2) Foreclosure 3) Post-foreclosure (REO).
Pre-foreclosure describes property in a state of default prior to the Foreclosure Auction. A property enters the Pre-foreclosure phase once the lender posts a notice of public record that the property owner is behind, and they intend to exercise their right to Foreclose the property. The amount of time before auction varies from state-to-state but averages between 3 – 6 months.
So, a Pre-foreclosure is a property where the owner is behind on payments (usually at least a couple of payments), and the bank has recorded official notice to the public that they will take back the property if the owner does not arrange for an alternative plan.
As you may wisely project, a homeowner in Pre-foreclosure can be a fairly motivated seller and have a strong desire to sell once they understand (or decide) that selling is their best way out of trouble. An Agent skilled (or trained) in dealing with these types of sellers can get the property listed and sold before the auction date.
Pre-foreclosures can be an excellent source of about 100-600 new leads per 100,000 households.
You cannot do much with a home in this state. Typically, depending on the area and lender, 24 – 48 hours before the auction is too late. At that time, the home goes to the highest bidder at an auction, which is typically held at the county courthouse steps (location may vary depending on the area).
I won’t go into too much detail now, but the Foreclosure tactics at the auction can be very fruitful for an Agent. As you can imagine, there are a plethora of Investors & Bank contacts that a wise Agent can take advantage of. All of which could lead to new business.
Although for the most part, once the home goes to auction, it’s not a good source of seller leads… that is unless you can make contact with a bank or investor representative that may want to list with you once they take possession of the home.
A home in this phase is typically what Agents think of when they hear a property labeled as a Foreclosure. The bank has taken back the property from the homeowner and now refers to the home as Real Estate Owned (REO for short).
Many Agents think these are a lost cause because there is often a local Agent who has positioned themselves to get the lion’s-share of the REOs in any given area. This may or may not be true, and an Agent can re-position themselves so they can get a chance at these properties.
Another type of Post-foreclosure is the property purchased by an Investor. Often times these Investors have established relationships with Agents in a market. However, a wise Agent can still re-position themselves so they get a shot at them.
So, for the most part, the best source of new leads from Foreclosures can be found in Pre-foreclosures. This new source of business could mean another 100 – 600 new, very motivated (seller) leads that are desperate for your professional help. And that’s for a market of only 100,000 homes. Your market could have even more.
Why hasn’t this opportunity been made available before?
Well, before now, all the pieces were not readily available. Today, the technology is in place, the turnkey business-in-a-box-system is built, and the market for this business is very ripe & growing.
So, if you are tired of your competition and are interested in carving out a brand new niche for yourself that 99% of Agents don’t know about, you can find out how by visiting our website.
>>> Show Me How! <<<
Regardless of how you start or started working with Foreclosures, I highly encourage you to invest in training along the way. I have personally gained thousands of dollars in Real Estate Investing Profits from and investment of less than $20 in a book.
Keep on Learning and Keep on Investing,
Dan Matejsek, VP
P.S. If you’d like to get a bigger piece of the Foreclosure Real Estate Profit Pie, start Foreclosure Investing on your own behalf, and would like some very affordable, excellent training click here.