How to Reach a Borrower before They Get a Lis Pendens
Often times I will get inquiries about how to market clients that are past on their deed, but have not incurred an formal NOD. Their primary concern is that the NOD lists that they are using for selling are not converting well for them. The cause those listings tend not to close advantageously is because once the borrowers information goes public they are riddled with telephone calls and direct mail. Some Other reason is that most of the time the client is so far along in the foreclosure process they are already nearly out the door and have forfeited on redeeming their house or credit.
This is where our function gets in to relieve the topics named above. We obtain this pre-foreclosure data from the credit bureaus because note lenders will report to the agencies when a borrower misses their mortgage payment. If you reach a borrower at this stage, they become choice candidates for a short sale. The borrowers have just missed their second or third note installment and they need to make a decision shortly if they need to be able to preserve their property and credit. It is now time for you to make contact and educate the client about the potential profits to enter into a short sale dealing.
