Our office has been inundated over the past few months with emails and calls about the new Foreclosure Mastery(TM) program. We must have hit a nerve with quite a few agents who are looking for a new way to generate business in the North American markets. The enthusiasm around this topic has been great and, in fact, more than I expected. One thing we couldn’t predict was exactly how much information gap there was for Foreclosure Agents.
So if you’ll share a few minutes with me today, I promise to add a little information to your life about foreclosures and how they can be a source of new leads for sellers which finally ends as listings. Before you start, and end up generating even more emails and calls, please note that this short email is in no way meant to be an answer to everything related to foreclosures. I will simply answer the most frequently asked questions that we have received in the last few months.
Basically, there are only three types of foreclosures:
1) Before the foreclosure
2) foreclosure
3) Post-foreclosure (REO).
Pre-foreclosure
Pre-foreclosure describes property in a state of default prior to the Foreclosure Auction. A property enters the pre-foreclosure phase once the lender publishes a public record notice that the property owner is in arrears and intends to exercise their right to foreclose on the property. The amount of time before the auction varies from state to state, but the average is 3-6 months.
Thus, a prior foreclosure is a property where the owner is behind on payments (usually at least a couple of payments), and the bank has posted an official notice to the public that it will repossess the property if the owner does not arrange to do so. an alternate plan.
As you can project wisely, a pre-foreclosure homeowner can be a fairly motivated seller and have a strong desire to sell once they understand (or decide) that selling is the best way out of trouble. An agent trained (or trained) to deal with these types of sellers can get the property listed and sold before the auction date.
Previous foreclosures can be an excellent source of 100-600 new leads per 100,000 homes.
Mortgage’s trial
Not much can be done with a house in this state. Usually, depending on the area and the lender, 24 to 48 hours before the auction is too late. At that point, the house goes to the highest bidder at auction, which is usually held on the steps of the county courthouse (location may vary by area).
I won’t go into too much detail right now, but auction foreclosure tactics can be very fruitful for an agent. As you can imagine, there are a plethora of investor and bank contacts that a savvy broker can tap into. All of which could lead to new business.
For the most part, though, once the house goes up for auction, it’s not a good source of leads for the seller… unless you can get in touch with a bank or investor representative who wants to list with you once. take possession of the property. home.
Post-foreclosure
A home in this phase is typically what agents think of when they hear a property tagged for foreclosure. The bank has repossessed the property from the home owner and now refers to the home as Real Estate Ownership (REO for short).
Many agents think that this is a lost cause because there is often a local agent that has positioned itself to get the lion’s share of the REOs in a given area. This may or may not be true, and an Agent may reposition themselves to have a shot at these properties.
Another type of Post-Foreclosure is property purchased by an Investor. Often these investors have established relationships with agents in a market. However, a smart agent can still reposition himself so he can shoot them.
Conclusion
Therefore, for the most part, the best source of new foreclosure leads can be found in prior foreclosures. This new source of business could mean another 100 – 600 new and highly motivated leads (sellers) who are desperate for your professional help. And that’s just for a market of 100,000 homes. Your market could have even more.
Why hasn’t this opportunity been available before?
Well, before now, all the parts were not available. Today, the technology is in place, the business-in-a-box turnkey system is built, and the market for this business is very mature and growing.
So if you’re tired of your competition and interested in carving out a new niche for yourself that 99% of agents don’t know about, you can find out how to visit our website.