How to Market before Lis Pendens
Often times I will get inquiries about how to market clients that are late on their deed, but have not incurred an formal Notice of Default. The main matter is Notice of Default listings tend to have a low conversion ratio. Nearly all of the time terrible conversion ratios are attributed to the data going public at a particular point in time. In which case the market gets saturated with telemarketing, direct mail and circulars. Some Other reason is that most of the time the borrower is so far along in the foreclosure process they are already half way out the door and have forfeited on redeeming their home or credit.
The good news is that there is a way to contact the borrowers when they are only 30-60-90 days late on their deed. We obtain this pre-foreclosure data from the credit bureaus because deed lenders will report to the authorities when a client misses their mortgage payment. When you reach a client at this stage, they become ideal prospects for a short sale. At this period they are behind 1 or 2 installments and are at the critical decision making point regarding whether or not they are going to make an effort to save their home. It is now time for you to make contact and educate the client about the possible benefits to enter into a short sale transaction.
