Often times I will get inquiries about how to market clients that are past on their deed, but have not received an official Lis Pendens. The primary issue is NOD listings tend to have a low conversion ratio. Most of the time poor conversion ratios are attributed to the data becoming public at a certain point. In which event the market gets stuffed with telemarketing, direct mail and flyers. Some Other reason is that most of the time the client is so far along in the foreclosure process they are already half way moved out and have given up on preserving their home or credit rating.
The good news is that there is a way to contact the borrowers when they are only thirty, sixty or ninety days late on their deed. We obtain this pre-foreclosure list from the credit bureaus because deed lenders will report to the agencies when a borrower misses their mortgage payment. If you reach a client at this stage, they are ideal prospects for a short sale. At this point they are down 1 or 2 payments and are at the crucial decision making degree regarding whether or not they are going to make an effort to keep their dwelling. It is now time for you to make contact and educate the client about the possible profits to enter into a short sale dealing.
