Marketing Effectivley Prior to Lis Pendens
Often times I will get questions about how to market borrowers that are late on their deed, but have not incurred an official Notice of Default. The main matter is Lis Pendens lists tend to have a terrible conversion rate. Nearly all of the time low closing ratios are ascribed to the data becoming public at a particular point in time. In which case the market becomes flooded with calls, direct marketing and flyers. The second largest issue is that often once an NOD has been announced, the client may have already vacated the home.
The pleasant news is that there is a way to contact the borrowers when they are only 30-60-90 days past on their note. We obtain this pre-foreclosure list from the credit bureaus because mortgage lenders will report to the bureaus when a client misses their deed payment. By reaching borrowers in this position they are perfect for short sale leads. At this point in time they are down one or two installments and are at a important decision making degree regarding whether or not they are going to make an effort to spare their dwelling. It is now time for you to make contact and educate the borrower about the potential profits to enter into a short sale dealing.
