Foreclosure Training: Avoid the Scams

Avoiding the Scams
By:  Dan Waterman, Instructor
NFSTI

Foreclosure Training:  Avoiding the Scams

On a weekly basis I get to live out my dream job.  I go into training facilities around the nation within real estate brokerage firms and teach classes on marketing, technology, and the processes of foreclosure real estate.  Typically I begin the class by introducing myself, my company and my credentials.  Shortly thereafter we move into the introduction to REO portion of the course.  Once I've determined the general knowledge level of the participants I either move into more complex aspects of foreclosure real estate or spend a bit more time getting my students familiar with the unfamiliar territory of Real Estate Owned by lender.

Rewind 3 weeks....

The phone call I make is a cold one.  It begins with my maneuvering past the front desk of a brokerage firm whom I've targeted for a complementary 2 hour class on REO introduction in order to speak to the appropriate decision maker.  Once I've identified the appropriate person I have about 20 seconds to blurt out all of the awesome things that our company is doing and that I want to visit them for FREE!  And not to mention that the only sales pitch that I'm going to throw is that all of the information that I'm teaching and more is located on our website for $37.  Believe it or not, this is VERY challenging.

With all of the faux REO training resources available nowadays I instantly get lumped in to that crowd.  While other companies offer out-dated lists of asset management companies (on paper nonetheless), ambiguous techniques to get you into the REO industry, and "Get-Rich-Quick" formulas for the unscrupulous I'm simply trying to offer the most information-rich, accurate and overly achieved products on the market.  But who's to say that I'm not designing a beautiful package that's empty on the inside?  Understandable thought on the side of the consumers.

Through this experience I've decided to compose a Top 10 List of Signs of Scams (pertaining specifically to the REO/BPO industry).  Here it is:

1. Avoid anything without a 100% money-back guarantee.
2. Avoid products on sale that are in paper format.  Everything is electronic now.
3. Verify with references any company that promises business.
4. Demand company policies, terms, and conditions.  These should be published on the website.
5. Don't work with any company that doesn't advertise it's contact information (especially phone).
6. Verify any certifications and/or designations with industry experts.  Will it even be worth having?
7. Avoid 3rd party referral fees.  The only exception to this is asset management companies.
   
8. Request a list of references of previous clients and contact them for their experience.
9. Ask them what makes them different than other companies.  Why pay good money for something you can find for free on the internet.
10. When it comes to training ask if they are approved & regulated by outside parties such as the Division of Private Occupational Schools.