I have gotten several email requests on how to improve their CFK success rate. And before I get started please email paul@REOheaven.com for a waiver releasing me of all liability : ) Our system is CENTERED around the Los Angeles area so please review your local city ordinances and see how the steps below apply to you.
I never let my ego get the best of me, so although our steps below have worked for us and yielded us an almost 90% CFK to vacancy success rate, our system isn’t the ONLY way to do this. I never get complacent and am always learning and sharing. I believe in paying it forward and I also believe that there are veterans AND some up and comers that I can learn from too. Stay hungry. Stay and open minded. Here’s how the REOheaven.com and REOhell.com team do what we do like if it we’re doing for TV.
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1. Check the LOCAL MLS HISTORY ASAP: A) Recent MLS history will USUALLY indicate if the property is VACANT or NOT. B) We have noticed that MANY MANY properties that have become REOs were once SHORT SALES. Find out who the former listing agent was and contact them and advise them that the property is NOW AN REO. I know what you're thinking--Why would this agent want to help ME? Well because many of these LISTING AGENTS were actually the same AGENTS that SOLD them the HOMES. In many cases, the listing agent of the SHORT SALE was ACTUALLY a family member. When we explain the occupants circumstances, the majority of the time the agent will help. That third party assistance by someone they know and trust MAKES A HUGE DIFFERENCE.
2. Check the WHITE PAGES: Sounds almost TOO easy doesn't it. But this is a HUGE step that many agents forget. Use the white pages to see if you can make contact with the occupant by phone.
3. Google the OCCUPANTS name: Again, another HUGE step that many agents don't consider. Remember way live in the age of social media where EVERYBODY is connected. Do you know HOW MANY email ADDRESSES and personal social web pages I have found just by Googling someone's name? Google your own name and see what comes up. If not much--then SHAME on you as an AGENT! Incidentally, I just discovered that an assignment I received on Friday was owned by a celebrity (wont say who.) It turns out the property was their LEGAL NAME and when GOOGLED it led me to who they were as a CELEBRITY. I have an email into their agent who didn't take my calls. I guess I won't be getting her autograph anytime soon.
4. HOA Assistance : If it's a condo, PUD, or townhome get a hold of the HOA. Send them a copy of the trustees deed and advise them that the property has been foreclosed on and that we need to know any of the occupants info that they might have. Sometimes they help. Sometimes they don't. So what. You still need the HOA info when you close the escrow right? Might as well get it now.
5. Talk to Neighbors: You have to be careful with the privacy laws, but speaking with neighbors to confirm that SOMEONE is living in the property can make all the difference in the world. Often times, after presenting my business card, the neighbors will spill the beans like NOBODY's BUSINESS about who lives there in the REO, when they come home, what they did last weekend...you get the picture.
6. Post a Notice of Foreclosure. Each lender has different requirements. Speak to your lender about what VERBAGE they'd like for you to use. Make sure ALL--I do mean ALL--of your contact info is there. Whats the use of putting a notice of foreclosure if the occupant can't get a hold of you? And agents PLEASE--we are professionals! Answer your phone OR your emails! Real Estate professionals get a bad wrap for not answering their phones and returning messages AND I KNOW WHY. I can ALMOST NEVER get a hold of a fellow agent AND I'M in the BIZ! Now, if you're like me--my voicemail CLEARLY STATES DO NOT LEAVE ME A MSG as this is an UNATTENDED VOICE MAIL BOX. PLEASE EMAIL ME @ paul@REOheaven.com for a QUICK RESPONSE. I will say this I do this for THREE REASONS. ONE: I got BURNT OUT answering calls FOR NON-BUSINESS NON-URGENT DO IT YOURSELF READ IT YOURSELF THE INSTRUCTIONS ARE ON THE MLS or MY WEBPAGE Questions! TWO: I prefer to have EVERYTHING in WRITING. It seems to help me stay organized AND DOCUMENTS everything I and more importantly the person I am communicating with does. THREE: I have 2-3 people monitoring my EMAIL 24 hours a day.
7. Visit OFTEN. Just because you went ONE TIME doesn't mean YOU GIVE UP if you don't make contact with the OCCUPANT. You keep trying!
8. Feel some COMPASSION and REALLY have some DESIRE to HELP. Understand that many of these people have been bamboozled by SO MANY PEOPLE that they wouldn't trust MOTHER THERESA anymore. Do your best to make them understand that you ARE REALLY trying to HELP. No one wants to be EVICTED.
9. Mail the notice of foreclosure VIA Certified Mail REQUIRING SIGNATURE. By doing this you will be able to know who signed for it and compare the names to the former OWNER of RECORD.
10. Know WHO THE LENDER IS. This is VERY IMPORTANT. Don't go in there blind. I KNOW that many of our REO assignments are from Asset Management Companies--BUT--do your homework. Find out who the LENDER IS. The FIRST question MANY of the OCCUPANTS will have is, "What bank do you work for?" and not being to answer that correctly will make ALL the DIFFERENCE in the WORLD in them having confidence in you.
That's it for now. Best of Luck. Love what you do and truly believe that you are doing a SERVICE to the COMMUNITY by helping stabilize the economy through Real Estate.
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