Short Sales; It's Not Always About Being First

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At ForeclosureRadar we track all public record notices.  I routinely hear from people who are looking for “mortgage lates”.  What they want is a list of people who have missed loan payments (30/60/90 days late) but are not yet in default.

It is possible to purchase delinquent loan data.  If you have not done a credit opt out  (http://www.ftc.gov/privacy/protect.shtm) then all of your credit history can be sold.  Years ago I knew a lender that purchased “loan triggers”.  This was a list of people that had a credit report pulled for purposes of getting a home loan and this lender would buy that data so that they could target that individual.  It is important to know that all credit data can be purchased for a price.  Now you know that if you get those pre-approved credit card solicitations in the mail it is no coincidence.

There are seminars out there that teach real estate professionals to go after homeowners with “mortgage lates” to see if you can get a short sale listing.  Keep in mind that when you purchase this “mortgage late” data you must use it in compliance with the Fair Credit Reporting Act (http://www.ftc.gov/os/statutes/031224fcra.pdf) since this in not information that is a matter of public record.

A couple of years ago Sean O’Toole wrote about the 5 stages of grief and how they apply to homeowners in foreclosure.  It is probably not surprising that one of the early stages is anger.  He wrote “I suggest it is important that you learn to have some understanding for which stage your customer or partner may be in at the time. For example a homeowner that is currently in the anger stage may be better left with some comforting words and an offer to follow-up rather than a full-tilt sales pitch”. http://www.foreclosuretruth.com/blog/sean/foreclosures-and-five-stages-grief/

Getting there early only means making a contact, not looking for a fast way to get a listing.  If I had to give an analogy I would liken this to selling burial plots.  When people are in need they will have many questions and be grateful that you are there.  If you try to “get to folks early” by hanging out in the emergency room thinking that a certain percentage will need your services you could risk offending those that have not yet given up hope that they will recover.

At the end of the day, this is a relationship business.  It isn’t about being the first one there it is about being the person that is there when the time is right.  Most importantly, being the person that is there with good information and compassion to help folks make the decision that is best for them not for you.