I had an interesting conversation with a Movoxo client and long-time friend about generating Loan Modification Leads.
In short, here's what he's doing - and it's working like gangbusters, as of Dec 08:
a. Get data from a major data provider like experian. He's looking for people that are 60 days late on a mortgage of at least $200k at 90% CLTV or higher.
b. Drop a postcard to them. He gets about a 3% to 6% response rate, which is great, and of all incoming calls, he can close about 20% on average.
c. He didn't say what his cost for the data was, let's say it's .34 per raw data record (high? low? I'm not in that business.. let me know...), then add .50 per postcard to be conservative (out the door including postage) so he's in for $840 to hit 1,000 people; out of this he'll get 30-60 calls and close 6-12 deals at ~ $3k each. Spending $840 to make $18,000+? Sounds like a cash machine to me.
And so this is why everyone wants loan modification leads. There's been some interesting discussion here on AR as to whether this is basically "predatory loan modification"... the answer is probably. Do people want the service? Yes. Is there any oversight to loan mods currently? Not enough, IMHO - a ton of people are doing business illegally and even with questionable ethics.
That said, loan modification is clearly a better solution for the banks in many cases e.g. florida, where the foreclosure rate is so high that banks really get hit when taking a property back. Other states like CA are pummeled with marketing, but the values are still often high enough (in some areas) that the bank would rather just let it go REO and sell it.
Anyway, our video (see http://www.movoxo.com/blog/loan-modification-leads/ ) used to help generate loan modification leads is some great ammunition to help you sell if you're in that business. You can add it into any site, and the branding is customized to you. We can optionally replace the background flag with your logo (extra charge, but it's a heck of a lot faster and cheaper than getting your own video from scratch made) - see the site for more info.
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