How To Contact Owner of a Pre-Default Home

The owner whose property is in the pre-foreclosure stage may be pursuing other options to attempt to cure the default (in other words bring current the back payments). Still, a serious offer from a pre-qualified buyer may in some instances prove to be the best solution for the pre-foreclosed property owner.

By contacting the pre-foreclosure owner directly before the foreclosure process builds to a full head of steam, both the buyer and seller can benefit. The buyer can very often gain from tremendous discounts on the purchase of the property while the preforeclosure owner can get out from under the mortgage and escape from having his or her credit history being ruined. Unique and flexible sales agreements, along with low down payments, are also possible options available during this period of time — if structured properly.

Approaching Pre-foreclosure Owners: Sensitivity and Strategy

Buyers interested in contacting the pre-foreclosure owner must be sensitive to the fact that the owner is probably in the midst of a delicate financial crisis and as such is likely weighing his or her options before taking further action. Prospective buyers must therefore approach the pre-foreclosure owner in a considerate manner which is both nonaggressive and respectful of their need for privacy.

Effective Communication: The Advantage of Postcard Contact

Keeping those considerations in mind, probably the best way to contact a pre-foreclosure owner is through the mail.

Postcards are usually the method preferred by investors to contact a pre-foreclosure owner because they are a much shorter, quicker and more efficient way of communicating the buyer’s message which is also less time consuming for the pre-foreclosure owner to read.

Persistence Pays: The Importance of Multiple Mailings

One postcard is not always going to do the trick. Many successful pre-foreclosure buyers and investors send out quite a few postcards to properties in their area before they find an owner who is interested. It’s not uncommon to send out several postcards to the same owner during the foreclosure process. The owner may be more interested to sell as the auction date looms closer. Therefore, RealtyTrac recommends sending out at least three or four postcards to each preforeclosure property. Mail each postcard at seven to 10 days intervals, so that the direct mail campaign is effective without overwhelming them.

Patience in Response: Navigating the Pre-foreclosure Timeline

Don’t be surprised if the owner does not respond to the postcard immediately. In most states, the owner has several months between the initial foreclosure notice and the public auction. During this time the owner will consider all the options available, including refinancing or selling. An owner’s first reaction is usually not to sell. But if no other options work out, selling is a better option than losing the property at public auction.

Alternative Contact Methods: When Postcards Aren’t Enough

If the owner doesn’t respond to postcards, some buyers and investors will try to reach the owner by phone or in person. If you do this, be prepared for a possible rude response as these methods of contact are more inherently confrontational.

Respecting Owner Rights: Handling Rejection Professionally

And always keep in mind that the owner in default retains ownership rights to the property during the pre-foreclosure period. If they are not interested in talking with you, it’s time to leave.

Auction Opportunities: The Last Resort in Pre-foreclosure

If the owner rejects all of your contact attempts, you may still have a chance to purchase the property at public auction, which occurs if the owner doesn’t sell or pay off the amount owed during the pre-foreclosure period. RealtyTrac posts auction properties, and subscribers can keep tabs on that list to see if a property has been scheduled for auction. You could also call the trustee periodically to check if an auction has been scheduled.

Building a Connection: Setting Up a Meeting with the Owner

Once you’ve made initial contact with the owner, try to set up a meeting with him or her at the house foreclosure for sale to discuss the situation and the options. Ideally, this can be a time where the home owner can get all the cards out on the table and you can evaluate the condition of the house foreclosure for sale property so you can make a better decision.

Staying Interested: Following Up After Initial Contact

If the owner doesn’t express any interest in talking to you, leave your name and contact information and let them know you’re still interested if they change their mind. You may want to follow-up with a letter or phone call later depending on how interested you are in the property and the extremity of the owner’s response.