Short Sale Tip #13 : 5 Questions To Ask The Seller…Before Taking The Listing For a Property in Foreclosure
March 3, 2008
Short Sale Tip #13 : 5 Questions To Ask The Seller…Before Taking The Listing For a Property in Foreclosure
In a down market, when the phone rings, agents and investors often can’t wait to get that next listing or contract. They rush out before really thinking about their plan of action and what makes the most sense.
To us, working a deal so that it generates the highest potential profit is the way to assess a deal. One of the ways we sniff out the good deals is by asking the Seller 5 simple questions. While the questions are simple, they are quite pointed and exploratory. Once answered, we have immediate insight as to how we are going to format the contemplated transaction.
Within the first 10 minutes of speaking to the homeowner, we already know where we are headed with a deal. Let me not forget to add…these questions are asked over the phone BEFORE we even leave for the appointment. I’ll tell you why in a moment.
Question #1. Can you resume making your monthly payments if the bank waives your arrearage? I want to find out if this homeowner is really motivated. I want to know if this homeowner is at the end of his rope and realizes that all hope is basically lost.
2. What kind of repayment plan can you stick to? I want to know if the bank continues to call the homeowner, which they will, if he is a candidate for a loan workout, and if he is, I want no parts of this transaction. There is no way I am going to spend my time working on a short sale only to find out in a couple of weeks that the homeowner has been able to save their home and has worked things out with the bank. While great news for the homeowner, it means I don’t get paid.
3. Have you tried to re-finance? I want to now if he is talking to anybody else. Sometimes a mortgage broker or other agent will tempte the pre-foreclosure homeowner with mailings and letters designed to let the homeowner has a chance at being qualified for re-financing. I also want him to tell me..and himself that he knows his credit is shot and that re-financing is out of the question. It kind of slams the door on homeowner and lets him know that his chances to save the house are slim and none…and that slim just hopped a bus to Alberquerque!
4. Can you borrow any money from family or friends or your church? Is there an Uncle Charlie in the wings, is he speaking to the congregation? I also want to know how strong his will is. When one is humbled enough to basically beg then you have a Mustang with a broken spirit. Remember, we did not put the homeowner in this position…the position was there before we answered the phone call. If you have a weak stomach for this remember, it was your marketing piece to a person in foreclosure that set this plan in action. Don’t get squeamish now! If you choose to work the foreclosure market, you need to understand what you are going to be dealing with and understand the nature of this niche of real estate.
5. Have you spoken to an attorney about filing bankruptcy? I want to know if he has spoken to any attorney and if he is presently represented, and I also want to know if he can afford to hire an attorney in the near future. Undoubtedly when I present my offer he is going to say that he wants his attorney to look it over. If I know in advance that he does not have an attorney I know it’s a ploy and I am close…real close…why? No one uses the “attorney” ploy if they do not want to do the deal. If the homeowner did not want the deal they would just say no! This ploy means I am close to getting what I want.
Here’s a bonus for reading! The most important question.
6. If I can get the bank to allow you to sell your property for less than what you owe, how much would you need to move on with your life? The pre-close! A-B-C..”always-be-closing”. I ask this question and then just shut up..dead silence. I let him know that there may be some money coming which is more than I bet anyone has told him.
I am letting him know that I know the ride is about to stop and I am letting him bow out gracefully. When he mentions the number…the number does not matter, I know he’s mine. He needs the cash bad and he’ll take just about anything I offer him.
You see..he just admitted he wanted out. The number is not what the question was designed to ferret out. I wanted him to tell me he was ready to walk away. Now we set the appointment going out to the home KNOWING the following:
a. the homeowner is out of options
b. has basically no money
c. probably is not represented
d. WANTS OUT BADLY!
Above I told you there was a reason why we ask these questions BEFORE we go out to the house. Actually there are two reasons, first we will re-state the answers to him, in front of the spouse (we won’t take a one-legged appointment), and secondly and more importantly, it tells me what documents to take out for this particular meeting.
Can you tell me what documents to take on this appointment? It does not matter if you are an agent or an investor. You also need a special type of person to tag along as well. Who is this person?
In our seminar workshop we teach you how to successfully pose these questions and what the answers mean to your pocketbook, and we teach you what documents you need to bring along to ensure you get this deal done with the highest potential for profit. We’ll also tell you the criteria the other person coming to the meeting needs to have and what his/her role is.
Click Here For A Free Downloadable Copy In Our Free Forms & Documents Section
If you are ready to take the next step in your real estate career and want to learn how to profit from foreclosures, make sure you enroll in one of our upcoming Pre-Foreclosure / Short Sale Seminar Workshops.
You will learn how the foreclosure process works and how you can profit from this growing market. Instead of thinking that the market has turned against you, get educated and learn how to take advantage of this unbelievable opportunity for the educated real estate industry professional.
Ultimate Pre-Foreclosure & Short Sale Seminar Dates (more to be added)Ultimate Pre-Foreclosure & Short Sale Seminars (online version) : Learn the “Art of The Short Sale” from the quiet comfort of your own home or office. (coming soon)March 8, 2008 - Miami, Florida - $250.00 discounted to $195.00 if you register prior to March 1, 2008 - REGISTER NOW
See our video below to see what some of our past attendees had to say about the Ultimate Pre-Foreclosure & Short Sale Seminar!
This seminar presentation is unlike any other short sale seminar on the market. Many of our attendees have taken the class 3 and 4 times or more!
90% of our seminars sell out in advance.
If you feel that you can become a short sale expert by taking a rip-off imitation seminar or a free board seminar, then you are really missing the boat on short sale opportunities!
For more information on the 2008 Ultimate Pre-Foreclosure & Short Sale Seminar Series, please call us at 954-566-0923.
I have had 3-lenders in a row refuse to pay the “negotiation fee” on the HUD. Sounds like they all just took the same class. Have you run up against this tactic ?
I have seen the same - i think barry and the boys - do it a whole lot different - HOW? - go to their class and thet’ll tell you how.