Marketing Effectivley Prior to Notice of Default
Frequently I will get inquiries about how to market clients that are late on their mortgage, but have not received an formal NOD. Their main concern is that the Notice of Default lists that they are using for selling are not closing well for them. The cause those listings tend not to convert advantageously is because once the client information goes public they are inundated with phone calls and direct marketing. The second biggest matter is that often once an Notice of Default has been published, the client may have already abandoned the property.
The pleasant news is that there is a way to reach the clients when they are only 30,60 or 90 days late on their mortgage. We pull this pre-foreclosure information from the credit bureaus because deed lenders will report to the bureaus when a borrower misses their mortgage payment. If you reach a client at this stage, they are perfect prospects for a short sale. The clients have just missed their second or third deed installment and they need to make a decision before long if they want to be able to keep their dwelling and credit. It is now time for you to make contact and educate the client about the prospective benefits to enter into a short sale transaction.
