2 Lethal Mistakes Realtors Make When Prospecting Foreclosures

In the past I’ve written on approaching foreclosures and preforeclosures.

Since then I’ve heard a couple of alarming stories about agents approaching foreclosures aggressively. Like face to face…on the first time they met.

Seems pretty straightforeward, but you just don’t approach foreclosures this way. That is if you want to have any hope of working with them.

People who are going foreclosures are very sensitive about what they are going through.

Put yourself in their shoes. How would you feel?

This ranks up there as the deadliest and most common mistake:

One: Agressively approach foreclosures, face to face.

The other mistake is kind of the opposite.

Two: Passively approach foreclosures.

Remember, foreclosures have a whole lot at stake here. And some foreclosures are reaching out [and getting burned]…but mostly they are remaining quiet, trying to protect their pride and dignity.

So, we know the thing for them to do is to let down their pride, but we don’t get in their face. But neither do you back away and give up after one rejection.

In fact, for the best results, you want to approach foreclosures weekly, or every other week, with original letters.

Totally avoid form letters or postcards. They’ll see through that big time.

And each letter should reference the previous letter and always be different in some way.

And remember this: letters should appeal to the emotions of the preforeclosure homeowner because this is a difficult time for them. Your stance should be one of wanting to help. Make it clear how you can assist them, including offering cash for their equity, finding them a new place to live and keeping them from having a foreclosure on their credit history — something that could make it extremely difficult to qualify for a home loan for up to seven years.

In a nutshell, help them avoid a nightmare. And this takes some kid glove treatment. Persistant, sensitive treatment.

How about you? Have you heard any horror preforeclosure stories?

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Click Here to Leave a Comment Below 4 comments

Well, I am working as Real Estate agent at Century21 Central Realty in Newark, NJ for three years and everyday is a new situation. What could you do, to help me advance my skills?

Chris Giddings

Just had to add this to the blog. I urge every agent who is working the foreclosure market to represent the seller achieve the highest and best value for the property in the time allowed and do not participate in equity skimming. Our job as professionals is to represent ourselves and our clients in the most ethical manner. If the call of the ‘flip that house’ is to noisy to ignore. Hang up the license and act as your own person. Keep the name REALTOR away from the transaction. Lets help these people charge a fee and save them from a tough place, no glory can be found kicking a person when they are down. Chris Giddings

Gary Elwood

Thank you for sharing Chris. An excellent reminder.

maria Hansen

Just a rookie getting started, any helpful advise, I will take…Thanks


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