How to Ride the Third Wave of Foreclosures to Your Best Year Ever

The Daily Beast tells us that a third wave of foreclosures looms. What, with unemployment expected to jump from 8.9 into the double digits, even homeowners with solid financial histories will find themselves going under.

However, while it might be raining in the front yard, it looks like the sun is trying to peek through the clouds in the back.


Realty Trac tells us that it’s “premature to declare victory yet” [February was a considerably slower month for foreclosures] since foreclosures were still at record highs.

In fact, 2.8 million households stood on the brink of foreclosure in 2009. That number is expected to rise to 3 million this year.

Welcome to the third wave.

What does that mean to you? Opportunities to help some people out. Before they lose their home. Yes. I’m talking about the pre-foreclosure.

Now, remember, working pre-foreclosures is less about padding your pocket and more about helping another human being.

I can’t stress that enough.

So, when approaching pre-foreclosures for the first time use these ideas to prove to them that you are truly their to help can save their home:

  • You can sell their home. Goes without saying, but some people need to be reminded.
  • You aren’t out to fleece them. Just the opposite. You want to help them save equity. Credit. Face. And you must mean it. You must have a heart. That means listening liberally and talking conservatively.
  • You are a legal expert: You know all the contracts, forms, disclosure statements backwards, frontwards, inside and out. If they did it solo–or worse, not at all–chances are high they’d miss something.
  • You are a professional: Like a doctor or lawyer, you’re an expert. You live and breathe this stuff. Ask them how many people would defend themselves in a court of law? Or, how many people feel confident performing surgery on themselves? Tell them this is your bread and butter.
  • You are a master of the market. You know the market and can price the homes competitively. Explain to them the importance of pricing right the first time and the danger of over-pricing. The last thing they want to do is waste time.
  • You are a expert on financing. You know how to pre-qualify, qualify and point prospects in the right direction for financing. But with those who want to buy pre-foreclosures, in my experience, have normally got the cash. Let them know people with ready money can buy their home.
  • You are a specialist: You can handle criticism, objections and demands objectively and professionally…a must when trying to persuade someone to buy a home that is close to foreclosure.
  • You are a negotiator. You know how to balance offers, counteroffers and negotiate contingencies that often will drive a FSBO bananas. Offer your batting average for selling homes at full asking price. If you’re good, they’ll think you’re a genius.
  • Finally, you are a network. Develop a list of the tasks that must be completed before closing, including all the inspections, insurance, permits. Then explain to them you know all the right people and could have everything arranged in an afternoon. They’ll get the point.

Listen: I think you’ll agree, if you step out there and help some good people sell their homes and save face…it will be your best year ever.

Besides, put yourself in their shoes. There’s nothing better than doing for others what you’d want them to do for you.

So tell me…have you been working pre-foreclosures? Any success? Any tips to help improve this list? I’m looking for ways to make the first encounter a lasting impression.

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