I work out of South Floria, one of the hardest hit areas by the foreclosure crisis. Every time I prospect for expireds or FSBOs I find that either they can't sell or refuse to sell for what there home is worth because they are underwater.

So, I have shifted focus to knocking on doors only where there are Lis Pendens. Because these properties are not so close together I am only able to get to 10-15 a night. Of these I will sit down and analyze the finances of 3 and either refer them to a lawyer for a loan modification (the lawyer pays me for collecting the data and servicing) or listing them with a short sale.

Has anyone else had similar problems prospecting for sellers in hard hit areas? How have you continued to thrive?

Thanks!

Sounds like a great plan to me.

Just be careful when knocking on those doors you never know what type of mindset they may be in and you are probably not the first person knocking on their door. They have probably already had a few collectors. I leave my reo leads to companies like reo prep etc.

A lot of people in that situation are pretty thin skinned and sometimes dangerous. I knew someone who did that kind of prospecting, and they would start by asking for someone who didn't live there. Then, based on the initial reaction they would either look at the clipboard and say "oh I am sorry I mean Mr (insert the real name of the homeowner)", or if the person seemed excessively angry, they could act like they were at the wrong house and leave without getting shot.

I did this for a SHORT time. I found that the people were angry and embarrassed that you have this information, and often yelled at me to go away, I didn't know what I was talking about...they have it taken care of already...etc.
I decided quickly that was not my cup of tea!

This might be a situation where reviewing an old Marine Corps text on Psychological Operations/Warfare might be good preparation.

As suggested above, the terrain is loaded with landmines; so a carefully laid out plan of attack is well worth the effort.

Last weekend, it wasn't the Owner of Record (who's already evicted) who was the problem . . . . instead it was his nutso neighbor who tore into both my prospective Buyers and me, trying to discourage anyone from buying next door. He's already removed the For Sale sign and has now erected a Jersey Barrier to keep people from entering the driveway. I had to call the Sheriff.

I was just reading your posting on this email

may I ask who is the REO PREP.
I am looking to get reo assignments and will love to get some advice as to were shall I applied.

thank you

There are plenty of these stories around - although typically neighbors will be more friendly. They have an interest in getting people to move into their neighborhood so that prices don't keep falling as well as trying to get good neighbors.

I've never had an issue with people becoming violent. They are usually fairly polite even if they are annoyed. More affluent neighborhoods seem more closed minded to your helping them; however, I have strong interest in moderate to lower income areas. Unfortunately they are all interested in loan-mods, and most either can't afford them or don't qualify!

These are all very helpful posts when approaching financially distressed sellers. I teach a number of community education based real estate classes here in St. Paul, MN, and like some of the comments above...most people in this type of scenario are embarrassed. So if you can find a way to approach these sellers while putting their embarrassment at ease, then I think you may have a success yield. Good luck!

Just an update everyone. I went out on Thursday and knocked on about 12 doors. If the person wasn't home I left a note for them to give me a call back. I talked to 4 people at their homes and got three phone numbers for follow-up.

One of them invited me in and has already conferred with my attorney. He most likely will be trying to rent the property out. The other two were already working on a loan mod. One was still debating whether they should just sell the property because they are underwater.

I also had two call backs who said I can keep in touch with them.

Most of my leads were from Lis Pendens filed over a month ago. I know if I get fresher leads I'll do better.

@Brian I agree that most people are embarrassed about their situations. For some reason my approach usually disarms them and they open up to me with some questioning!

My problem is continuing to prospect and stay motivated. I was thinking of using a similar technique with expireds but I haven't really thought up a good script. Oh well, I could always shoot from the hip. Maybe next week!!

reoprep has been great for bpo orders, and short sales for me. I used to have more actual reo leads but the short sales seem to be working now. They are a sponsor here over on the right side of the page if you would like more information.

Knocking on doors is hardcore.

[quote=Allison Ables]Knocking on doors is hardcore. [/quote]


Yes, scary too....Be safe out there.