| Step 1. Find the Best Online Pre Foreclosure List | | | | ensure a profit when you sell the property. |
| You need an accurate source to quickly find | | | | Make sure the online source has the properties market |
| homeowners in default. | | | | value and the loan payoff. |
| It sounds obvious but so many lists are incomplete or | | | | Step 3. Check if the Listing Been Dismissed |
| have incorrect information. Many online sources have | | | | Make sure your list includes the attorney that is |
| properties that are in REO or foreclosure status but | | | | handling the homeowners case. Many times the owner |
| few have any "pre foreclosure listings". | | | | can work out a loan modification with the lender while |
| This is the first stage where the homeowner has | | | | the property appears on a pre foreclosure list. One |
| missed one or more payments and the lender has filed | | | | phone call can save you valuable time! You don't want |
| a "Notice of Default". | | | | to pursue homeowners that have solved their problem. |
| Getting your hands on this list is SO critical to your | | | | So weed your leads for 40% equity and make sure |
| ability to make money in foreclosures. | | | | that the homeowner is still in distress i.e. no loan |
| Step 2. Weed Leads for 40% Equity | | | | modification has been worked out - then make a |
| Once you have access to your pre foreclosure list, | | | | sincere effort to contact these homeowners. |
| you MUST find homeowners with at least 40% | | | | You'll be amazed at the amount of homeowners in |
| (hopefully more) equity. | | | | default leads 40% or more equity, and these people |
| Example; 200,000 market value - $120,000 (loan | | | | need your help. |
| balance) = $80,000 (equity) | | | | Online sourcing of leads first critical step to making |
| 80,000 / 200,000= 40% equity | | | | great profits in preforeclosures, without good leads you |
| Why 40% | | | | will get discouraged and probably quit. So get to it! |
| Because as an investor, you will assume repair and | | | | There are so many homeowners out there in default |
| holding costs, plus you'll want to offer the distressed | | | | now the time to start couldn't be better. |
| owner some sort of exit cash. That 40 % will absorb | | | | Gathering 20-50 solid leads per week using this |
| repair, holding costs cash to the seller at closing, plus | | | | method is critical to CLOSING DEALS. |