If you have been reading any of the recent real estate articles that discuss the "Making Homes Affordable" program, specifically the loan modification part, you will hear a lot of clamour about its inability to produce long term loan modifications for borrowers. It has produced short term solutions without the ability to convert a vast majority of loans to a long term lower rate, thus many borrowers are going to still enter into foreclosure after the short term fix expires.
Why is this beneficial to investors? Well, you will have a lot of frustrated home owners who have just had it and need to get out now. YOu will have a great source to tap into too...loan modification companies, debt counselors, bankruptcy attorneys, and mortgage brokers. If you network with these folks, you will have a continuous source of MOTIVATED SELLER leads. There are a lot of people who have been able to postpone, but who will not be able to qualify for a permanent fix, thus another wave of foreclosures will be coming in 2010.
Networking with these folks could be more accurate and effective than chasing foreclosure notices in the courthouse, because they know what is going on right now and what stage they are in and how willing the bank is to work on getting rid of the property.
If you offer these motivated sellers some moving money, I am sure they will be willing to agree to a short sale to just get out of that albatross aroung their neck.
You can find these professionals online, in phone books, going to industry related meetings, etc. I have emailed, called, and sent direct mail to these individuals to place how I can help them and their clients fight in front of their face.
The sad truth in my opinion is that the lenders have been able to postpone the foreclosure on these properties knowing they will not be able to convert to long term modifications on a good majority of the laons they have done short term fixes with to date. It gives them additional time and cash resources to collect on these struggling borrowers before they foreclose on that borrower. They can look better to the FDIC and their board memmbers if they are collecting something....even if it is not the original amount.
Networking is not a once and done marketing approach, it takes time and repeat contacts over time to develop, build, and maintain these relationships.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125