Sunday, October 18, 2009

Holding seminars to homeowners in pre foreclosure

In an earlier entry, I wrote about some different calls to action. As one call to action, how about asking a troulbed homeowner to register for a free seminar on avoiding foreclosure? I recently attended a seminar on fire prevention, and I'll share this experience to provide a framework for what can be a workshop to explore the alternatives to foreclosure.

My friend's mother recently got a mail piece from a specialist on fire safety. This professed expert on keeping families safe offered to foot the dinner bill at Red Lobster for a party of six in exchange for an open ear and listening to his presentation. The event was suppose to consist of couples, presumably because spouses participate in the decision making process. Sensing the sales sheen, I wasn't exhuberant about going but after some arm twisting, signed up for the free dinner/presentation. After my date backed out at the last minute, my friend Danielle agreed to tag along with me as my date for the evening.

The gentlemen hosting the seminar exchanged perfunctory greetings with everyone coming into the room and gave an overview with a powerpoint presentation, before our ordered entres came into the room and we savored our seafood with an educational video playing. So as to focus our attention on the video, the man leading the seminar distributed a quiz hinged on answers contained in the video. If we got the answers right, he said, he would buy us desert. So of course, everyone tuned into the video.

After the conclusion of our dinner and explaining the answers to the dinnertime quiz, we were rewarded desert and the host launched into a lengthy sales pitch for his suite of state of the art smoke alarms and fire prevention products. We were a captive audience - he just bought us dinner. For me, it was a little brutal and I wished I had just paid for dinner. But the reality was I owed him my undivided attention because he fed me a lavish meal.

Along the way, he set off a smoke alarm in a demonstration that it will get your attention if a fire occurs. "Will that wake you up if you were sleeping and heard it", he asked my friend, to which she said, "It just did". I found humor it it, he did not.

To make a long story short, everyone in the room signed up for an on-site consultation where he would come out to their home, evaluate their fire hazards and install his company's fire prevention equipment for hundreds of dollars. (Everyone but me, only because I was going out of town early the next day). If you made the appointment for the morning, you would be entitled to a free fire exstinguisher or propietary hammer that smashes windows without leaving sharp edges in the event you have to make an escape out the window. I don't know what happened on those appointments, but I'm guessing he closed all of them and made a lot of money, much more than what he had to lay out for the free dinner entres.

It occurred to me that the same model can be applied to homeowners that are falling behind on their loan payments. Get them all in a room and educate them about the choices they have available.

The fire prevention expert had one aim in mind - to sell his equipment. But this objective was disguised. He came across more of a concerned person that wanted to educate all of us on what we can do to prevent or escape infernos. As a marketer, I was dazzled by his prowess in establishing credibility, building trust, and then going in for the kill.

Only after making us feel good and educating us did he say anything about buying something. In the same fashion, you can present all of the options and arrange for a personal meeting to tour their home and pitch a short sale.

Shrimp anyone?

Telemarketing to troubled homeowners - Part Two

Hi there,

In my last post on telemarketing, my views were that a phone number is valuable as a part of a total marketing campaign to troubled homeowners, but in my opinion should be used in parallel with other marketing vehicles such as direct mail.

As standard practice, we populate phone numbers when available, and the opertive term is when available. The availability of phone numbers is constricted because of the federal Do Not Call registry, and over 90 percent of households have registered for the do not call list. Phone numbers are further limited by the fact that landlines are increasingly becoming obsolete as more people use mobile devices. We are able to generate a meaningful amount of phone numbers, however, if we:

1) Target a densely populated area, or:
2) Select a wider area of coverage (counties, states)

In other words, we can take a bigger pool from which to draw those limited phone numbers from.

Certainly, no responsible list provider would advocate looking these people up at your own volition by thumbing through the phone book, and I'm not advising that you do so. Calling someone that is on the do not call registry can lead to hefty fines. You can learn more at the FTC's Do Not Call website. Yet my job is to be a springboard and share with you what other clients are doing, and some of them are tapdancing around the do not call list and looking them up anyway.

I sold a list to a mortgage broker that put in bluntly: "I don't care about the do not call list. I'm not selling anything. I'm keeping them in their homes." This sentiment has been shared by other clients who feel that helping people move on is somehow beyond the perview of the do not call regulations. Another client says that when someone invokes the fact that they are on the do not call list, he says that the homeowner had entered their contact details on a website, thereby creating a prior business relationship. A set of clients, in the foreclosure capital of the world - Nevada - even goes so far as using a computer program that automatically looks up phone numbers on an internet directory. I don't know how it's done and neither do they (they had a computer wonk write some sort of scripted program). That client says that homeowners that are in over their heads have enough to worry about than pursuing do not call violations.

Again, though, I do not advocate skirting the do not call rules, and if you elect to do so, don't come to me to collect any fine leveled!

Feedback is most welcome - you can reach me at 607-759-5058 or via email at jim@homesteaddata.net

Telemarketing to troubled homeowners


Some of our clients are adament about only getting records with phone numbers. Others find calling homeowners dreadful or ineffective. There is a gaping difference between these schools of thoughts, and I want to check in and offer my thoughts on picking up the phone and offering your help to homeowners that recently defaulted on a mortgage payment.

I don't subscribe to either views but would consider myself in the middle ground. As I've layed out in earlier posts, it can take multiple points of exposure, or "touches" to land a client. To the extent that a phone call is a way to get through to a troubled homeowner, I think that a phone number is valuable - it's another useful utility to have in your toolbox. I do believe, however, that phoning should be used in conjuction with other marketing strategies and should not be used alone. It's my belief that a lead has to be warmed first, before they receive a phone call.

If a homeowner has had trouble paying their bills and they receive a phone call from a stranger offering to help them, their inclination might be distrust because they don't know you from a can of paint. Once again, a homeowner must TRUST you first, and one phone call might not be effective in building that level of trust. If, on the other hand, they've received mail pieces and you at least have name recognition, you are in a better position to call them. Once you pick up the phone and start talking to a distressed homeowner, they might interupt and say, "huh, who are you?", to which you can say "I'm Ben... I sent you a letter last week". "Oh, that's right" the homeowner responds. You have thier attention now, having more of a licence to call them.

That is not to say that blowing through a list of phone numbers will not yield any results. This is a numbers game, and our clients report that one deal will pay for the list and put a lot of money in their pocket. But to maximize your ROI and get the best results, I would advise harnessing the power of the telephone as a follow-up device and not as a stand alone marketing vehicle.

The exception would seem to be targeting spanish-speaking homeowners. I'm working with a successful client in Southern California that re-orders 2500 records every week or two. He requires only records with phone numbers, and only records with Hispanic surnames(Due to such finite criteria, we've had to expand the list coverage into other states) Him and has staff has been very successful, and I'm guessing it's because they can speak the homeowner's language and establish an instant rapport from a cultural standpoint. I do not think that the success of this 100% telemarketing campaign is typical based on feedback I've received from other people.

I'll end with a word of caution. First, the goal of a phone call should be to get an appointment and NOT attempt to seal the deal over the phone. Don't negotiate over the phone but instead, save that for a face-to-face meeting.

In my next entry, I'll expound on using the phone to connect with troubled homeowners. Till then, A-B-C - Always Be Closing! :-)

Saturday, October 17, 2009

Sample ads


I came across this ad. I like the photo of the distressed girl because it draws the reader in to learn more about her plight, and puts a human face on the hardship that a homeowner is facing. I also like the benefits citied. (Read my post on the difference between features and benefits)

Friday, October 16, 2009

Crafting a clear call to action


Every good mail piece has a clear call to action - it tells the prospect what to do next and creates the sense of urgency to act NOW. This can be pick up the phone, fill out a response card, go to a website, etc. While the call to action is often overlooked, it is critical because the only objective to your marketing is to get someone to respond, period.

We've all received pieces of mail that want us to do something. And they're typically covered with act now, supplies are limited, this is a limited time offer, this offer expires soon, this is a once in a lifetime opportunity, and so on. Why do people still do this? Everyone knows that the limited time offer is probably twenty years. The answer is because it works. Infomercials are masters of this principle. Call now and receive a discount. Call in the next 10 minutes and receive a free gift. But wait, call right this second and you get another product, a 59 dollar value, absolutely free.

Use Action Words. Hurry, you must act now. And so on. These words are good motivators and get people moving. Troubled homeowners need to know the consequences of doing nothing. You would think that it is self evident that if you default on mortgage payments, the bank will foreclose. It is not. Distressed homeowners need to be reminded that they will lose their home if they do not work with you. A staggering number of homeowners in pre foreclosure are in denial. They think that their problems will dispear, or a large sum of money will somehow be deposited in their bank account. I once read a statistic from Freddie Mac that up to 75% of homeowners do not even make contact with their lender. It is critical that you outline the series of events leading up to the Sheriff coming to their door.

While the most common call to action would be to get a troubled homeowner to pick up the phone and call for a consultation, there are other possibilities.

I believe that there may be people that want to pick up the phone to call but they are just not quite ready yet - they need to be nurtured a little bit before they are ready to make that next step. To "warm" them a little bit, consider offering more than one call to action. Of course you want them to get hooked and pick up the phone. But for those people that aren't quite ready to trust you, how about:

"Call or write for a free report on your credit reporting rights" or
"Call or write for a checklist of steps you can do when you receive a certified letter from your lender."
"Email me a free report on new legislation..." etc.

By using these types of calls to actions, you will establish credibility as an expert in your field, which in turn builds trust. You will also be providing valuable information to homeowners who may need the information but aren't ready to call you - yet.

Of course, you can drive them to a website. I'm somewhat nervous about this because simply inviting a distressed homeowner to a website doesn't mean anything will be accomplished. "Visit my site" is a weak call to action because it does not give a reason to go there. It's possible that you can pique the homeowners curiosity and they will visit the website. But then what? They've done what you asked them to do, but what does it result in? They can go to your site and say, "that's a pretty site with some good information". Unfortunately, that does not lead to more money for you.

A better call to action would be "visit my website to register for a free seminar" or "visit my website to download a white paper", etc. The point is to spell out specifically what the homeowner should do next. If you are volunteering something of value, I believe that there should be a reciprocation, a give and take. Before they have access to your free report or checklist or whatever snippet of information you are providing, prompt them for their contact information in a web-based form. Once they fill out the form, they can move onto what they came for. This way, you can measure your direct marketing results and more importantly, have the homeowners email address to correspond to. You might consider making a questionnaire, but caution should be exercised because by asking for too much information, you can lose the web visitor.

The envelope and the outer package


I had the opportunity to bounce some ideas around with a long time client from Virginia this afternoon, and we came upon the subject of changing up some different outer envelopes.

The human brain responds to variety, so I think that things should be changed up. I like the idea of experimenting with different types of envelopes or colors, so long as the results are tracked and measured.

How about sending a dimensional package to homeowners that recently defaulted on their mortgage payment? There's cylinders and mail packages of many forms that your message can be placed in. Sure, you have to put a finger on expenses, but the increased response may well be worth the extra postage. While mail packages can come in many different shapes and sizes, they share one thing in common - they have close to a 100% open rate. Think of the excitement of children opening presents under a Christmas tree and it's easy to see why.

When I was the sales manager for a mailing list company that provided data on new homeowners moving in, I recall seeing a mail piece that was sent by a dentist in Littleton, Colorado. They sent a manilla folder to every new homeowner that moved around their dental practice. In the subject tab of the manilla folder, it said "Dentist". The homeowners would open the folder to find information on the dental practice, an offer for a free cleaning, and - get this - a toothbrush with their contact information. How clever was that? Sure, the mail piece was expensive but the office manager reported an astronomical response.


I asked our client from Virginia if he used postcards in his direct mail campaign and he expressed his opposition to post cards because they are in plain view for other people to read and potentially subject homeowners to humiliation. Much more effective, he said, was a letter, a sentiment shared by a gentlmen we work with in Tenesse that claims sending postcards puts the homeowners "laundry on the street", a transgression they will never forgive you for.

It's ironic. I have always been an advocate of post cards not only because they are cheap to print and cheap to mail, but because they stare homeowners in the face - they don't have to be opened like an envelope. Yet for this very reason, it is possible that other unintended eyes can see the postcard, if only the mail carrier.

I don't think that this is a huge problem, but one to be mindful of. I've know people that have had good results sending post cards to troubled homeowners. I do think, however, that discretion is needed. You do not want to alert other people to the situation that a troubled homeowner finds themself in. If using a postcard, it might be prudent to avoid using any direct knowledge of the homeowner's plight and instead use the verbiage, "if you find yourself in this situation, I can help", the operative word being if. In this way, there is no indication on the post card that the homeowner is actually falling behind.

If you are mailing something in an envelope, I would not advise placing any teaser copy on the outer envelope that makes any mention of foreclosure. If there is any temptation to put a big, bold "stop foreclosure" sign or anything similar on an envelope that highlights their hardship, I would advise to resist the urge. Think about it. Homeowners that have defaulted on their mortgage payment are looking for someone that can offer a solution to their problem, not create another one! They are looking to relieve stress, not increase it.

Sample Direct Mail Letter


Here is an introductory letter I came across that offers solutions to problems with real estate loans. I like it because there are no bells and whistles - it's straight down the middle. This person portrays themself as an advisor with several options on the table. I think it is much better to educate homeowners on the array of options available to them (Forebearance, refinance, Deed In Lieu of Foreclosure, etc ) than to only pitch a short sale, because the message you send is that you have the homeowners best interest in mind. It can't be emphasized enough - before a homeowner allows you to work with the lender, they have to trust you.

As I explained in an earlier post, repetition produces the best results when offering your help to homeowners that have defaulted on their mortgage payment. If the first letter doesn't generate a response, a second and third letter is in order. Subsequent letters should escalate in tone and urgency by explaining the consequences of doing nothing, and stress the magnitude of what the homeowner will experience if they chose to go into hiding.

Sample Letter

Dear Bob/Sally,

My name is _______. Please do not be embarrassed, but I offer ethical and compassionate solutions to problems with real estate loans. My initial consultant is free. I can often refer you to other pre screened, ethical professionals in the fields of refinance, bankruptcy, or credit management.

Other times, I might be able to arrange for a quick and discreet sale and leaseback of your property, allowing you to preserve your credit, your reputation, and your day-to-day affairs. In some instances, people want to sell their property and make a clean break - moving some place else in order to begin building better times and better memories.

Whatever your goals, you can rest assured that I am not just another opportunist trying to make money at your expense. If I can help, and we can both come out ahead, then we need to work together. If I can't help, then I can save you lots of time and anguish by referring you to people who can assist you.

Please take that first step of putting yourself back in charge of your life - contact me for some additional information and possibly a personal consultation.

Sincerely,

Your Name

For the most personal impact and readability, I highly reccommend handwriting this letter. See my earlier entry on creative ways to get your mail piece read.

Until next time, A-B-C .... Always Be Closing.

Thursday, October 15, 2009

Using direct mail and handwriting your correspondance



Based on the feedback I've received from our clients that are contacting homeowners in pre foreclosure, direct mail has been the best marketing vehicle for more short sale transactions. I say that with a few caveats.

First, I'm a firm believer in the omnipresence of marketing. If I had to chose one lone method to advertise to troubled homeowners, it would be direct mail, but it is more effective when used in parrallel with other communications. For example,

Day 1: Send a letter to Bob and Sally, who are falling behind on their loan payments.
Day 5: Follow-up with a phone call.
Day 10: Send a post card to Bob and Sally.
Day 15: Having established name recognition, take the personal approach and knock on their door.
Day 20: Send out a follow up letter.

You can use synergy when using direct mail in conjuction with other techniques. In other words, two plus two isn't four. It's five.

Secondly, I have seen campaigns flop because the mail piece looked too salesy or did not grab a reader by the eyeballs in a couple seconds. Savvy consumers have a very brief attention span and as a marketer, you have a small window of opportunity to command their attention.

Whatever you send to homeowners that recently missed a mortgage payment, it has to be opened to be effective. Anything that remotely looks like a bill will be chucked. Especially in competitive markets, anything with laser jet labels may not get opened either, because it looks like an advertisement or a letter from a bill collector.

If you want to send a letter to a troubled homeowner and you want a guarantee that it will be read, how about handwriting it? There is nothing more personal. In today's world of technology, people don't get something in the mail that is handwritten. When's the last time you did? Was it Uncle Tom wanting to wish you a Merry Christmas or Happy Birthday? Or was it when you received a wedding invitation? Happy moments of correspondence, right? Handwriting a letter offering your help WORKS and works REALLY well. Here's 3 techniques to harness the power of the handwritten word....

1. "The Yellow Letter" -- this is a very powerful method of getting your direct mail opened. Handwrite your foreclosure marketing message in a blank sheet of paper. Here's how. Put a legal notebook pad BEHIND the white sheet of paper so that you can see the lines through the blank sheet of paper. Now take your black pen and handwrite your marketing message on the white sheet of paper. Leave the first couple of lines blank so you can write the name. Go to a copy center and make copies of your handwritten letter, but print it onto yellow legal notebook paper--the kind that you rip of sheet by sheet. Now you have hundreds of handwritten letters. All you do is then write the person's name at the top of each sheet such as "Dear Mary" and it will look like you handwrote the letter to the person.

2. Handwritten Postcards -- Get a blank sheet of white 8.5" x 11" paper and face it in landscape mode. Divide it into four quadrants equally. That will be the size of each of your postcards. What you do is to handwrite your message on each quadrant on the paper. That will be your foreclosure marketing message! Leave space at the top to write a name if you'd like. If you plan to put information on the BACK of the post card, get another blank sheet of paper and divide into 4 quadrants and handwrite your message as it would appear on the other side of the post card. Don't forget to leave room for the address and the stamp on the other side. Then take these two sheets of papers to your office supply store and have them photocopy these two sheets of paper into a hard cardstock, bright-color pastel colored paper and that will serve as your post card. For postcards, you can actually stick labels onto the other side since the postcard doesn't require the person to "open up" the mail.

3. Handwritten envelope -- do you want to triple your response rate? Handwrite your envelopes and put a first class mail stamp at the top. People WILL open up this mail. Why? Because it looks like it came from Uncle Bob. For best results, you can hand write the return address as well. You can use a regular envelope or an "invitation-sized" envelope for an even more powerful effect. Make it look like they are getting a birthday or wedding invitation. I have heard of people getting double digit response rates with this method.

This takes some extra time, but it is well worth the extra response. No one says that YOU have to be the one to do the handwriting. Whether it is a high school kid looking for a few extra bucks, a stay at home mom or someone retired that can invest a few hours handwriting, there are other people that do this cost effectively. How about putting an ad on craigslist? Especially in the down economy, there is no shortage of people that can pick up the pen.

Get your foot in the door - literally


Hi, and thanks for reading. In my last blog, I said that it is paramount to establish trust with homeowners that are in pre foreclosure. To do this, it's important to put your message in front of troubled homeowners on a regular, repeated basis, and answer their fundamental question: WHAT'S IN IT FOR ME? Focusing on your credentials and features are not enough. Instead, a troubled homeowner has to know that by working with you, there are emotional benefits such as the ability to sleep peacefully at night and the relief of letting go of the ton of bricks on their shoulder.

Now I'll delve into the topic of how to approach these troubled homeowners, whether by mail, phone or in person.

In this entry, I'll explore door knocking. It takes a special kind of person to knock on doors, but that talent can yield tremendous dividends. A regular client, a Century 21 broker in California, is adament about dispatching his associates out to the homes in person. "We have only one shot to get through to these people", he says, "and we don't want to blow it."

In short saless, nine-tenths of the deal involve negotiation. You'll have to make an emotional connection with the parties involved to close the deal, and what better way to build that rapport than to deliver your message of a fresh start in person?

It is said that consumers are bombarded with over 3,500 advertisements a day in one way or another. It is difficult for even the best marketer to cut through that much advertising clutter. With so many ads offering to save a homeowner from foreclosure, a realtor or investor that takes the personal approach by taking a troubled homeowner by the hand and walk them through their alternatives will be a winner.

How many radio or newspaper advertisements can pull a football fanatic out of his chair, during an exciting football game, to see or hear your advertisement? The answer is NONE. One-on-one door knocking is powerful and effective because it searches and finds your prospect and delivers your message face-to-face. No other marketing medium has that impact. How do you harness that power? Step right up to their front porch, take a deep breath, and knock on their door. When the owner pokes his nose out and asks you what you want, you have to know what to do next.

Getting Inside

(1)Have a script prepared. First impressions are especially important when talking to a troubled homeowner because of their emotionally charged hardship. You have a small window of opportunity to introduce yourself as someone that genuinely cares about their situation. It's like theature. To create the emotional excitement of the audience, the actors are scripted. In the same way, to create an emotional connection and build trust, you should be armed with a script. Many investors mistakenly wing the first words out of their mouths in a pre-foreclosure deal and never recover. I'm a firm believer that even the best salespeople should have a script.

(2)Ask to come inside. Many novice investors erroneously think that the deal is going to be made right on the porch. A troubled homeowner will work with you only if they trust you. If you launch into your pitch on their porch, you will only convey that you are a slick salesperson that wants to profit from their loss. After the preliminary introduction, try to face them in the place they feel most comfortable – the kitchen table.


Making Conversation

Talk for a few minutes. It's important for the homeowner to view you as a person, not as an investor. Share some information about yourself and ask for the same in return, so that it doesn't feel like some kind of akward "first date."

Avoid using the term 'foreclosure' at all costs. "I noticed that you weren't keeping up with your payments" or, "I saw that you were late on your mortgage" is a sure way to get booted. The key is to not imply in any way that the pre-foreclosure is the homeowner's fault. If the homewner feels that you are not on their side, they will not trust you. A better approach would be to say that you noticed in your research that they were having problems with their property, or that the bank may foreclose on the property.

Tips for Good First Impressions

1) Don't hide your face. When a homeowner looks to see who's knocking, you'd better look non-threatening. Leave the sunglasses and baseball cap in your car, and pull long hair away, too.

2) Keep your hands in plain view.

3) Be casual in your dress. No suits or bling like expensive jewlery. The homeowner does not want to be reminded that as an investor, you stand to profit from selling their home. A Rolex or flashy car will only stress to them that you will make money from their hardship.

In short sale marketing, it's critical that the homeowner likes you, knows you, and trusts you. Until then, the "deal" is secondary.

As a final thought, I believe you should have something to leave if the owners are not home. Door hangers are cheap to print, and are screaming to be read.

Feedback is most welcome. Email me at jim@homesteaddata.net or call me at 607-759-5058.

Gaining the trust of troubled homeowners



Jim Rutkowski here of Homestead Data. In my introductory post, I ended by saying that investors will be successful if they help troubled homeowners during the tumultuous period of hardship they are going through. Yet how do get a troubled homeonwer to work with you? The answer is they have to trust you. How is trust developed?

First of all, trust and rapport can be established through repetition, which builds familiarity and in turn, credibility. The reality is marketing has never meant to be, and should never be a one-time shot. It may take several points of contacts, or "touches" to establish credibility. One mail piece, one phone call, one knock on the door may not be enough. People respond to repetition, like a parent that finally gives into repeated requests from a child that begs for a piece of candy or a new toy. Publisher's Clearing House is successful because they understand the principle of repetition through repetitive mailings over time. The law of repetition states that any marketing communication is most effective when it is repeatedly brought to the attention of your target market.

Secondly, in order to gain the trust of troubled homeowners, you must make an emotional connection with them. You will not be initially persuasive to homeowners presenting a spreadsheet with numbers, because as world renowned sales trainer Zig Ziglar said, "People buy on emotion and justify it with logic." The logic only comes after a homeowner opens up and makes the decision to work with you based on their emotion, or gut feel.

To make this emotional impact, it is helpful to think in terms of benefits, NOT features. If you buy a $500K Ferrari sports car after you make a ton of money in the short sale business, why will you buy it? It won't be because it is made by the best European car designers, or the hand-made Italian leather seats and expensive coverings. Those are all features. Rather, you will buy the Ferrari because of its benefits... you'll buy because you'll turn heads by having the most famous sports car in the world, you'll be recognized as someone with style, flair and class, and be envied by your peers. The diamond industry is masterful at selling on the benefits. Think about it - why would someone want to buy a rock from the earth? They wouldn't. They will buy a rock for the moment a woman looks deeply into their eyes, a moment that seals their love and union forever. All benefits are emotional. Alarm systems sell because people want to feel safe and secure. Ipods sell because people want to feel a sense of belonging by taking part in a powerful trend.

It's not about you or your realty, or even your expertise. It's about them. How you will help them solve their problem, how you will make their lives better, and most of all, how you will make them feel good.

"We helped 28 clients this month avoid foreclosure" is a feature, not a benefit. "We are a member of the better business bureau" is another feature that will not win the trust of homeowners that are headed for foreclosure.

What then, would be an example of benefits? You can:

- Get them from underneath this financial nightmare
- Allow them to sleep soundly at night for the first time in six months
- Allow them to get the best financial solution that's legally available
- Help them move on to build better memories
- Return to their normal day-to-day routines
- Etc.

You must first solve homeowners problems on an emotional level to build trust and rapport so that a homeowner agrees to work with you. Citing your credentials are fine, but it is the emotional connection that will win you over. Once you describe the benefits of your service to homeowners, they will come back to your credentials later.

Jim Rutkowski is the managing partner of Homestead Data, a company that is dedicated to providing timely, accurate, easy to understand data from the credit bureau on homeowners that are 30, 60 or 90 days late on their mortgage payment. Armed with this data, realtors and investors can be the first and the only one to offer their help, and have months to resolve foreclosure situations. Contact Jim at 607-759-5058 or by email at jim@homesteaddata.net.

Sunday, October 11, 2009

Introducing my blog on pre foreclosure marketing













Hi all,

Jim Rutkowski here and I talk to a lot of realtors and investors day in and day out, and one common question I'm asked is what the best way is to market to homeowners in pre foreclure. I've entered the blogosphere in an attempt to answer that question.

I don't profess to know your game better than you do, but perhaps I can be a springboard of information. Having talked to so many real estate professionals and seen so many marketing campaigns, hopefully I have a good antenna to know what works -and what doesn't work.

I've rarely talked to a realtor or investor that truly enjoys doing short sale transactions. Yet short sales are the realty we're faced with today. They are simply unavoidable. The finger can be pointed to many forces and factors, although I don't find it productive to assign blame. Instead, I want to avail this forum to focus on profiting in distressed homes and help homeowners with a dignified solution. Sure, we're all in it to make money, but if we can help troubled homeowners preserve their day-to-day affiars, their credit and a sense of normalcy, all the better.

Owning a home is a wish envisioned by almost every couple in America but actually acquiring one can be either a dream come true, or a nightmare in disguise. Affording that home consists of having the credit rating to find a good loan to purchase it and enough financial where-with-all to make the monthly mortgage payments on time when the due date comes. If a homeowner misses one payment and get behind, it is hard to play catch-up and some never do. The unthinkable happens and they find themselves in default on both the loan and on the mortgage.

Imagine a homeowner has defaulted on a home loan and they are worried that the lender is going to come to take their precious home away and leave them with no hope of closing the loan. The spouse is staring at them to do something, the kids are crying, worried that the Internet connection is going to get cut off and the homeowners are looking into a pile of bills that seems to just keep getting bigger and bigger

This grim set of circumstances is all too common, for varied reasons. The number one reason many consumers default on their loan is unexpected expenditures, which happen suddenly, or an unanticipated emergency. More people lose their homes because of illness, the loss of a job or marital discord than any of the other reasons. Of course, this problem has been compounded by borrowers aggressively seeking less than perfect loans and homeowners that have used their home as bottomless piggy banks. According to this REUTERS article, Housing risks still lurk even as buyers return, the housing market will likely decline further due to continued pressure from adverse economic forces.

Regardless of the varied reasons for hardship or what has set the stage, a homeowner that has recently defaulted on their loan payment is in a very stressful prediciment. Oftentimes, they cannot see the forest from the trees.

The adept investor that can empathise with thier plight and help them through this difficult period in their lives will undoubtedly be successful.