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! :-)

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)

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.