Marketing Effectivley Prior to Lis Pendens
Frequently I will get inquiries about how to market borrowers that are past on their note, but have not received an official Notice of Default. The primary issue is NOD lists tend to have a low conversion rate. The cause those lists tend not to convert well is because once the client data goes public they are overloaded with telephone calls and direct marketing. The second strongest issue is that many times once an NOD has been published, the client might have already vacated the house.
The pleasant news is that there is a way to reach the borrowers when they are only thirty, sixty or ninety days late on their mortgage. We obtain this pre-foreclosure information from the credit bureaus because deed lenders will report to the authorities when a client misses their mortgage payment. If you reach a client at this stage, they become perfect prospects for a short sale. The clients have just missed their second or third mortgage payment and they need to make a decision before long if they want to be able to spare their property and credit rating. It is up to you to facilitate these borrowers to make that choice and show them the benefit of a Short Sale or Loan Modification.
