Foreclosure Owner Lists
Foreclosure owner leads are some of the best types of prospecting lists for real estate investors and other industry professionals and businesses. Where do you get lists of foreclosure owners? How do you connect and create more deals with them?
Foreclosure is one of those big stressors in life. There is always a foreclosure and default rate, even in good economic times and growth phases of the real estate market. While foreclosure is a tough time for property owners, it is a time of great opportunity for real estate professionals to step up and help others.
While most instantly relate foreclosure to failing to pay mortgage payments on time, there can be a wide variety of reasons that homeowners and commercial property owners fall into foreclosure.
- Lender fraud
- Loan servicer mistakes
- Past due property taxes
- Property condition and condemnation
- Eminent domain seizure
- Forced sales by the IRS
- Enforcement of due on sale clauses
- Balance acceleration
- In ability to refinance a balloon mortgage on maturity
The Why, Who & What of Foreclosure Leads
Foreclosure leads provide professionals and businesses with lists of contacts who are in some stage of foreclosure. They may also include pre and post foreclosure leads as well.
These lists can be highly useful for:
- Bankruptcy attorneys
- Real estate attorneys
- Private lenders
- Note investors
- Debt consolidation firms
- Real estate agents
- Real estate investors
Property investors can use foreclosure lead lists for a number of investment strategies, including:
- Finding wholesale property leads
- Sourcing fix and flip opportunities
- Acquiring rental properties
The expectation is that investors can create triple win situations with these leads, helping the distressed borrower, lender whose capital is on the line and then helping future owners or tenants with a good deal on housing or a new commercial property.
Types of Foreclosure Leads
There are several types of foreclosure leads to choose from.
These are leads on properties which are about to enter the foreclosure process. They have often recently become delinquent, but have not yet been thrown into the legal foreclosure process. These leads are often prized as they have accumulated less fees and back interest.
These would typically be properties listed for sale on which lenders have already agreed to a short sale, and perhaps even a short sale price. They may be on the MLS, off market pocket listings, on on the books of banks and other lenders.
These are properties in some stage of the foreclosure process. They may have just received notices of default or could have been languishing in foreclosure limbo for years. They may still be debts being actively pursued by lenders, or lender may be just waiting for the optimal time to push for an auction date or be waiting on a judge to provide it. They could still have a lot of equity, or have substantial fines and back interest accumulated.
These are properties scheduled for real estate auctions. That could be weeks, months or just hours away. Auctions may happen online or live at local courthouses, unless they are sold or cured before hand.
These are properties which have already be taken over by creditors. They may not have received bids at auction, or could have been turned over to lenders prior to having to go throw the full foreclosure process. Banks, credit unions, funds and private lenders can all hold these properties.
Sources of Foreclosure Leads
There are a number of ways to source foreclosure owner leads as well.
The DIY Approach
Investors can create their own funnels to build their own lead lists online and offline. You can drive neighborhoods and use private detectives to hunt down owners of vacant properties. Or use Facebook, landing pages and opt-in magnets to get people to join your list online.
Go to the Bank
Going to banks or lenders and asking if they have any properties or non-performing loans they will sell is a commonly promoted way to find these leads. In reality it can be a lot more work and less fruitful than often made out, it is is an option.
This information is frequently found in public records. The challenge is finding the data quickly and at scale. You can go down to the records office or online yourself, it just may not be the most efficient process.
Lead List Providers
There are a variety of business lead list providers out there which sell all types of data and lists. These can vary widely in price depending on how generic lists are and how many thousands of contacts you order. They may run under 10 cents a name to over $100.
Real Estate Lead Software
Real estate lead software is another source which allows investors to go in and pinpoint their ideal leads, based on their custom criteria. These leads can be mailed to called, and marketed to in a variety of ongoing mediums.