files a notice of default at the county recorders office but before the foreclosure sale takes place.

If you are able to develop a rapport with the owners and make a foreclosure options presentation to them, you will have a good chance of helping the owner in distress as well as making a good deal for yourself. We present the following guidelines to help you when dealing with the owner.

Guidelines

1. Know the Area Make sure you are familiar with the properties that have sold. In other words, know the comps. Get sales information from title insurance companies.Talk with neighbors of the owner and to local real estate agents. Make sure you know value in your target area. (See Chapter 8 for a complete discussion on value.)

2. Inspect the Property Ask the owner to show you around the property. Take notice of faulty conditions or red flags, which may indicate problems with the property. Use a clipboard and write down your observations. This will serve as a memory aid for you. It will also show the owner that you are serious about the property.

3. Arrive with a List of Questions Dress appropriately for the meeting. Dont overdress or arrive in too fancy a vehicle. Have a calm demeanor. Dont seem overly anxious to make a deal.Treat the owner with respect, diplomacy, and understanding. Listen more than you talk.

Take the time to develop a rapport before you get into your questions. Be prepared to discuss details with the owner that will make it clear what the owner needs financially. In other words, discover the owners true motivation and needs. Ask the questions in a friendly manner.

4. Avoid Making Any Proposals There are no oral agreements in real estate. At this initial meeting you are gathering information about the owner and the property. Any proposal you make should be in writing and done when all the decision makers are present. This may occur immediately after you have inspected the property or at a later scheduled foreclosure presentation.

5. Use Your Foreclosure Options Presentation For best results, follow a written outline when discussing the owners options. We rec-

ommend setting up an evening appointment for your foreclosure options presentation.

Your goals are to have the owner understand the foreclosure process, clearly see the owners options, recognize your knowledge of the subject, and put together a mutually beneficial contract.

Setting an Appointment with the Owner

When setting the appointment with the owner for the foreclosure presentation, plan on only one presentation per evening. This is important because some owners will take longer to make a decision than others. In circumstances where you have planned appointments too close together, each one will be rushed, and opportunities to acquire properties may be missed.

No appointment should be set unless all owners will be present. If you get to the appointment and one of the owners cannot be present, reschedule for another time. Otherwise, you are wasting your time.

It is important that the owner feels relaxed and is able to discuss their situation with you at the stated time. Accordingly, as with any real estate contract presentation, the time for the appointment should be at an hour when distractions such as kids and favorite TV shows are not competition.

Lets turn our attention to your initial phone conversation with the owner. The purpose of the conversation is to set an appointment with the owner. At this appointment you will make the foreclosure options presentation.

Phone Appointment Script Hello, my name is , and I

am calling because I may have an interest in buying your property. Are you the owner? What is your name?

Wait for their response. If they are not the owner, ask to speak to the owner.

According to public records, I understand that your loan may be in trouble, and that you might be able to use some help. Is this a convenient time to talk?

Wait for their response. If they say no, ask when would be a good time for you to call back.

As I said, my name is , and I am a private real estate investor who makes it my practice to understand the foreclosure process

and how to avoid it. My interest in your property stems from the fact that I can often find a good investment by talking to people who have a problem loan.

I sometimes find that they have a desire to sell their property at a price that will save some of their equity, help them protect their credit, and, at the same time, I may find a property to acquire.

I have developed a presentation that will show you your many options to avoid foreclosure. I recognize that nearly 9 out of 10 owners will be able to save their property with this information.

I am willing to share this information with you without cost or obligation. The properties I do buy have made it worth my time to help many property owners such as yourself avoid foreclosure entirely. Do you have an interest in finding out about the eight options you have with regard to your pending foreclosure?

At this point you have aroused the curiosity of the owner and setting the time for an appointment should almost be automatic.

I have time on my schedule tonight or tomorrow night. Since time is of the essence for some of these foreclosure options, would tonight or tomorrow night be better for you?

Wait for their response.

Would seven oclock or eight oclock be better for you? Wait for their response.

After you have set a time ask this last question: Do you have younger children at home?

Wait for their response. If the say they have younger children, say:

I recognize that it is important that parents spend quality time with their children, and I do not wish to disturb that. Is there a time, perhaps after your children have gone to bed, that we can talk?

Such consideration will make an impression on the owner, show great respect for their family, and assure you of an uninterrupted appointment.

At the Appointment

Your purpose at the appointment is to create a mutually beneficial solution to the foreclosure problem for you and the property owner. After you have no more than five minutes of chitchat conversation during which you are building rapport with the owner, you should begin your foreclosure presentation at the owners kitchen table.