How To Deal With Potential Sellers

Imagine being so far in debt that you thought you’d never climb out of the hole you’re in. You might have student loans that were going into default, two mortgages on a house that is falling apart because you’ve been too stressed and busy to maintain it and a car that’s already been repossessed. Your credit’s got to be in tatters, but you don’t know for sure because you’re afraid to check. You’d like to just crawl under the ground, and it’s all so embarrassing because, in the end, it’s your fault. Things overwhelmed you, and you – being human – let them slide a little too long. And now some guy has showed up at your door wanting to solve your biggest problem: your mortgage.

Would you let him in? In reality, probably not – at best he’s a bill collector, and at worst a con man who’ll take you for whatever’s left of your life. What you don’t realize, however, is that this guy really can take a HUGE load off your back: he’s a real estate investor that specializes in short sales, and if you’d let him in, he could have talked to your bank, bought your house before it was foreclosed, and eliminated a major portion of your debt. But you didn’t let him in.

As a short saler, you’ll face this attitude time and time again. You know you can help these distressed homeowners, but they are reluctant – and even suspicious – of your intentions! When you approach a property owner to offer assistance, you need to be aware of the distractions in their life so that you can ease their fears rather than adding to them. By demonstrating in word and deed that you are honest, forthright and in this deal for the right reasons, you can develop a reputation that will stand you in good stead with homeowners and lenders alike. But first you’ve got to get in the door.

• Be Professional. Dress nicely, speak clearly, and state your intentions immediately. Be prepared to answer questions and don’t become defensive if a homeowner questions your motivation – remember, these people have probably been avoiding even the most helpful collection calls, and have probably taken a lot of abuse from loan officers, etc., which is what you may appear to be until you’ve fully explained your prospective role in the relief process.
  
• Cultivate empathy. Remember at all times that these people are probably embarrassed. It’s not a good feeling to have to look at your problems and say (to yourself or someone else or both) “I didn’t manage my money. Period.” There are a lot of nasty statistics about people who lose their houses (they took advantage of “easy” money, they refinanced and refinanced with abandon, etc.) but for your purposes, these statistics matter only in that they show a lot of people make simple, human mistakes. Fortunately, you’re there to help them shed part of their burden and lift a load from their mind.
  
• Be Direct. Yes, you are saving these homeowners from foreclosure and further damage to their credit – maybe even from bankruptcy. But you’re not knocking on their door out of the goodness of your heart alone – you’re there to make a profit (a BIG one at that). So admit it. It’s to your advantage to work on their side to make the bank accept a deal as much as it is to theirs, so point that out. A homeowner that’s been dodging bullets and maybe reality for weeks or months will appreciate the fact that you’re not threatening them or promising them the moon – just a simple, feasible approach that won’t solve all their problems, but will alleviate a big one.

Once you’ve attained a level of trust with a homeowner, then the two of you can address all those uncomfortable things like proving (to the bank) that the house and the owner are lost causes. But these tasks will be much simpler if you’re working like partners, and to accomplish this, you must be kind and understanding. Bad things happen to people who are not bad, and smart people may sometimes do really stupid things. Help your homeowner focus on the fact that now they’re in the process of fixing their problems, and you’ll have a much more rewarding transaction. You’re definitely the “good guy” in this mix, but you’re probably going to need to prove it before you can save the day.

Our names are Neal and Cory Barnett and we haven’t always made a lot of money. We are two brothers who came from a large family raised in a small town in beautiful North Carolina. We came from a family of factory workers and farmers because that was about all there was to choose from that far out in the country. TO find out more go to www.discovershortsales.com