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In This Issue:
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Tis The Season To Give - And Give We Will!
Of course we know it is not the holiday season, but we are making it Christmas in August! Default Research is looking for the best foreclosure story of the year, so far. We know we have a lot more time in 2007, but we also know our clients have already helped hundreds, if not thousands, of families out of economic distress.
Your story and hard work helping a family out of financial distress could win you one month of free Default Research leads from one county of your choosing and a Default Research fleece to keep you warm during the winter months. Consider it an early Christmas present from Default Research! With foreclosures on the rise in most of the country, we have heard directly from our customers that they have been the first to approach homeowners in distress, and then to help them fix their situations.
We are asking you to type up your story of no more than 500 words and send it to joshc@defaultresearch.com by September 30, 2007. The winner will be published in the November edition of our newsletter, The Homestand. Of course, to verify the story you will need to e-mail the proper paperwork and receipts along with your entry.
The giveaway is just some of the big news we have this month. In this edition of The Homestand, you can read about and analyze the foreclosure statistics in Arizona and Michigan. Also included is an educational piece on how to approach homeowners in distress and an industry expert explains how you can make a very good living in the business.
Thanks again, happy reading and we are look forward to hearing your success stories!
Merry Christmas (in August),
Serdar Bankaci
President/CEO
Default Research Inc
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Arizona Foreclosures Increase 170 Percent In July 2007
Mt. Pleasant, PA - Foreclosures have risen more than 170 percent in Maricopa County from the same time last year, according to Default Research, Inc. (www.defaultresearch.com). The cities hardest hit by foreclosures in Maricopa are Phoenix, Mesa and Glendale.
With 1,931 Notice of Trustee sales recorded in Maricopa County, Serdar Bankaci, President/CEO of Default Research, said foreclosure statistics could go from bad to worse in Maricopa County and across the state. While the increases in foreclosures from July 2006 to July 2007 are staggering, the figures have not peaked and will continue to increase.
Several factors have forced families, many of whom bought their properties when the housing market was at its highest, to move into foreclosure. Bankaci said, "The subprime loans, increasing home inventories, and minimal home appreciation are three reasons forcing families into economic distress and foreclosure."
Default Research customer Greg Talbot (gregtalbot11@aol.com), who owns Shining Knight Investments in Arizona, has seen the foreclosure problems escalate first hand. According to Talbot, family after family in Arizona experienced the same situation; paying $300,000 for a house that was only worth $250,000. Now, those same families are facing foreclosure and Talbot is trying to come to their rescue.
Much to Talbot's surprise, as the foreclosure problem has worsened, the banks in Arizona have not been very cooperative. He said, "If the banks would accept our reasonable offers, we could start to fix the foreclosure situation in Arizona. But, the banks think the houses are worth more than they actually are, and that they can sell the property for a profit. Wouldn't the homeowner sell the house themselves if they could make money and avoid foreclosure?"
Talbot has found some investors willing to work with him on properties in foreclosure. He recently bought a home for $140,000 and sold it to an investor for about a $15,000 profit. The fact that Talbot is still able to assist his clients, even in a tough market, is exactly what Bankaci wants to hear. "Greg is a prime example of why Default Research is successful. Our fresh leads allow our customers to be the first to approach families in distress, we educate our clients about the foreclosure process and then they know how to help families."
In addition to Default Research leads, another reason - for Talbot's success is the short sale. He estimates that the only option for about 90 percent of the houses in foreclosure is the short sale. If the banks thought the same way about short sales, "more of my customers would feel relieved and be out of foreclosure and a bad situation".
Default Research is the national leader in foreclosure research. More information about Default Research can be found at its Web site: www.defaultresearch.com.
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Michigan Foreclosures Increase 40 Percent In July 2007
Mt. Pleasant, PA - There was the Big Three in the auto industry, and now there is the "Big Three," Wayne, Macomb and Oakland counties, in the foreclosure industry in Michigan. According to Default Research Inc. (www.defaultresearch.com), the three counties contributed heavily to the foreclosure rate increasing 40 percent this month from the same time a year ago.
Default Research reported that Wayne County had the highest foreclosure rate, with an increase of 45 percent, followed by Macomb up 35 percent and Oakland with the smallest increase at 20 percent. The cities that have seen their foreclosure numbers increase the most in the state are Detroit, Warren and South Field.
"With a large home inventory in the three big counties, and stricter credit restrictions, foreclosures are going to continue to increase in Michigan," said Serdar Bankaci, President/CEO of Default Research, the fastest growing foreclosure research company in the country. "Also, the news that import auto manufacturers have gained over 50 percent share in the U.S. adds to the financial and foreclosure crisis in the Detroit area."
With the auto industry sales sliding downward, there have been job cuts at alarming rates. In fact, Michigan's unemployment rate hit its highest level so far this year in June when it rose 7.2 percent, according to data released last month by the state Department of Labor & Economic Growth. Considering that the auto manufacturing industry employs the majority of the Detroit work force, the state said manufacturing job cuts in general was the main reason for the increase in the June unemployment rate.
"It is a very simple equation; no income, no chance to pay the mortgage, equals foreclosure problems," said Bankaci, whose company offers foreclosure leads that arrive two to three weeks ahead of the competition. "The average property going into foreclosure has an approximate market value of about $130,000 with about $127,000 of debt."
Default Research is the national leader in foreclosure research. More information about Default Research can be found at its Web site: www.defaultresearch.com.
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How To Contact A Pre Foreclosure Home Owner
"I call the homeowner and they say they aren't in foreclosure."
"The homeowner claims it is a wrong number."
"The homeowner doesn't answer the phone."
Does this sound familiar? Hopefully not, but if it does, we can help. Some of our new clients and people just starting in pre foreclosure investing have expressed to Default Research that they are being turned down too often by families in foreclosure. The problem is that many of the homeowners who are trapped in the embarrassing situation of pre foreclosure have been receiving collection calls for at least a year. Even though our leads are the freshest in the business, sometimes by the time our customers call these homeowners, they refuse to listen to anybody. With the right tools, this is not a problem. As an investor and person willing to help, you have to be ready to approach the homeowner in a more appropriate and effective manner.
Here are three simple suggestions to make sure you are able to get past the initial, and understandable, hesitation by the homeowner in distress:
1. Understand the foreclosures laws in your state. Is your state a judicial or non-judicial state? Is there a redemption period? How long does the foreclosure process take? The more knowledge about the process, the more trust you will be able to earn from the homeowner.
2. Get your facts straight about the homeowner by doing research on the person and the property. Do they have prior history of credit problems? Do they have one home or more? Is the home they are living in their primary residence? Lucky for you, the majority of this information is available for free through the vast resources on the Internet (see bottom of page for links). This information could be the key to helping the homeowner. For example, if the property going into foreclosure is a second home, then the individual is more likely to want to "get rid of it" as opposed to losing the home they live in. With all this information in hand, you come prepared with options to help the person out of this financial crisis.
3. Treat the homeowner with RESPECT. Even though you are trying to help the homeowner, they might not want to hear your solution to their problem. Maybe this person is tired of being offered help or, even worse, they have been scammed before and do not trust anybody in the pre foreclosure industry. Just understand, be "thick skinned," and most of all be respectful as to why they do not want your help.
By following these three steps you can overcome one of the hardest parts of pre foreclosure investing; the initial contacting and talking to the homeowner. If you have done your research, have solutions and are sympathetic, then your success rate of helping homeowners and also putting profit into your pocket will increase.
Below are some useful links:
www.netronline.com
www.intelius.com
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What is the MOST IMPORTANT MOMENT in a real estate investor's life? It is the 30 to 60 minutes you are with a potential seller trying to get them to sell at a 20% to 50% discount to their homes value!
"Imagine Being Able to Consistently Get Seller's To Sell At A 20% to 50% Discount!"
Wonder if this is possible? It is if you are totally prepared and have a well- done professional presentation during that critical moment.
Get More Information
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Pre-foreclosures: How Fortunes Are Made
--By Jeffrey Ringold
All rights reserved.
What is pre-foreclosure? Pre-foreclosure is the time period from which the bank gives notice of default, once the homeowner is approximately 90 days late in payments, to the time the house sells at auction. Pre-foreclosure is also the most crucial time in the foreclosure process. It is during this period that you as an investor stand to make the largest profits and can literally make thousands of dollars in months, weeks, days, or even hours!
The key to pre-foreclosure houses is equity. Simply put, equity is the difference between what a house will sell for (fair market value) and what is owed on the house. The whole concept to making money with pre-foreclosures is to buy a house for less than fair market valuing, thus immediately creating equity for yourself.
Here is an example of how this can work. Let's say someone owns a house with a fair market value of $200,000. Now let's assume that this homeowner has lived in the house for several years. If you consider that the property has most likely increased in value over time, while at the same time the homeowner has been paying down the mortgage on a monthly basis, it is fair to assume they owe less than $200,000 on the property.
For this example let's assume that the homeowner owes $160,000. This means there is $40,000 in equity in the house. As an investor, you would want to buy the house for $160,000 or slightly higher. If you can do this, you have a shot at making $40,000.
I know what you are thinking. Why would they sell the house for $40,000 under the market value? Right? Here is one reason why. If they sell the house to you, you can promise them a quick closing, thus stopping the foreclosure (losing the house at auction).
This will prevent a foreclosure from going on the homeowner's credit record. A foreclosure can stay on someone's credit for seven to ten years making it next to impossible to get another mortgage in the future. This is just one of many reasons.
So let's say they sell the house to you for $160,000. You can turn around and put the house back on the market for the $200,000 that it is worth. Once the home sells, you could put a whopping $40,000 in your pocket. Sounds pretty nice, huh? The best thing is there are ways to make similar deals with little or no money! An that is an example of how you can make money with pre-foreclosure houses.
In order to buy pre-foreclosure houses you first need pre-foreclosure leads. This is how you are going to get your leads. You are going to implement a powerful direct marketing campaign soliciting those who are in pre-foreclosure. How do you learn where to start looking?
One of the most valuable sources for pre-foreclosure leads is mortgage brokers. Almost everyone knows a mortgage broker. Maybe your brother is a mortgage broker. Maybe a good friend is a mortgage broker.
If you don't know anyone in the mortgage business, network a little bit. I am confident you will be introduced to someone in the mortgage field that can help you.
If not, that is OK too! You will just have to do a little more legwork. Go through the yellow pages and look for mortgage companies. Start calling around and introducing yourself. See if you can talk to the manager. If not ask to speak to a loan officer.
Ask them if they have someone in particular that handles foreclosure financing. They may or may not. Often times in mortgage companies, they will receive large volumes of calls from distressed homeowners.
These are homeowners who are trying everything to stop foreclosure. Most of the time, it is too late for the mortgage company to help the homeowner because their credit is already shot. At this point the mortgage company may refer them to what is sometimes call a hard money lender. A hard money lender is a lender that specializes in high risk loans. Often times, they are private investors.
This is where you come in. These leads are invaluable. They are homeowners that are exhausting their last options to save their home. What you do is have the mortgage company start to refer these deals to you. If you can get the names and phone numbers of these homeowners, you can contact them directly. More importantly, you can contact them when they are open to listening and expecting your call. If the mortgage representative that can't help them gives a high recommendation of you to the homeowner, they will be excited to hear from you.
About The Author:
Jeffrey Ringold is the author of 'How To Build A Massive Fortune Through Real Estate Foreclosures'. He is a licensed real estate agent and investor who has bought or sold over $12 million in real estate over his 7 year career. He is consulted by leading real estate developers and investors almost daily.
For more information on real estate investing and foreclosures, visit his web site at:
www.MassiveForeclosureProfits.com
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A FEW GOOD ADVERTISEMENTS!
You want to reach our strong, well educated clients - then you have come to the right place! Default Research is beginning to offer advertising in, "The Homestand." Not just any business though can participate - Default Research is looking for other companies that will improve our clients and help them excel in the foreclosure industry.
If you are interested, please
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