Newsletters

Over the last several months, Default Research has received media requests from some of the major media outlets around the world.  Since every good story needs several sources, the reporters generally ask us for clients in specific areas who want to tell their stories.  Whether you are an investor, a banker, lawyer, or simply looking for a home, the media wants to talk to you!

We want the good work of our clients to be highlighted in the media by outlets such as CNBC, The L.A. Times, and Best Life magazine.  If you would like to be a part of our growing team of sources, please fill out the form below and let us know.  Of course, before we offer your contact information to any reporter, we will check with you first to make sure you have the time and are interested in participating in that particular story.

We go from your stories to our articles and this month’s newsletter.  Our July issue is packed with statistics from our major markets as you learn about the foreclosure situation in Detroit, Seattle, and all over California.  Also, we talk so much about pre-foreclosures; I want to talk about buying a property at auction. This can be a gamble for even the best investors.  I will offer my keys to buying a trustee sale and how you can do a partial inspection from outside the house.   

We want to get to know you better and we also want other people to learn about our clients.  We know that, with our accurate and fresh leads, you are in a unique situation to be able to help families in distress.  We want to put the spotlight on you! 

Buying a property at auction can be highly risky, but often highly profitable.  That is why the idea of a trustee sale is so attractive to many of our clients.  I have heard many success stories regarding buying a trustee sale, and all of those stories include the fact that the hardest part of the process is doing your due diligence. 

Due diligence means researching the property before the sale as much as possible.  Begin by determining what is the fair market value, debt, and repair costs for the property.  Some other items to take into consideration are that, in most cases, you cannot inspect the property before auction; therefore you may truly not know the current condition of the property.  Another consideration is to find out who lives at the property and if is the occupant is a homeowner or a tenant.  It is a good idea to steer clear of rental units because you may end up inheriting a lease that is unprofitable.  It makes sense that, if it was a profitable lease, the property would not be in foreclosure, right?  The above are some of the factors that will help determine if the home will provide a profit or a loss on the sale

Now that we identified the major concerns when buying at trustee sale, let’s discuss how to overcome the major issue which is the basic inspection of the property before the sale.  By viewing the property from the street, you can do a basic inspection of how the property has been maintained outside.  While it does not give a clear indicator of the condition inside, it will provide a good idea of the situation inside the house.  However, you will need to build a risk premium into your purchase price.  The general rule of thumb is that one should pay at least 15 to 20 percent below market value.  This creates a cushion for the unexpected you might find inside the home.

Luckily for our clients interested in the trustee sale, Default Research provides a majority of this information for investors.  While there is risk involved that any investor can’t avoid, we do put our clients well ahead of the high risk, high reward game.

Default Research, the premier provider of foreclosure real estate data in Northern California, is reporting that Notice of Defaults and Notices of Trustee Sales in the area climbed 21 percent in the second quarter, compared to the first quarter.  According to Default Research (http://www.defaultresearch.com), the northern California region as a whole had 4.34 percent of households entering some sort of foreclosure and that is over twice the national average.

“In the past year, northern California has seen median home prices decline by almost 25 percent,” said Serdar Bankaci, founder of Default Research.  “Home inventories seem to have steadied in the past six months.”

The worst foreclosure numbers in California came from the state capital of Sacramento with 11,470 Notice of Default & Notice of Trustee sales in the second quarter of 2008. 

The three hardest hit cities were Sacramento, Stockton, and San Jose.  On the flip side, San Francisco was the least affected by the foreclosure crisis with only 601 Notice of Default and Trustee Sales in Q2 and only .56 percent of homes entering into some stage of foreclosure.

Below is a unique and accurate local look at how the Default Research foreclosure statistics affect your area: 

Santa Clara Foreclosures – Hardest hit cities are San Jose (1291), Gilroy (109), Milpitas (68), Santa Clara (54), and Morgan Hill (53)

Alameda Foreclosures - Hardest hit cities are Oakland (626), Hayward (400), Fremont (176), San Leandro (150) and Livermore (110)

Sacramento Foreclosures – Hardest hit cities are Sacramento (2051), Elk Grove (548), Citrus Heights (187), Antelope (151) and Rancho Cordova (144)

Quality Direct Mail Can Be Your Key Success Factor in Pre Foreclosure Investing

Default Research offers our clients the freshest foreclosure leads in the business and it is important that your approach to helping families in foreclosure is also fresh.  The Default Research direct mailing lists are most effective when they are combined with eye-catching materials and winning strategies to help families in distress. 

Unique postcards that show off your originality are a good place to start and a simple way to grab your customer’s attention.  Postcards also make it easier on the home owner to see your effective solutions without even opening a letter.  Besides, it’s easier on your wallet using postcards as they are less expensive to mail and very inexpensive to print.

You also must be persistent in your approach.  We recommend a minimum of three to four mailings (use a different postcard each time) followed with a phone call after sending your postcards.  However, it is important to remember that, while you want to get a response from the homeowner, being overly persistent may yield a negative response.

Don’t just depend on the postcards to bring about your desired results; you should also track the success of the design, timing and message.  Make sure to include a promotional code and tell your potential customer to mention that code for a special offer, such as a free consultation.  That code will also help you gather information about which marketing message is most effective. 

Here are a few more tips to make sure your postcard mailings bring home the message to the family in distress that you are the best person to help them avoid foreclosure:

• Use key words to show your professionalism and knowledge of the foreclosure industry
• Full color postcards are a full proof way to catch the customer’s eye
• A thick glossy coat will make you shine
• Your logo should be on both sides of the postcard
• A toll free number will make it easier for customers to contact you

Those are all of the “dos” for postcards.  Now here is the No. 1 “don’t:” DON’T USE TEMPLATE POSTCARDS.  These unoriginal postcards will yield little response and might have a negative impact on your company in the long run.

A solid marketing game plan and postcards are positive steps towards success in the foreclosure business.  By integrating the above information into your marketing plan, you can achieve the highest response rates from our pre foreclosure listing data.

Order the freshest leads from any Default Research county for six or more months and receive a free copy of, "The Pre-Foreclosure Real Estate Handbook: Insider Secrets to Locating and Purchasing Pre-Foreclosed Properties in Any Market."

"Imagine Being Able to Consistently Get Seller's To Sell At A 20% to 50% Discount!"