You Can Help Take a Homeowner from Distressed to Dreaming
People lose their homes.
It’s an awful experience for most, and the situation comes with a myriad of emotions. Although you can help turn the situation into a win-win experience, if you don’t know how to properly tackle the sensitivity of the topic, you aren’t going to help anyone. Rather than shying away from experiences that can be emotional and uncomfortable, lean in.
Understanding the basics of an Equity Deal is a good place to start. To further your understanding of these processes, you need to understand the etiquette necessary when talking to a homeowner in trouble.
Put yourself in their shoes. Many owners who are on the brink of losing their homes are emotional, desperate, and/or in denial. You must be aware of their position and ready to step forward with confidence.
Tips for Working with Troubled Homeowners:
– First, you HAVE to be respectful. Smile and be courteous. Don’t present yourself as a money-hungry investor unless you want a door shut in your face. You are not doing them a favor, and you don’t have the upper hand. This is a win-win situation. If the owner feels you’re taking advantage of their plight, you won’t build any trust.
– Assure them that you will help if they’ll let you. You need to know what you’re doing (If you don’t, let us help you learn CLICK HERE to learn more about events coming up where you can learn the basics). Appearing as a novice investor will not gain trust. Practice with a friend or spouse if you need to, and deliver your polished pitch with professionalism.
– Explain that foreclosure is inevitable, and if they don’t take action now, they will lose their home at auction. But don’t ever threaten or say anything to purposely upset them.
– If they want to tell you their “sad story,” as many will, listen to them. You will likely learn a great deal about the history of the home and the loans associated.
– Be compassionate, sympathetic, and understanding of their situation. There’s no reason to be rude or disrespectful, ever.
– Don’t force the issue. If they aren’t ready or if you didn’t explain things well, leave and try another time.
– Dress business casual. You want them to feel relaxed around you, but know you are competent.
Now that you have some pointers, marry them with this simple process for a winning formula.
1. Contact the homeowner (or respond if they contact you). We’ve talked about how to do this before, but if you still need help getting started, PLUG.
2. Schedule an appointment to discuss in person how you can help, determining their needs and getting the appropriate paperwork signed. If the initial conversation happens on the phone, that’s fine, but express the importance of meeting face-to-face because you need them to sign…
3. Paperwork: You must get a homeowner to sign the proper documentation to begin working with them (each state and lender requires different paperwork, so do your research). Be sure to know what is needed and have it ready to be filled out.
a. Authorization letter: This lender-required document is vital in order to begin working together, stating specifically whom they may release any information to about the loan.
b. Purchase and Sales Agreement: This creates the ability to purchase the property IF the bank accepts the offer, allowing you to be the sole investor with whom the homeowner and bank can do business with. They can be at ease, however, because this document is only valid when the lender agrees to the purchase price or if you offer more than the homeowner owes.
Assure the homeowner that they are not signing their life away and should be comfortable with the process! This is simply a step they must take to get the ball rolling, but for you, it is the goal of the meeting.
To help distressed homeowners on a new level, consider training in the field of Lien Abatement.
This overlooked and little known investment acquisition strategy can result in a windfall for you and a better quality of life for the neighborhood in which the strategy is deployed.
Learn the secrets to securing the right to turn garbage into gold by following this strategy and becoming a Certified Lien Abatement Specialist.
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To Your Success;
Lee A. Arnold
The Lee Arnold System of Real Estate Investing
To challenge yourself personally and in your business, CLICK HERE.