Getting Hold of a Client Ahead of Lis Pendens
Frequently I will get inquiries about how to market borrowers that are late on their deed, but have not incurred an official Lis Pendens. Their primary interest is that the Lis Pendens lists that they are using for selling are not converting well for them. The cause those listings tend not to close advantageously is because once the borrowers info goes public they are overloaded with telephone calls and direct marketing. Another reason is that nearly all of the time the borrower is so far along in the foreclosure process they are already nearly moved out and have forfeited on saving their home or credit.
The good news is that there is a way to contact the clients when they are only 30,60 or 90 days late on their mortgage. We pull this pre-foreclosure data from the credit bureaus because note lenders will report to the agencies when a client misses their mortgage payment. By reaching borrowers in this situation they are ideal for short sale leads. At this point in time they are down 1 or 2 payments and are at a critical decision making spot regarding whether or not they are going to make an effort to spare their home. It is up to you to assist these clients to make that decision and show them the benefit of a Short Sale or Loan Modification.
