How to Market before NOD
Often times I will get inquiries about how to market clients that are late on their mortgage, but have not incurred an formal NOD. Their essential concern is that the Notice of Default lists that they are using for marketing are not closing advantageously for them. The reason those lists tend not to close well is because once the client info goes public they are stuffed with phone calls and direct marketing. The second strongest issue is that many times once an NOD has been announced, the client may have already vacated the house.
The pleasant news is that there is a way to market the clients when they are only thirty, sixty or ninety days late on their deed. We obtain this pre-foreclosure list from the credit bureaus because note lenders will report to the authorities when a borrower misses their note payment. When you contact a client at this stage, they become perfect candidates for a short sale. The borrowers have just neglected their 2nd or 3rd deed payment and they need to make a decision shortly if they want to be able to spare their house and credit. It is up to you to help these clients to make that choice and show them the benefit of a Short Sale or Loan Modification.
