Pre-Notice of Default leads, also known as Pre-Foreclosure leads, are a very effective tool for finding motivated sellers for a few reasons. First let's talk about the difference between a Pre-Notice of Default lead (Pre-NOD lead) and a Notice of Default (NOD) lead.
An NOD lead is someone who is being foreclosed upon. The specific foreclosure process varies from state to state, but the general process is that the bank will file papers with the county, and this information becomes public record. Since NOD's are public record, there will be lots of investors contacting this homeowner to try to buy the house before it goes to auction.
Pre-NOD's are people who are 30, 60 or 90 days late on a mortgage. These are people who may have recently had a life-changing event such as being laid off from a job or getting divorced. Others are people who simply over extended themselves when they purchased a residence. These are people who are late on their payments, but are not yet in foreclosure. This means the information is not yet public knowledge and investors using this list will have a lot less competition for the property than they would have with an NOD list.
People who are late on their mortgage and do not have the funds to bring it current typically have few options on what to do. They could declare bankruptcy or they could let their house be foreclosed upon. Another, and usually the most attractive option to the homeowner, is to sell the house before it gets into foreclosure and is auctioned off. Many people on a Pre-NOD lead list will understand their situation and that selling their house before it goes to foreclosure is the option that gives them the most control over how things are handled and limits the impact on their credit.
There are lots of companies selling NOD leads as Pre-NOD leads, and as you can see, there is a big difference between these two types of lists. To protect yourself when looking for Pre-NOD leads, here are a few things to ask the provider to be sure you are getting the real thing:
- Mortgage Balance - You should be getting the balance of the mortgage with the leads.
- Days Past Due - You should be getting a counter of how many days late the mortgage is ( ., 60 days late).
If the agreement does not include these factors or the list does not include the mortgage balance and days past due, the provider is not giving you Pre-NOD leads.
Troy Sordin is a marketing expert at Yellow Letters Complete offers turnkey marketing solutions including Yellow Letters and mailing lists. Yellow Letters Complete can be reached by calling 1-888-294-0780 and can customize a campaign for you.
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