How to Market before Lis Pendens
Often times I will get questions about how to market borrowers that are late on their deed, but have not received an official NOD. The key issue is Lis Pendens listings tend to have a low closing rate. The cause of those listings tending not to close well is because once the client information becomes public they are riddled with phone calls email and direct marketing. The next biggest matter is that often once an Notice of Default has been written out, the client may have already vacated the house.
This is where our function comes in to facilitate the issues named above. We pull this pre-foreclosure data from the credit bureaus because note lenders will report to the authorities when a borrower misses their mortgage payment. When you reach a client at this stage, they are ideal prospects for a short sale. At this period they are behind one or two payments and are at a crucial decision making point considering whether or not they are going to make an effort to salvage their house. It is up to you to service these clients to make that choice and show them the benefit of a Short Sale or Loan Modification.
