Frequently I will get questions about how to market borrowers that are late on their mortgage, but have not received an formal Notice of Default. The particular issue is NOD listings tend to have a insufficient conversion rate. Most of the time terrible closing rates are attributed to the data going public at a particular point. In which case the market gets loaded with telemarketing, direct marketing and circulars. Some Other reason is that nearly all of the time the client is so far along in the foreclosure process they are already half way out the door and have given up on preserving their house or credit rating.
The pleasant news is that there is a way to reach the clients when they are only 30-60-90 days past on their note. We pull this pre-foreclosure information from the credit bureaus because mortgage lenders will report to the agencies when a borrower misses their mortgage payment. When you reach a client at this stage, they are perfect prospects for a short sale. The clients have just missed their 2nd or 3rd note installment and they need to make a determination soon if they need to be able to salvage their house and credit rating. It is up to you to aid these clients to make that choice and show them the benefit of a Short Sale or Loan Modification.
