Pre-foreclosure leads: how to find and reach owners

What is a pre-foreclosure lead?

It is a homeowner who has missed mortgage payments and may face a foreclosure sale, but still owns the home. The window is short. The owner may be open to a fast sale that clears the debt and avoids a sale at auction.

Rules and timing differ from state to state. In some states a lender must go to court. In others it can sell the home after a notice. The steps are different, and so is the time an owner has left.

That makes pre-foreclosure a sensitive kind of lead. The owner is often stressed and has many people calling. A calm, honest buyer stands out.

How do I find pre-foreclosure owners on DrivenSellers?

Use the Pre-foreclosure filter in the Data Pool. Pick a county or a whole state, choose the filter, and pull the owners who match. Each property costs $0.20, and up to 5 members can hold the same record.

The Data Pool is a prospecting tool. It is not a feed of exclusive leads, and we never call it one. Here is what you get when you pull:

• Individual homeowners only. Companies, trusts, estates, banks and government owners are left out.
• Off-market homes only. Homes that are listed for sale are never counted.
• A phone number or an e-mail on every property you pay for.
• Do-Not-Call and litigator flags shown on every number.
• An optional property data add-on for $0.20 more per property: estimated value, equity, mortgage balance and more.

You can preview a county for free before you pull. Data can be out of date, so check each record before you call.

What if a seller on an exclusive lead is behind on payments?

The card shows it. Exclusive leads list the seller's reason and whether they are behind on mortgage payments. A hard reason, like foreclosure, and being behind on payments both add points to the lead's grade.

This is different from the Data Pool. An exclusive lead is a homeowner who wants to sell for a cash offer, and it goes to one buyer. On the card you also see how soon they want to sell, whether the home is vacant, and how much equity there is.

Every exclusive lead is guaranteed for 5 days: a 5-day refund window if it is not as described. Read exclusive seller leads to see how that works.

How do I approach an owner who may lose the home?

Lead with care, not with a price. Say who you are, ask how they are doing, and offer to explain their options. Never pressure, never promise what you cannot do, and be ready to walk away if a sale does not help them.

• Ask first: where do things stand, and what outcome would help most?
• Explain how you work in plain words, including how and when they would be paid.
• Put every term in writing and suggest they ask an attorney or a housing counselor.
• Give them time. A rushed owner is likely to back out or later regret the sale.

Some states have special rules for people who buy from owners in foreclosure. Learn the rules where you work, and follow them.

What should I check before I make an offer?

Check the loan balance, any second mortgage or lien, unpaid taxes, the sale date, and who is on the title. These decide whether a deal works. A home with little equity or many liens may not pencil.

A title company or an attorney can confirm these facts. Do it before you spend money on the deal.

How fast do I need to move?

Faster than with most leads, but not rushed. Timelines are set by state law and by the lender, so the owner's real deadline may be close. Call early, ask for the sale date, and plan around it.

A pull from the Data Pool can be shared with other members, so a slow reply may mean someone else reaches the owner first. A grade on an exclusive lead helps you pick who to call first: A+ starts at 80 points and means the seller is most likely to sell soon.

Keep notes in MyCRM and set a follow-up date for every owner you speak with. Many deals need more than one call.

How do I keep my outreach fair and legal?

Follow the calling and texting laws, check the Do-Not-Call lists, and stop when an owner asks. In the Data Pool, numbers on the Do-Not-Call list and known litigators are flagged so you can see them before you dial.

You are responsible for how you contact people. The flags are a help, not a shield. If an owner says they do not want calls, record it and stop.

Read the terms for the contact rules that apply to your account.