Your approach may be determined by the practices of your state.  Whether the state is judicial, or non judicial, and whether there is a redemption period after the foreclosure auction that a homeowner can redeem the house, by making payment, and getting it back.  You would not want to sink $30,000 into fixing up a house, just to have it redeemed by the original owner.  Here is a chart that gives information on the legal practices of each state regarding foreclosure.  Laws do change, so check with the county, and consult other investors in a real estate investor club to understand the laws.

     To get the official notice of foreclosure in a non judicial state, you will have to find out what newspaper publication is used for the legal foreclosure notice.  In some areas it will be a local paper, but in some it may be a monthly legal publication.  In some areas you can find all the information on line.  In Georgia, there is an effort started just last month, to get all the counties in Georgia listed on one data base, that will be published on line.  It may be a long time in coming.  Some counties may not have as efficient of a system to make that on line report, as others.

     After getting that report, first narrow down the area you want to work in.  I have access to a very large area, but I feel overwhelmed unless I just choose my immediate area.  I am still talking about 300-500 foreclosures.
With this report you will have the name, and address of the foreclosed home, and the amount that they first mortgaged, and the date they took the mortgage out.  Send the homeowner a series of mailings.  Some will be letters, some postcards.  Every two weeks is a good schedule.  If you only have 28 days from the public notice to the auction, you may only get two mailings made.  If you are in a judicial state, and checked for the lis pendes at the court house, you will have much longer.  Be creative would you open a letter that looked like it was from a company, or would you open one that looked like it might be an invitation?  Which would be better handwritten, or typed address?  Would you open something that looked like it had something in it?  There isn't a definite answer to either.  People are different, and have different responses to the mail they are getting.  Use both formal and informal, and see what works for you.

     Another marketing approach is to knock on the homeowner's door.  If they answer, be friendly, introduce your self and anyone with you.  Ask if they are the homeowner, or the name of the person.  Then, I usually say, I was looking at these legal notices, and saw your address, and was wondering how I could help you in this situation. There is a difference in opinion about mentioning the foreclosure, or legal notices, but for me, If I am not suppose to say something, I might accidentally blurt it out, in a way that sounds worse than if I just said it in the first place. Sometimes they may say it will be taken care of, or they "don't know."  Then I ask them if they wanted to keep their home?  If they say"yes", I may ask them what have you already tried doing to keep your home?  At that time, depending on the reception, I may ask them if they would like me to go over with them what they can do to attempt to keep their home, and that this consultation is completely free.  If the response is positive, I will sit down with them, and explain their options.  They can then do it on their own, or if they want, give me the written consent to talk to the mortgage company.  If the answer is "no", they don't want me to sit down to talk to them about it, I hand them an article I have written about what their options are in pre foreclosure.  I also leave this if there is no answer when I knock on the door.  If they will read it, I may have helped them anyways.  Can I help everyone?  No!  Only if they want me to help.  The Federal Housing Administration, said, 50% of homeowners that lose their home to foreclosure, have never even talked to the mortgage company.

     You might wonder, what all this "helping" is doing for me?  First of all, it is the ethical approach.  Just because a person did not know they could save their home, should that be taken advantage of?  For some, that is all they will need to get back on track, and stay on track.  Others it will just give them some time to make a decision on their options, and they may sell their home to me in the future, instead of being foreclosed later.

During this next week, I will be explaining more about approaching a Pre Foreclosure homeowner.

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