The Hidden Foreclosure Market
Any real estate investor would know that, in the niches of real estate business, the hidden foreclosure market is one that contains the biggest deals. But while it may have the biggest deals, the foreclosure market is very competitive, which is why in general investors stay away from them.
But there is still a way to get deals in the foreclosure market without having to fight it out. All you have to do is look for that chance where you can convert a lead into a deal, that opportunity which actually has always been there.
The first thing you have to remember is this: Every lead is sacred.
Regarding foreclosures, you will find that people will do either of three things:
- Pay back and escape foreclosure
- Find a buyer
- Claim bankruptcy
Most would choose the third option and claim bankruptcy. And what most of the real estate investors would do is to stop following up on these properties. Foreclosure has stopped, after all, and nothing can be gained from it anymore.
One thing that you have to realize, however, is that most people who claim bankruptcy don’t always stay bankrupt. A lot of reasons can be found for a person to be removed from bankruptcy, the primary of which is that they cannot comply with the terms of the bankruptcy. And when they’re pulled out of bankruptcy, foreclosure would start all over again.
This would be the chance for real estate investors to get in the hidden foreclosure market and get on top of the competition — the foreclosure gap. The foreclosure gap can be referred to as the time when the foreclosure has stopped because bankruptcy was claimed to the time when foreclosure starts again because of the removal from bankruptcy.
Every lead is sacred.
If the general population of real estate investors has dropped leads that led to bankruptcy, you can be among the few of those who’ll try a different tactic.
Follow up on the lead even if the person has filed for bankruptcy. You can send cards or notes that you will still support them in case they’ll need a hand in the future. In the end, when the bankruptcy claim has been lifted and the foreclosure starts again, you will be among the very first to be called in to get the deal done.
The key here is to continuously build a relationship with your leads. While giving yourself a lot of openings and a lot of chances, you’re also giving them a way to call you when they’ll be undergoing for a foreclosure again.
The situation has also become a little ironic in this case. From a market wherein there is a lot of heavy competition, you have actually turned the tables around and found yourself in a niche that has no competition at all! This is because almost nobody follows up on these “bankruptcy” cases.
Every lead is sacred. The hidden foreclosure market is proof of that.
