How to Investigate the Homeowners and Their Situation?
In a sense, they are right. You do seek to buy the property and you want to earn a nice profit as well. But that does not change the truth that the homeowners are cornered and need to explore their financial options. Your job at this point is to convince the distressed homeowners that they will get better outcomes working with you than dealing with a person who is not quite on the level. During a discussion with a homeowner, try to be a good listener and collect enough information that can allow you to provide more useful assistance and guidance:
- The amount owed on the mortgage and other liens on the property, including any owed back taxes
- The current monthly mortgage payment on the property and on other outstanding loans
- The contact information for each lien holder - contractor, lender, or others
- The amount of time left before the property is auctioned
- Assets the homeowners have that can be quickly liquidated
- Family members who can help financially
- What the homeowners see as their available choices - scale down to a cheaper house, move to a rental unit, sell the current house, relocate,
This short list can help you on your information gathering task, but as you meet with the homeowners, other opportunities and issues often present themselves. Develop an exhaustive record of your interviews with the homeowners so you can start to paint a portrait of their current condition in your mind. The more accurate data you have, the more productive you can be in creating workable and viable solutions.