Why Aren’t Some Distressed Property Owners Motivated to Sell?
As foreclosures and bank repossessions surge in 2015, many real estate investors are still confused as to why distressed property owners aren’t as motivated to take help. So why aren’t property owners more eager to make deals and get help? How can more win-win solutions be created? As we rolled into 2015, foreclosure filings and bank repos spiked in many parts of the country. Yet, real estate investors are still finding many distressed property owners elusive, uninterested in selling or accepting help to stay in their homes. So what’s holding them back, and how can you help more of these individuals and organizations? The Challenges Holding Back Distressed Property Owners There are actually many reasons why homeowners and lenders aren’t jumping at offers from real estate investors. They may include: With a few rare exceptions, most of these are not good reasons to ignore or stall in any foreclosure or any distressed property situation. Unless it is being dealt with and you have a sound plan, it can get worse. In fact, it will invariably get worse. As an owner, you may not see how this is possible. At the same time, real estate investors and buyers often need to develop a better appreciation for these challenges even if they don’t understand them. Putting distressed property owners down isn’t going to help anyone. If You Are in a Distressed Situation… If you are in this situation, don’t just lay down and be victimized. It can and will get worse if you do nothing. It might not be easy, or the most fun thing you can find to do, but you need to take it head on. If you don’t, it will snowball and cripple your future for a decade or more. That’s before you can start getting on the right track again. On the other hand, you can deal with it, squash it, and seize a fresh start right away. You might even find it a lot easier to get out of the situation and brighten up your future than you think. The longer you wait, the fewer options you’ll have, and the less attractive they’ll be. Start by: You may be able to save your home and stay. You may be able to get money to move into a new place. At a minimum, you may be able to squash the debt, break free and get a fresh start. You’ve got to take action though. Try to negotiate with your lender. Find out how much you can get in a fast cash sale to a real estate investor. Don’t fall into one of the biggest blunders many homeowners have made. This is stopping paying their mortgage and just spending all the money. Some have been in properties for years without paying their mortgage payments. At some point many borrowers got too far behind to catch up. But then some have just begun spending that money on lifestyle items. They have taken on new debt and car payments, and have begun splurging on eating out every day and more. Those spending habits aren’t going to be sustainable when they have to pay rent again. And many could have saved up enough to buy a house for cash with as long as they have been skipping monthly housing payments. Yet many have nothing. They don’t even have enough to move into a cheap rental apartment. Then they are stuck. Don’t fall into this habit. It will only create more heartache and hard times for you and your family later. How to Connect with Distressed Home Owners One of the biggest challenges facing real estate investors today is simply connecting with distressed property owners. Many have abandoned their properties. Few have home phones, and everyone is fast becoming immune to email, phone, and mail marketing. Identifying and finding distressed properties isn’t that difficult, but connecting can be a challenge. The key really comes down to standing out from all the others. You’ve got to convey trust, bring value, and be ready to really help the property owner. You have to get across that you are seriously interested in creating a great solution for them. In some cases, that might just be giving them a fair price for their home in an easy sale. In other cases, it might require going above and beyond to help them move into an acceptable new home. It’s all about giving them a graceful and attractive exit, or helping them stay in a sustainable way.