Part (2/4)
INTRODUCTION
We often get asked by real estate professionals if we could help them find real estate leads from bankruptcy case information. The answer is a resounding -- yes. There are two ways to find these leads. Below we will discuss finding leads from a chapter 13 case. Next, we’ll discuss finding leads from a chapter 7 case.
WHY BANKRUPTCY INFORMATION?
Chapter 13 is a specific type of bankruptcy geared for homeowners. It allows debtors who have fallen behind on their mortgage payments to reorganize their financial affairs by "making up" their mortgage arrears through a court approved repayment plan. If the debtors are able to continually make their plan payments, their Chapter 13 case proceeds forward.
If they can't make their payments, the bankruptcy case gets dismissed. Once dismissed, there is no bankruptcy protection and the mortgage lender may proceed with foreclosure. In fact, many times a Chapter 13 case is filed to stall a foreclosure and gets dismissed within weeks after filing. Regardless of the exact circumstances, once a bankruptcy case is dismissed, homeowners look for other solutions such as a sale, short sale, a deed in lieu, or other possibilities that would allow them the relief they are seeking.
To sum, debtors who had their Chapter 13 case dismissed are good candidates for some type of a real estate transaction.
LEARN HOW TO USE INFORUPTCY'S DATA
We provide a weekly list of Chapter 13 newly dismissed cases. We will email you a spreadsheet that has the contact information of the debtors (name & address), the contact information of their attorney (name, address & telephone), and in most cases the contact information of the lender (name, address, & telephone). Here is a sample of that spreadsheet:
Bankruptcy residential real estate leads
Below is an instructional video walking you through the spreadsheet.
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To sum, the information in the spreadsheet we email every week contains all the parties’ relevant information needed for a real estate agent (or investor) to reach out and put together a real estate transaction. EXTRA TIP FOR SHORT SALE CANDIDATES In the event the circumstances of the case favor a short sale, it’s good to know that there are benefits for both sides. The bank benefits by avoiding the legal cost of a foreclosure, the financial cost of putting the real property on the bank’s balance sheet, and the hard cost of maintaining the property. The debtor benefits because they might be able to stay in the house longer during the sale process. In some cases, the bank may also provide a cash incentive to the homeowner to consent to a short sale. For example, Bank of America and Wells Fargo offer programs that compensate for relocation expenses. SUMMARY As we have discussed in this article, Inforuptcy can be used as a valuable marketing and lead generation tool to find real estate sales opportunities. |
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