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ErikOk

Mortgage balance

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Do you all ask the seller's mortgage balance on the first contact? It seems to be the place where we are getting the most resistance. Some sellers will tell us everything, but some won't.

 

I'm thinking of NOT asking the mortgage balance until I find out if they are interested in a L/O.

 

I usually have my assistant ask the mortgage question, along with some other questions, and then if the seller answers these she will send me the sellers information for me to follow up on.

 

I'm thinking I am possibly losing some deals with asking the mortgage info up-front. Thoughts?

 

What list of questions are you all asking on first contact?

 

I appreciate everyone's feedback.

 

Erik

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I'm thinking of NOT asking the mortgage balance until I find out if they are interested in a L/O.

 

That's my approach, Erik. Most homeowners aren't going to be forthcoming with what is considered the most personal of information 2 minutes after talking to you. Besides, we don't need that info until and if they are considering doing business with us.

 

On first contact I want to educate the homeowner about the advantages of doing a lease purchase type of deal with me. If they don't understand it, they're not going to dance. If we get past that, then I want some property specifics: bedrooms, bathrooms, square footage, etc. The conversation can veer off in any direction depending upon the personality you are speaking with, which is why this advice isn't worth too much. :blush: My point being, don't interrogate, educate. Be friendly while controlling the conversation so you can make your points and get the info you need.

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The other way I do it is to check the public record.... mortgages get recorded and you can see what the original balance was on the mortgage and when it was originated, then guestimate whether there is equity. You won't see the note on the public record (which includes the interest rate) but you should be able to get a general idea whether there's equity in it. At times the interest rate is included on the mortgage. Recall: originating a house loan includes a promissory note and a mortgage (I promise to pay, and if I don't my house is collateral).

 

I really like looking through the public record of the property during my due diligence. Once you do it a few times, it's fast, simple, and cuts down the overly-technical riff raff. I like to see the last few deeds myself and know what the actual deeded property lines are.

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