Often times I will get inquiries about how to market clients that are late on their mortgage, but have not received an formal NOD. The main issue is NOD lists tend to have a low conversion rate. Nearly all of the time low conversion rates are ascribed to the data becoming public at a particular point. In which case the market gets overloaded with telemarketing, direct marketing and flyers. Some Other reason is that most of the time the borrower is so far along in the foreclosure process they are already nearly moved out and have forfeited on redeeming their house or credit.

The good news is that there is a way to contact the borrowers when they are only 30,60 or 90 days past on their deed. We obtain these pre-foreclosure lists from the credit bureaus because note lenders will report to the agencies when a client misses their deed payment. By reaching borrowers in this situation they are perfect for short sale leads. The clients have just neglected their 2nd or 3rd note installment and they need to make a decision shortly if they need to be able to hold on to their house and credit rating. It is up to you to serve these clients to make that choice and show them the benefit of a Short Sale or Loan Modification.