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Comparing the Sources of Foreclosure Leads
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Homeowners can get into a default or foreclosure situation for a variety of reasons. They may be missing mortgage payments due to a serious illness, job loss or simply an adjustable-rate mortgage that has pushed their home loan to unaffordable levels. Fortunately for these homeowners, loss mitigation agencies can offer options and services to help them keep their homes and avoid foreclosure.
If you are in the foreclosure loss mitigation business, you know how beneficial your services can be to homeowners in default on their mortgages. So where do you find leads for customers in this situation? There are a few basic sources for foreclosure leads.
Independent Research for Foreclosure Leads
In the foreclosure process, the first step is when the consumer defaults on the mortgage loan by missing one or more payments. The lender will then notify the homeowner of his or her default status. Since a notice of default and notice of intent to foreclose are legal procedures requiring government documentation, the lender must file the paperwork with the proper government agency in the county where the property is located (generally the auditor’s or the sheriff’s office).
Under the U.S. Freedom of Information Act, much of the information filed with government agencies is available to the public. For businesses in foreclosure loss mitigation, the information needed to locate potential clients is right there in the county courthouses.
However, independent research has the distinct advantage of being free, but it sure isn’t easy. You could end up spending too much time looking for leads, and not enough time following up and closing deals.
Foreclosure Lead Lists and Databases
The first generation of marketing support for the foreclosure loss mitigation industry came about in response to the time-consuming nature of finding leads through local government offices. A whole industry sprang up to meet the lead needs of loss mitigation agencies.
Marketing support companies in the foreclosure business began compiling databases of foreclosure leads, making these products available for sale to loss mitigation agencies. Costs for this data vary considerably, depending on how detailed it is, how large a geographic area it covers and how targeted it is to the buyer’s specific needs. A fully searchable database with carefully scrubbed and analyzed information can be a great tool for helping a loss mitigation agency locate potential customers.
There are limitations to using foreclosure lead lists and databases, however. First, it takes time to gather, analyze and deliver the research to the buyer. In the default and foreclosure process, even a few days of “data delay” can make it too late.
Second, these lists and databases make no consideration for the attitude of the homeowner. While some on the list may be receptive and thankful for a call from a loss mitigation agency, others may be uninterested or even hostile about a cold call. You could end up wasting precious time pursuing customers who, for whatever reason, just aren’t interested in your foreclosure loss mitigation services.
Internet Marketing Services for Foreclosure Leads
With advances in computer technology, and growing consumer use of the Internet as a financial research tool, there is a new type of foreclosure lead. Online quote comparison sites are a useful and popular way for homeowners to seek help from foreclosure loss mitigation agencies. At these sites, the customer enters his name, contact information and basic facts about the default or foreclosure situation. The site delivers the information to its clients, who can then contact the customer directly with an offer for services.
These sites have some big advantages over lists and databases. The homeowners visiting these sites are, in effect, self-selecting for your marketing message. They know they are in over their heads, and looking for a way out. Quote match sites often work in real time, so you can receive information the moment a customer has initiated contact.
The most effective sites offer completely customizable foreclosure lead solutions, responsive customer support and fair pricing without hidden costs. While these services are going to be somewhat more costly than independent research, a return-on-investment calculation will show you exactly how much value this type of lead generation can create for your foreclosure loss mitigation business.
Here we’ve seen the gamut of foreclosure lead sources, from primary research to custom solutions. In the end, it comes down to whether you prefer to spend your time laboring through tedious research, or closing deals.
Homeowners can get into a default or foreclosure situation for a variety of reasons. They may be missing mortgage payments due to a serious illness, job loss or simply an adjustable-rate mortgage that has pushed their home loan to unaffordable levels. Fortunately for these homeowners, loss mitigation agencies can offer options and services to help them keep their homes and avoid foreclosure.
If you are in the foreclosure loss mitigation business, you know how beneficial your services can be to homeowners in default on their mortgages. So where do you find leads for customers in this situation? There are a few basic sources for foreclosure leads.
Independent Research for Foreclosure Leads
In the foreclosure process, the first step is when the consumer defaults on the mortgage loan by missing one or more payments. The lender will then notify the homeowner of his or her default status. Since a notice of default and notice of intent to foreclose are legal procedures requiring government documentation, the lender must file the paperwork with the proper government agency in the county where the property is located (generally the auditor’s or the sheriff’s office).
Under the U.S. Freedom of Information Act, much of the information filed with government agencies is available to the public. For businesses in foreclosure loss mitigation, the information needed to locate potential clients is right there in the county courthouses.
However, independent research has the distinct advantage of being free, but it sure isn’t easy. You could end up spending too much time looking for leads, and not enough time following up and closing deals.
Foreclosure Lead Lists and Databases
The first generation of marketing support for the foreclosure loss mitigation industry came about in response to the time-consuming nature of finding leads through local government offices. A whole industry sprang up to meet the lead needs of loss mitigation agencies.
Marketing support companies in the foreclosure business began compiling databases of foreclosure leads, making these products available for sale to loss mitigation agencies. Costs for this data vary considerably, depending on how detailed it is, how large a geographic area it covers and how targeted it is to the buyer’s specific needs. A fully searchable database with carefully scrubbed and analyzed information can be a great tool for helping a loss mitigation agency locate potential customers.
There are limitations to using foreclosure lead lists and databases, however. First, it takes time to gather, analyze and deliver the research to the buyer. In the default and foreclosure process, even a few days of “data delay” can make it too late.
Second, these lists and databases make no consideration for the attitude of the homeowner. While some on the list may be receptive and thankful for a call from a loss mitigation agency, others may be uninterested or even hostile about a cold call. You could end up wasting precious time pursuing customers who, for whatever reason, just aren’t interested in your foreclosure loss mitigation services.
Internet Marketing Services for Foreclosure Leads
With advances in computer technology, and growing consumer use of the Internet as a financial research tool, there is a new type of foreclosure lead. Online quote comparison sites are a useful and popular way for homeowners to seek help from foreclosure loss mitigation agencies. At these sites, the customer enters his name, contact information and basic facts about the default or foreclosure situation. The site delivers the information to its clients, who can then contact the customer directly with an offer for services.
These sites have some big advantages over lists and databases. The homeowners visiting these sites are, in effect, self-selecting for your marketing message. They know they are in over their heads, and looking for a way out. Quote match sites often work in real time, so you can receive information the moment a customer has initiated contact.
The most effective sites offer completely customizable foreclosure lead solutions, responsive customer support and fair pricing without hidden costs. While these services are going to be somewhat more costly than independent research, a return-on-investment calculation will show you exactly how much value this type of lead generation can create for your foreclosure loss mitigation business.
Here we’ve seen the gamut of foreclosure lead sources, from primary research to custom solutions. In the end, it comes down to whether you prefer to spend your time laboring through tedious research, or closing deals. |
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