How to Stop Foreclosures At the Last Minute!

Michael D Frankie D is for door knocking preforeclosures Michael what is the difference between preforeclosures and foreclosure a pre- forclosure is a house that's behind on payments but it has not gotten to the auction yet so in previous videos we talked about the timeline until a foreclosure it's a pre-foreclosure until it hits that foreclosure auction after that foreclosure auction happens at the courthouse steps then it turns into a foreclosure okay so let's say it's a mon do you guys have a specific date in your auction or we have auctions pretty much daily okay so so do we but in Texas you don't I think it's like the second or third Tuesday of every month inside of Texas so Texas like you guys have a massive day of a lot of foreclosures happening the same day so let's say it's a Monday and the Foreclosure auction is set at 1151 a.m. a seller has been ignoring you you and your team have reached out on when the nood list was posted you guys call it a what appointment an appointment lead okay when you get the appointment lead you have all this time frame you've been reaching out to the seller the seller's been ghosting you but then they reach out to you Monday at 900 a.m. and saying hey Michael I'm getting foreclosed on in 2 hours and 51 minutes I've been ignoring all 116 attempts of yours and your team I need help I imagine it's too late what is your answer there's obviously a lot of ninja things you can do and it takes some skill to get these foreclosure sales stopped um but the reality is that if they wait until this long more than likely it's going to end up for closing but I know you and I have stopped stuff right at the last second okay so you can stop it right at the last section uh section second sorry um couple things I would do Michael will make some dedicated videos on how to stop foreclosures on his channel also so my wife Laura has stopped live foreclosures inside of our community inside of the sub2 community she calls it takes a lot of work it's tough sometimes with that little time frame the challenge the challenging thing is getting a hold of the bank and the trustee to get approval and so can it happen it absolutely can okay now I would say that there's a couple of things that you can do Michael will talk about these in Greater length on his other channel number one you can pause or extend the Foreclosure by calling the um loss mitigation Department okay this can sometimes take 12 minutes or 12 hours depending on how many people they are that are in the queue for you to talk to somebody who's a decision maker and sometimes you have to talk to two or three different people my wife was just talking to somebody the other day she calls them she goes hey Laura um I called the trustee and I couldn't or I called the bank and I couldn't get a hold of anybody in the loss mitigation department and um laur's like like you got to call like 15 times all the time so if you're going this route you probably have a 60% chance on the final day of stopping or extending the Foreclosure another way to do it is some people will tell me not to talk about this come at me bro um a lot of times the sellers have an option if they file bankruptcy the day of their auction or before that it will extend it stop it push it back what will it do so it's stops the sale and then depending on your state it might be 30 60 120 days until that property would Loop through the foreclosure process again I'm not telling you to go tell your seller to do this I'm just telling you that when we are communicating with sellers the sellers will say stuff like what are our options and we'll say well option one is I get somebody on the phone and desperately try and stop or POS the pause of foreclosure a lot of times I will run down to the trustees office I personally ran down to the trustees office you guys probably seen Eric you remember that seller I I oh my gosh I wasn't even wearing any underwear when this happened okay Aaron Green in the sub2 community has a foreclosure lead here locally he had been doing all of this reaching out to the seller reaching out to the seller the day or the night before the seller reaches back out to Aaron green and says okay please help me extend the Foreclosure Aaron green sends me a text message he goes I need Pace I know you don't get involved in these things but I need somebody to take the seller down to the trustee the trustee says if you bring the seller down and you bring the arar right now and you catch up the rear they'll extend or stop the foreclosure and I'm like bro I'm not even in my underwear right now um and I have no time to like change I need to run I had to drive 45 minutes get the seller drive him to the truste we got to figure it out with like six freaking minutes to spare and we recorded this you can also do this with bankruptcy am I telling the seller to go and file bankruptcy no but I have before and I'm not telling you to do that I'm telling you I have done that and it does work and I suggest you don't do it don't tell the seller to file bankruptcy you are not an attorney you don't want to do that but I'm just letting you know I have done it okay in private quarters when I'm no nobody on YouTube's watching me I might potentially maybe maybe maybe maybe give you a different answer okay so bankruptcy is another one anything else I I can do you can think of guys at the end of the day we' talked about in all of these videos why these sellers go with us and it's our persistence throughout the process and this is the time where we cannot give up pace talks about extending the the foreclosures by calling loss mitigation I don't know how many times I have called with an hour two hours left and you get someone on the phone that's incompetent you know they are it drives you crazy okay do not waste any more time I will politely end the conversation hang up you keep call calling eventually you're going to get that lady or man that's worked there for 30 years right and they'll say a whole different thing than what the person before said oh wow I actually care about people I'll help them out let me escalate this to the top level that's the person you're going to want to find Pace said that Laura calls 10 15 people you do what it takes to get these people the the what you're saying Michael is let's say that I'm it's me right here's you Michael D Frankie okay Michael D door knocking Frankie makes a phone call to the the 1 1800 number that's on the whatever I get a hold of the first person you're telling me that just because this person says no or sounds like they have no clue what loss mitigation is or foreclosure I shouldn't just give up guys they're going to say on the phone whatever their handbook for the lender says they're going to say well it takes at least five business days to get a reinstatement there's no way to stop the sale you cannot take no for an answer you're trying to save the seller's livelihood okay so you politely hang up you obviously don't want to tick off the people at the lender hang up call again it's a call center you're going to get all kinds of different people you're going to call this 800 number first person here is going to say no second person what would you plan on them saying no too yeah they're going to say no as well okay third person they're you might start getting some somewhere but it's going to take potentially 5 10 15 calls perfect so you get a hold of somebody that finally has been there 30 years and they care and then what they do is they go yeah I can help you and they give you to the decision maker the DM baby the decision maker what are you doing typically in that situation Michael will make a more in-depth video on that on his channel but let's talk about this right now let's say I can't stop the Foreclosure right let's say that the seller I have had this too okay I had a seller this is back when um we were running our door knocking team I had Matthew was my partner at the time Matthew beard he was running our J knocking team and we had a seller literally the day before right here in this this go Zone okay they're like running the bases they're rounding third base heading to foreclosure plate they're about to lose their for their home to foreclosure and we said well you've got two options we can help you pause and extend as long as we get under contract we're not going to help you pause and extend if we're not under contract or you guys can go in and file bankruptcy uh but I'm not giving you that advice that's what we always would do guess what the seller did what did they do they let the house go they just said it's not worth our time we don't want to go through more of this we're just sick with the house and we could not get them under contract they just let the house go and they honestly didn't believe that the house was going to go to foreclosure my team was all but Hur about it Matt was butur about it he's like oh this sucks I go no it doesn't here's why it doesn't suck okay what we did is we started using this house as a story with other foreclosure pre-foreclosure sellers saying hey this is what happened when you think okay and we went to the house um our house our our state you get like 5 to 10 days to get out of the house the sheriff will come in and pull all your stuff out so what we did is I had my team go and take photos of and guys this sounds brutal and Savage but sometimes this is what sellers need to see in these situations so what we did is we took a a before photo and an after photo of the house the before photo was before the sheriff pulled all their stuff out of the house and yanked it out onto the yard the Constable the constable the next one was after and there's a pile of stuff and I go this is before the Foreclosure the day I could have saved the seller here's 5 days after this is what's going to happen if we do not make a decision because this is real have you ever had that anything like that a seller just lets it go to foreclosure absolutely people are in disbelief they think that what the the lender doing is illegal they're going to sue them they're going to do all these things and it's never going to happen to them guys as The Trusted adviser we've talked about that in other videos at some point when it gets close you kind of have to change your tone and be hard on them you got to give some tough love and be like look we've been fighting with you this whole time on getting this foreclosure sale stopped you wait till the last second this is exactly what's going to happen I love Pace's idea on having Visual Evidence of this is exactly what's going to happen you can say look your options are I can help you get it extended you can go file bankruptcy on your own accord or you can sign an agreement with with me I can get it stopped and then you can can have a peaceful process to find your next home or whatever the process may be or you can have the the risk of whoever buys that thing at the Foreclosure sale and you're going to be kicked out of your home in a few weeks what sounds better to you right okay so let's say that they actually get foreclosed on Bank comes in trusty comes in somebody an investor buys this house at 11:51 a.m. they become the new owner what are the options for this for us at this Point are we can we redeem this so depending on the state yeah they have Redemption rights like for where I'm from the Kansas side like I told you in a previous video Wild Wild West it's a yearlong party of interesting in terms of redemption rights Missouri side No Redemption rights okay Arizona same thing we don't have any Redemption rights unless your HOA foreclosed on you or you are foreclosed on from state taxes if you're foreclosed on one of those things but the trustee taking the house back for the bank is zero Redemption there's nothing they can do about it yes okay so what does that now become is this becomes okay so that's a Sheriff sale it's different the Redemption sub is a Sheriff sale this is now what we call an REO well not REO what is an REO this is very important for people to know an REO what's the acronym for this is real estate um real estate owned which means the bank went to sell this on the auction nobody bought it for the reserve price and the bank actually ends up taking the house back and putting in their portfolio which they do not want they end up hiring a real estate agent to go list these properties and get them turn around and put them back in the market so sometimes you'll hear about REO agents or you'll hear agents that'll brag about like oh yeah I had an REO account for a really long time it's like wow bro that's really really good that's the bank taking all these houses back they don't want the houses back and then hiring these agents an outside party to clean up the houses put them back on the market now this is also what we would call a foreclosure okay they are actually foreclosed on they are done no redemption house cannot be owned um a lot of these sellers you will run into them they will believe well I'll just buy it on the auction or I won't buy it on the auction what I'll do is I'll buy it from the investor or I'll keep renting it from the investor that buys the house have you ever had anybody say that to you people will come up with any excuse to not work with you and this is why it's so important in those last few days to set the stage on every possible situation and just call their BS it's like look you think you know what you're talking about but you're sitting in front of the person that knows more about foreclosures than anyone in this market here is exactly what is going to happen if you don't act right now okay so is there a time where we cannot help the seller any longer yeah the answer is right here when the house gets foreclosed on done it's gone now do you buy on auction I have tried to buy at auction but there's so many hedge funds down there that I can't afford the prices that they pay okay so same thing in our Market in Arizona we have something really interesting we have bidding services do you guys have those not aware of those okay so this is a very this is how bad it is at the auction here okay what happened is back during the big auction days years and years ago back in like 2008 9 10 11 12 so many hedge funds were in Phoenix Arizona Invitation Homes Blackstone all these companies um Colony homes they were all down at the bidding at that auction just bidding against each other and there was a couple of really smart dudes Spencer Caldwell he's actually going to be coming on the YouTube channel pretty soon he's one of my good friends they said you know what we should do is we should create a coalition of bidding services and make it so nobody can bid at the auction without going through us so we have five to seven bidding services in the State of Arizona privately owned that basically it's it's the mafia they are the mafia they make it so everybody pays $2500 to even let you make a bid at a public auction these are private people that block you from making a bid at the public auction Pace they can't block me I can go to a public auction yeah you think so they are so good at manipulating you to the point where you're out there on the auction step all five of them will manipulate you into a house you do not want they will bid you up to the point where you think it's actually a good deal you're like oh my gosh these guys are bidding like crazy on this house I'm going to keep bidding and then they all once you get bid to a certain point they all pull back and they're like good luck with that freaking house they've been doing that for years so we have a bidding service like Coalition or Mafia I should call it here in Arizona no regular human being is going down to the auction it's not happening so the best chance for you is get them before the auction date is there Point let's say the seller calls you Michael at 11:50 a.m. they got a minute to spare anything I can do at 1150 you're probably toast you're toast okay you are toast so um hopefully this helps you I think what Michael's going to do I'm telling this to Austin right now Michael's going to make a video on his channel talking about the five options that he gives to the seller before all of this happen so that he's building Rapport and giving those five options I've filmed eight videos or nine videos with Michael and I haven't fed him today guys I've given him one fresa he needs some replenishment so we're going to let him go and we'll see you guys in an extension of the series I'll be in Kansas City for that extension and I hope that Michael takes me door knocking in his Hometown Market I don't want to door knock in in in um Kansas I want to door knock in Missouri okay we can do it all right brother thank you thank you for having me guys go over to Michael D Frankie's YouTube channel D is for door knocking and we'll see you guys in the next video

Channel: Pace Morby

Views: 6,482

Keywords: real estate investing, real estate, pace morby, creative finance, pace morby creative financing, creative finance pace morby, creative finance real estate, subject to, subto, seller finance, wholesaling, wholesaling real estate, seller financing, gator method, real estate investor, sub to, pace morby subject to, how to invest in real estate, passive income, real estate for beginners, real estate investing strategies, investing in real estate, multifamily, private money

Id: HDqO_5jnw9o

Length: 16min 28sec (988 seconds)

Published: Fri Jun 21 2024