5 important things to know about foreclosure

5 important things to know about foreclosure
Video Transcription

Mike: Good afternoon everybody and thanks for tuning in. For those who don’t know me yet, this is Mike, aka the Wholesale Preneur from Atlanta, Georgia.

Today I wanted to talk about a topic and how the understanding of this topic as helped me to close more deals, it as helped me tremendously to close more deals.

Whenever I was dealing with this stress, homeowners and the pre-foreclosure situation, I have noticed that there’s certain patterns, certain patterns and these patterns were repeating itself over and over and over again and I like to call those patterns the five mental stages of foreclosure. Okay. The five mental stages of foreclosure and how the stressed homeowners is going through these motions is what I’m going to explain here today and how we can make this understanding work for us and our business to be more successful. Okay.

Let’s jump right in. Okay.

Quick disclaimer here: The information that I am giving out here is just for the home State of Georgia, that’s my home State. From whatever State you’re tuning in, it might be different, so you might want to go back and check with your home State, what the laws and regulations are in your State. I’m talking about the 30 day notice of intent to foreclosure, that’s the scenario I’m giving you guys here. Okay. Let’s jump in.

The first stage of that denial is the denial itself. Basically, the homeowner would say stuff like, I’m not really losing my home, they aren’t really going to foreclose on me and kick me out, that’s just a bad dream. When they’re at this stage, you want to reach out to them, lend them your ear, give ’em a helping hand. That’s all you can do because they in denial.

The second stage is the anger. That’s the anger phase. The homeowner would say stuff like I’ve been victimized by predatory lending, this is unfair, this is just not right. When they’re at that stage, the second one, the anger stage, establish yourself as an authority, stand firm, you will not get through to them because they’re completely angry. They angry at any and everybody, they angry at the world. Just be an authority, establish yourself as an authority, stay firm and just let them release that anger. Okay.

Once they pass that stage, they gonna go into the depression, which is the third one, the depression. The homeowner would say stuff like, okay I can’t save my home, just take it. You know, I don’t even want it anyway, take it back. There’s nothing I can do to save my home, here it is. At this stage, which is the third one, the depression, be a friend. Be a friend, very important. Because if you are a friend and you have established some type of relationship because you have been at the other stages prior to that, now they will be more receptive to what you have to say. Okay.

Now we come into the fourth stage, which is the acceptance. The homeowner would say stuff like, okay, I missed my payments, but I’m ready to get creative and I’m ready to go find a solution to stay in my house, to stay in my home because after all this is my home. At this point, they actively seeking help. At this point, be there and give ’em options. Very important. Be there and give ’em options because they accepted it. Okay. At this point give ’em options and they will be very receptive.

From that stage, then they will get to the fifth one and this is the last one. The fifth stage which is the bargaining stage, aka the substantive settlement negotiation. What that means is the homeowner is going to say something like, okay, here’s what I can realistically pay every month to stay in this house, this is what I can afford. Okay. It’s a reality check, they realizing, okay, this is what I can afford and that’s all that it is. Okay.

When they get to that fifth and last stage which is the bargaining stage, guide them to what’s the exit strategy that you had in mind. That exit strategy is very important because you should have this exit strategy in mind from the get-go when you got in. From level one, two, three, four, five, you should have had an exit strategy in place right away. That’s very important as a professional in this industry that we’re in, have an exit strategy every time. Okay. Adjust it, but have a plan; an exit strategy.

To sum that up, we have the five mental stages of foreclosure, the five mental stages of foreclosure. The stages are … I’m gonna go through those once more in hierarchical order, we got the stages, denial is number one, anger is number two, depression is number three, acceptance is number four and bargaining is number five. Those are the five mental stages of foreclosure. Okay.

Guys if you found value in this video, give me a thumbs up okay, don’t be shy, give me a thumbs up. Also, leave a comment in the comment box, very important because you might have ran into a situation like this, but your perception might have been totally different. You might have came up with other creative solutions or any other situation that you ran into that was kind of similar, but you had different solutions, please put it in the comment box and let me know how you creatively resolved this issue, okay. Also, join our family, our Facebook group okay, our Facebook family. It’s the wholesale-preneur Facebook group, the wholesale-preneur Facebook group, that’s our tribe. Become a member, become part of something bigger, okay. It’s the wholesale-preneur Facebook group. That’s where we meet, that’s where you can come in and be part of it, okay.

Again guys, thanks for tuning in and have an awesome rest of the day. Good-bye.

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