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Late Mortgage Lists - Who, What, Where, When (Not Necessarily in That Order!)
Written by Al DiBeradino
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Hello and welcome. Before I start discussing late mortgage lists and how these types of lists can benefit you in your marketing efforts, I would like to take a minute to introduce myself.
My name is Al DiBeradino and my business is marketing and data solutions. I am happy to share my expertise with you in this ongoing series of informational articles and blogs. Ok, so now let’s get down to the business at hand.
What is a Late Mortgage List?
A mortgage late list is simply a list of homeowners who are behind on their home mortgage payments. The rate of delinquency can be 30, 60, 90 or 120 days currently late on their home mortgage. The key word here is currently. This means that we can generate a list of distressed homeowners before they are actually in the foreclosure process and before a Notice of Default (NOD) or Lis Pendens (Latin for “suit pending”) is served.
 There is also many other tidbits of information on output with these lists such as name, address, credit score, high balance on the mortgage, current balance, number of mortgage trade lines, phone number (optional), mortgage payment amount, and of course current mortgage payment status.
Where is the best source to pull a Late Mortgage List?
If you do a search on the internet you will find a multitude of sources for a list. The sources are almost endless… generation of these lists could be from TV and radio ads, internet landing pages, direct telemarketing or direct mail. However, these are usually offered by lead producers and you will pay 10 times, 20 times or most times even greater to purchase a list from a lead generation company. Now these would be considered a “hot” or “warm” lead since a homeowner has inquired about a service or answered an ad to help them with their late mortgage payments. Great! But due to the extremely high cost for these leads, why not generate your own?
Another source could be at the county level after papers have been served to the late homeowner and the foreclosure process has begun, but the lists available there are public information. Good luck competing against a multitude of other firms and investors for the same piece of business.
In my opinion and in the opinion of most of my present client base, pulling leads from the credit bureau has been the best database for generating good quality leads without paying thousands for someone else to do this for you. Due to the frequent updating and the many selects available to filter your lists, they are unsurpassed in accuracy and performance. Read on…
When we pull a Late List from the Credit Bureau.
When we pull a pre-screened list from the credit bureau to market services to late homeowners, we do what is called a soft inquiry or also known as a soft pull. Now, this action does not create an inquiry on the home owner’s credit report (like a hard inquiry would). It is the same process a bank or Credit Card Company uses when they send you a direct mail piece for their credit card offers, or when insurance companies send their offer to apply.
Below is a brief description of a soft inquiry:
A soft inquiry, or soft pull, is a term used to refer to an inquiry into your credit history that does not adversely affect the credit score. Often, you are not even aware that there has been a soft inquiry on your credit report. For example, if you receive a solicitation in the mail offering you a credit card, the credit card company has most likely conducted a soft pull to see if you qualify. When mortgage lenders pre-approve you for a loan, they initially use a soft pull. Potential employers use it as a part of background checks, and your current credit card companies use soft inquiries to check up on you. Banks use them to verify that you are who you say you are when opening an account. If you check your own credit report, which you can do for free once a year, this is done with a soft pull. Most of the time, you do not even know when they occur, and they do not affect your credit report.
Since the credit bureau’s use an opt-out system similar to the FTC’s Do Not Call, you may contact each of the major bureaus and opt out of being included when a company pulls a list.
Who should I be using Late Mortgage Lists For?
These late lists will perform in a number of industries and applications, but here are a just a few suggestions where a late list will work to help fill your sales and lead pipeline:
Refinance Loan Offer - If you can offer a loan refinance, just think how a late list would benefit your day to day operations. In this down turned economy, unfortunately this option is probably not going to happen as often as in the past.
Loan Modifications – You can offer services that will assist a distressed homeowner in the restructuring of a mortgage. If a borrower who faces a long-term financial problem can demonstrate the ability to meet the modified payment terms, you may be able to help them with a loan modification.
Short Sales - You can negotiate with the current lender on behalf of the homeowner to see if the lender agrees that selling the property at a moderate loss is better than pressing the borrower. If both parties consent to the short sale process it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit score for the borrowers.
Deed in Lieu of Foreclosure - A deed in lieu of foreclosure is where you deed your property to the lender in exchange for being forgiven the entire amount of the mortgage. The lender then sells off the property in order to retrieve as much of the unpaid mortgage amount as they can.
Credit Repair - If you are in the business of credit repair. These late homeowners will be a perfect database to market your services to.
Referrals to Realtor - Remember the old term "bird dog?” This is when you find a potential client (distressed home owner that probably has no hope in saving their home) and refer the business to an affiliate Real Estate agent or Investor for a commission. If you are in the business of finding properties for "Short Sales,” whether you work the short sale yourself or refer the client to a 3rd party, these lists will work for you.
Reverse Mortgage - We can tailor a list of borrowers who are 62 ½ years old with 50% or more equity that are currently late on their mortgage payments.
Investors - Do you have the cash to invest in real estate? There cannot be a better time than the present if this is your interest. These lists are perfect at filtering for your ideal client.
Bankruptcy Attorneys – Many distressed homeowners have the income to pay their mortgage moving forward, but can never hope to come up with the arrears to cure the mortgage default. Enter the attorney who may be able to save the family home through a Chapter 11 or 13 bankruptcy. So, if you are a partner in a law firm looking for that next client you can help, these lists perform very well in a direct mail campaign.
In Closing…
I am sure as you were reading this article a few ideas may have popped into your mind as to how you can benefit from using a Late Mortgage List. The key to good, successful marketing is in most cases, getting there first. Beat your competition to the punch! Since these lists are pulled before the information contained within them becomes public knowledge, these lists will do just that - get you there first!
We know your market! We have a list of homeowners in your area that are currently in trouble with their mortgage payments and possibly with other debt and creditors, but they are not yet in foreclosure.
We at Black Book Data can target any potential client with a laser beam focus by strategically using the filters that will enable you to market to your ideal client. If you are convinced that a Late Mortgage List will help your business or if you would just like to discuss your marketing, please do not hesitate to call me at (800) 884-7507 Ext. 10 and I will be happy to offer a free analysis and advice to help explode your sales goals for the upcoming year. Happy Selling!
About the Author:
Al DiBeradino is a Senior Marketing Consultant with Black Book Data and the owner of VIP Financial Group US . He can be reached at (800) 884-7507 Ext 10.
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