Meeting with your new client about that short sale deal doesn’t have to be a nerve wracking event.  A little preparation and following the points below, it’s a cinch to make a hit of that first preforeclosure meeting.  After you’ve had few phone calls with the homeowner and confirmed the time and location of your meeting, you have three steps to do in preparation. 

1)     Deed research:  You’ll easily find the General Warranty Deed and get the Power of Attorney signed, but these two documents have a gap that needs your work to put in additional information.  Go to your county recorder’s office, look for specific information (You can find what you need to get at Real Estate Investor.com), and copy & paste this into the documents. 

2)     Make two copies:  Put your copies into manila folders.  Don’t wait until the last second to do your paperwork. 

3)     Head to the Notary:  The warranty deed and power of attorney require a notary stamp when they are signed. 

There are a few places you can head for your short sale meeting.  You can meet in a public location like a coffee shop or bank.  Banks are convenient because they have a notary on the spot and it’s free.  Sometimes people are hesitant to talk about their preforeclosure matters in a public area, so we suggest doing the meeting in the person’s home.  People are comfortable in their homes and much less likely to change their minds—they live there, so when you show up at the door they likely to be there. 

Step-by-Step Meeting Process 

The preforeclosure meeting with your clients can be broken into four separate segments so you can easily understand the flow of the meeting. 

1)     Bonding and rapport:  This is an extension of walking into the house, doing a little tour and greeting any family members around.  Have your small talk ready.  Some people are “naturals” at this, but if you tend to be shy or uncomfortable, make sure you have several subjects such as sports and weather that can make you and the homeowner feel comfortable in this situation.   

a.     Show empathy not sympathy:  Show that you understand the client’s situation and care, but don’t feel sorry for them.  This creates a separation that is hard to work around. 

b.     Mirror the client:  Communication is more body language than verbal.  Mirror the client’s gestures—if they talk fast, you talk fast; if they slouch, you slouch, etc.  Not too much though, or you’ll end up making the clients uncomfortable. 

c.     Have everything up front:  Don’t throw surprises at people.  Tell them what you are going to do before you do it. 

2)     Collecting homework:  Ask the homeowner if they’ve completed the six documents (mentioned in ‘The Phone Call’) you need in order to get started on the short sale deal.  If you have documents that need to be filled in, get them to the homeowner. 

a.     Stay organized.  A checklist is great.  Make sure you check things off one at a time and keep track of what you’ve done. 

b.     Give praise when deserved: Say “good job” when something is prepared.  When they don’t have things ready, don’t scold them, but let them know that they should have had it ready.  Don’t let people walk all over you.  You always have to be kind, but don’t necessarily have baby the clients. 

c.     Don’t waste time:  Once you’re done with bonding and rapport, close that door and leave it behind you.  Don’t waste time chit-chatting while doing the paperwork.  This shows you are a busy person and your time is important. 

The financial document in particular can take a really long time.  It’s best to brainstorm with the homeowners about all of their major and minor expenses to get the information you need and complete the document yourself later. 

3)     Signing documents:  Many people find this part of the preforeclosure deal scary, so it’s important you do the right procedures to make this as painless as possible. 

a.     Don’t rush client:  Be absolutely clear that the clients can take all the time they need.  People can get very nervous when they have legal documents in front of them.   

b.     Give general descriptions:  Give people just enough information so they have a good idea of what they’re signing.  If they have any questions, make sure you answer them.  Always make sure to ask if everything sounds OK after you explain the document and before they sign. 

c.     Do not stare:  People don’t want to feel nervous when signing legal papers.  You don’t want people to feel like you can’t wait for them to sign.  The homeowners are always wondering if they are going to get scammed in preforeclosure situation.  To make them feel more comfortable, you might want to excuse yourself, go make a phone call, so they have plenty of time to read things over and you aren’t watching over them like a hawk. 

Some additional documents to go over with the clients when you meet are the Agreement of Money Disbursed and Forms for specific lenders.  Give the Agreement of Money Disbursed to your clients if you plan on giving them money at closing.  Explain that that money will go to them once the deal is successful to help them pay for something in the home, like appliances.  Don’t confuse the clients into thinking they get the money no matter what or that you’re giving them money for their house.  Certain forms are needed for certain lenders, make sure you have every document you need for specific lenders and have copies for the clients. 

4)     Wrap up:  End the meeting with your clients, so you can get back to the office and get started on the next steps of your short sale deal.     

a.     Double-check: Go through all the documents again and make sure all the lines are properly filled out and everything is signed.   

b.     Make sure the client understands the website:  Confirm that the client understands all the documents and processes.  Tell them about REIShortSales.com where the homeowner can check the status of their preforeclosure.  This will save you time from calls and stress. 

c.     Give a business card:  As you leave, give the homeowners your card.  No matter how many contacts you have in place, like the website, the homeowners need to know that you care.  Current base clients are also one of the best ways to get additional leads through their friends or acquaintances. 

The above steps to carrying out a successful and complete first meeting with your clients will work just about every time.  The preforeclosure process has never been so easy.  Be sure to keep a copy of this article for reference.