You receive a call about this lead,so you call and you start asking open ended questions, only to find out they are already approved and are closing tomorrow. Do you get mad ? or Do you follow up with a letter like below and hope 6 months down the road they call you for a line of credit, or a refinance.

I hope you all send a letter similar to this so they think of you!!!!

Here is a letter that I use if I am confronted with the aforementioned scenario:

September 12, 2008

Dear                                      :

Thank you for taking the time to talk to me yesterday, and Congratulations on your new home.

I hope it provides you with many memories that last a lifetime. As per our conversation if I can be of any assistance to you in the future please do not hesitate to call me.

When you work with me you work with the best team the mortgage business has to offer.  The Mortgage Force team is ready to work quickly accurately and professionally on your loan right now. 

Whether you are buying a new home or pulling cash out to improve your existing home,  building an addition, consolidating your debt to free up your monthly cash, buying a second home, or making a sound investment in a rental property,  I can get you the loan you need to make it happen. I am able to provide great rates and outstanding customer service.

We have relationships with more than 56 lending institutions, including the top lenders nationally and regionally. This is why I am able to provide you with the best rates and lending programs that fit your needs.

Although you may not be in the market for one of our services at this time, you may be in the future or, you may have friends, family or business associates who you personally know that could utilize my services.

It's always better to do business with someone you know and trust; a personal connection is better than any advertising. That's why I've enclosed some extra business cards.

I am building my business by referrals and you can be confident that when you refer someone to me, they will be treated with the same respect and given the same level of service I would give my own family.

I thank you in advance for your cooperation and trust, and I look forward to helping you with all your mortgage needs.

Sincerely,

Scott Blanchard

Loan Officer

Mortgage Force, LLC

Office: 203 270 6252

Fax: 203 270 6255

Cell: 203 312 6910

This is an introduction to buying Bank-Owned Properties. Most buyers do not understand the intricacies involved in buying bank owned or foreclosed properties. There are many things that must be understood before considering these investments. The following are a list of facts and items that you must know. They are the most common elements but are by no means all-inclusive. Prior to making an offer you should request a copy of the bank addendum's and review them carefully.

  

1. UTILITIES: Usually are shut off. The bank wants the buyers to turn on utilities in buyers name prior to city and private home inspections and for appraisal.

  

2. CITY INSPECTIONS: The bank wants the buyer to pay for the city inspection and accept all repairs and conditions prior to closing.

  

3. PRIVATE HOME INSPECTIONS: The bank usually wants all potential buyers to pay for their own private home inspection prior to writing an offer, but may make exceptions.

  

4. RE-WINTERIZATION: If winterized, buyer must pay for de-winterizing and re-winterizing the property up front.

5. CLOSING COSTS: Banks are hesitant to pay much in the way of buyers costs, perhaps 3% at the most. VA or HUD will not pay. If the property is HUD or VA owned they will not provide title insurance or pay transfer taxes.

  

6 EARNEST MONEY DEPOSIT: The deposit monies are usually required to be held by the listing office or title company. Because the buyer's agent does not hold them it is very difficult to get back in case of a dispute. They usually want $1,000 in certified funds. Based on a Pre-Approval from buyer's lender, the bank will try to keep the earnest money even if the buyer's mortgage is denied.

  

7. CLOSING DATE: Banks want a firm closing date within 30-45 days or less. If buyer cannot close by that date, even if no fault of their own, the bank will charge a per diem fee, usually $100 per day.

  

8. CLEAR TITLE: Banks will only give you a Special Warranty Deed and not a Warranty Deed. They may not want to pay for title insurance. If an issue arises after closing you are in a difficult position.

  

9. "AS-IS" CONDITION: The bank is exempt from disclosing defects in the property and limited in Lead Based Paint disclosures. These homes are usually in rough condition and have been vandalized. Expect extensive repairs.

  

10. CERTIFICATE OF OCCUPANCY: The buyer must obtain their own Certificate of Occupancy in order to occupy property in cities that require inspections. Some cities require that a Bond or Escrow be placed with the city prior to issuing a temporary certificate of occupancy. This bond, from $500 to $3,500, may be forfeited to the city if the property is not brought up to code within 6 months of issuance. Some cities will not even allow utilities to be turned on without a deposit.

  

11. NEGOTIATION: It may take several weeks of waiting and negotiating before a bank accepts an offer from you. Offers are usually countered and accepted verbally. The bank considers a verbal offer to be binding on you but not on them. Some bank addendums even have an escape clause for them essentially giving them the right to back out at any time and for any reason right up to closing. Banks do not usually accept really low offers. Instead, they will gradually reduce the asking price until someone takes it.

  

12. EXTRA FEES: Some bank addendums require you to pay the banks real estate agent a fee or bonus of several hundred dollars.

In general, buying a bank owned property is a high-risk venture. A buyer needs about $5,000 to $20,000, in liquid funds, over and above the normal closing costs to even consider buying a bank owned property.