Short sale leads can be found for sale on the Internet. Consumers go to “stop foreclosure” web sites and enter their contact information requesting foreclosure loss mitigation assistance. These leads are then offered for sale to investors, real estate agents, mortgage brokers and loss mitigation consultants.
Some companies offer the leads for sale in batches in certain geographic areas or nationwide, while others offer the leads for sale in a “cherry pick” scenario where the lead buyer previews the lead responses and selects the leads on an individual basis.
The advantage with the Internet lead is that the homeowner has requested assistance and is expecting a call. Other lead services simply offer contact information for people who have gone in default but have not asked for assistance. Conversion ratios for this type of “cold call” lead is extremely low because the default information is public and the homeowner is often bombarded with advertisements.
Short Sales are done primarily on properties that are facing foreclosure. Usually, there may be more owed for the property than the property is now worth. And the owner is one or more months behind on payments. So any residential property is a candidate for a short sale if the owner is behind on payments and facing foreclosure.
To find short sale leads you can search legal notices in your local area to find people who already have a pending foreclosure proceeding on their property, so legal notices are a primary source for short sale prospects. Your local MLS system will also contain listings that are preforeclosure and are also short sale candidates.