How to Grow Your Business with Pre-Foreclosure Leads

As a seasoned real estate agent, I’ve explored focusing on several types of leads to grow my business. In my experience, pre-foreclosure leads are one of the more reliably high-converting lead types that have made a larger impact in building a solid client base over the years.

We’re always focused on closing deals, converting clients, and marketing. Still, I find working with people in the state of pre-foreclosure to be transformative for my business for multiple reasons. This is largely because it allows me to provide my services and expertise to sellers who truly need assistance, offering multiple solutions to help them get out of distress. 

Not only am I helping people regain some control over their decision-making to help them feel empowered in getting out of what can be an extremely stressful situation, but in doing so, I am able to build trusting, long-term relationships with my clients, who have helped me build a large referral network. Referral business is a huge asset if you want to see your business grow exponentially. 

The only drawback to pre-foreclosure leads is the research you have to do to locate and find accurate contact information for them. It’s easy to source the information once you build your relationships with lenders, attorneys, etc., but that takes time. I have found buying leads to be an excellent way to jumpstart my client base. 

What matters most to me when buying leads is ensuring that I am investing in high-quality leads that I can rely on to help build a steady pipeline. I want to avoid having to chase down accurate information if I’m spending money on leads. One of the online platforms I’ve found particularly effective for securing pre-foreclosure leads is KeyLeads. KeyLeads vets each lead before sending them to your dashboard, which saves me time and allows me to focus on lead nurturing and my existing clients. 

Below is more information on how I integrated pre-foreclosure leads into my strategy and why I recommend them as an essential part of your real estate toolkit. Plus, I recently talked to a fellow real estate agent about what methods he used to find success with pre-foreclosure leads and his answers. 

Why Pre-Foreclosure Leads Matter

First and foremost, it’s essential to understand and take to heart that people in pre-foreclosure are at risk of losing their homes. You are stepping into a world where your help is needed, and sellers are typically highly motivated to receive assistance in getting out of financial stress. 

Here are why pre-foreclosure leads are important:

• Motivation: Homeowners in pre-foreclosure are more likely to be motivated to sell to recover financial health.
• Less Competition: Fewer agents target these leads, allowing you to stand out. Plus, time is of the essence, and decisions must be made quickly. 
• Opportunity to Build Trust: By offering real solutions, you position yourself as a trusted advisor, helping homeowners navigate challenging times. This often leads to a higher referral business. 

From experience, I’ve found that with the right approach, pre-foreclosure leads can yield high conversion rates and help you build a positive reputation in your community.

Here’s what expert real estate agent Richard Mews says about pre-foreclosure leads and how he reaches out with effective marketing to engage pre-foreclosure leads:

“I reach out with kind, helpful messages, sending them without delay. They offer help and solutions. I’ve developed a targeted approach. It educates homeowners about their options. It also positions me as a trusted advisor. My team and I create personalized outreach campaigns.”

How KeyLeads Helps You Source Pre-Foreclosure Leads

As mentioned above, one of the biggest hurdles when dealing with pre-foreclosure leads is finding accurate, timely information to assist homeowners before their properties go into foreclosure. 

This is why investing in a platform that you trust delivers high-quality leads can be a smart business decision. My go-to is KeyLeads because they focus solely on pre-foreclosure leads, vet the leads, and guarantee 20 per month with full contact information in your target geographical area for a flat fee.

Key Takeaways on KeyLeads:

• Delivers Curated Data: KeyLeads was built with quality in mind when it comes to the lead data it provides. This is achieved by using multiple data points from trusted sources to get contact information.
• Saves Time and Resources: Instead of researching missed payments through county tax offices and then cross-checking with lenders and attorneys, which can take a lot of time, I have more time to focus on my existing clients and lead nurturing. 
• Exclusive Leads in Target Market: I can purchase the specific zip codes where I am focusing on building my reputation and expertise, and rest assured that pre-foreclosure leads are exclusive, reducing the competition. 
• Free Marketing Resources: Not sure how best to approach distressed homeowners first? It takes a little finessing, but KeyLeads gives you a headstart with access to their free tried and true scripts, templates, and marketing tips to help you easily engage sellers. Additionally, they provide articles that keep you updated with market trends and education on how to grow your business. 

This level of research responsibility, which sites like KeyLeads provide, also enhances my success rate in reducing the time it typically takes to convert leads to clients. 

Richard also suggests buying leads and being selective about where you source them. Here’s what he had to say when I asked him if he recommends buying leads: 

“Buying pre-foreclosure leads is a huge asset to my real estate business. These leads target motivated sellers. They let me focus on homeowners who truly need help. Purchased leads often have valuable data. They help me tailor my approach and boost my success rate. Curated lists saved me time and resources. So, I scaled my outreach efforts. I’ve learned that lead quality can vary between providers. So, I am selective about my sources and always verify the info. Investing in pre-foreclosure leads has a strong ROI. It boosted my closing rates and expanded my client base.”

Strategies for Engaging Pre-Foreclosure Leads

Addressing leads in financial distress can be difficult and requires a thoughtful, compassionate approach. Your goal is to offer genuine help rather than simply close a sale and build trust that you are there to offer solutions. 

Personalized outreach that expresses empathy and solutions leads to meaningful engagement. The best strategy is to use multiple methods of connection to break the ice with homeowners.

Here’s what has worked for us:

1. Personalized Communication: It’s imperative to acknowledge that you understand what the homeowner is going through and how stressful the situation may be for them. I share how I have helped others avoid foreclosure and offer to meet to discuss their options.  
2. Educate and Empower: You want to position yourself as a trusted advisor rather than a salesperson. To help establish that relationship, I offer free consultations to discuss and educate the homeowner on their options, from loan modification to selling, to avoid foreclosure. 
3. Leverage Social Media: Targeted ads on social media are a great way to address homeowners in distress without feeling intrusive. Creating ads with the same personalized approach helps viewers feel more comfortable reaching out and hopefully take you up on that free consultation.

Here are methods that Richard Mews mentioned worked for him: 

“We combine direct mail, phone calls, and social media ads to reach distressed homeowners seeking help. This strategy has boosted our listings, helped families avoid foreclosure, and increased our market presence.”

Working with Lenders and Attorneys to Expand Lead Sources

Beyond buying leads, I’ve built strong relationships with local lenders and attorneys who often know about potential foreclosures before they hit public records. These partnerships have become one of the most valuable assets in my business.

I specifically asked Richard if he also builds relationships with lenders and attorneys, and here is his response: 

“I collaborate with lenders and attorneys to uncover valuable pre-foreclosure leads. I’ve built strong ties with local banks and credit unions. They often alert me to potential foreclosures. I know foreclosure attorneys. They share info on upcoming cases. This gives me a head start in contacting homeowners. I attend industry events and seminars to connect with these pros and stay updated on trends. This teamwork has greatly increased the number of my lead sources. It has also improved the quality of my leads. I also started a referral program. It rewards lenders and attorneys for sending distressed homeowners my way. These partnerships have benefited both parties. I can help their clients and grow my business.”

Key Takeaways on building relationships:

• Collaborate with Local Banks and Credit Unions: These relationships are mutually beneficial, and often, they will alert you to homeowners who may be in financial distress, which also helps decrease competition. 
• Network with Foreclosure Attorneys: Connect with attorneys who share information about upcoming cases to give you more time to connect with homeowners in need.

Other Resources to Discover Pre-Foreclosure Leads

Expanding your outreach and building relationships is imperative for building a client base for long-term growth and success. This is why diversifying your lead sources is essential. While KeyLeads is my primary resource, I also rely on several other methods to maximize my reach:

• Public Records and Court Filings: I can find leads in the early stages of foreclosure by regularly checking for default notices.
• Real Estate Data Services: I subscribe to several data services that provide information on distressed properties.
• Social Media and Community Outreach: Targeted ads on social media and connecting with homeowners through community groups have proven effective.

I asked Richard what other resources, research methods, and relationships have helped build a consistent pipeline of leads: 

“I often search public records and court filings for default notices and lease pendens. They state the early stages of foreclosure. I’ve subscribed to real estate data services. They provide up-to-date info on distressed properties… I’ve built relationships with local tax assessors and county clerks. They can provide insights into properties with delinquent taxes. I also network with real estate pros, like property managers and insurance agents. They often meet homeowners in financial trouble. I ran a direct mail campaign that targeted neighborhoods with high foreclosure rates. It has yielded consistent leads.”

Best Practices for Building Trust and Converting Leads

Once you have found accurate information for homeowners facing impending foreclosure, the next step is to develop a meaningful engagement system.

Richard was kind enough to offer advice and the steps in his approach that he has found to be the most effective: 

“Connect with leads through personalized, multi-channel communication without delay. Offer valuable market insights and neighborhood information to establish your expertise. Mix phone calls, emails, and texts while maintaining consistent but not overwhelming contact. Ask qualifying questions to understand their needs and timeline. Always provide a clear next step, whether it’s scheduling a meeting or viewing a property. Use a CRM to track interactions. Be patient, yet persistent. Focus on building trust and showing your value as a real estate agent.”

I fully agree with Richard’s advice, and here are the key takeaways:

• Connect Immediately: Reach out as soon as you get the lead. Homeowners are often considering their options, and the sooner you connect, the more likely they are to respond.
• Provide Valuable Information: Offer insights into local market trends and explain the foreclosure process, which can help establish credibility.
• Ask Qualifying Questions: Understand each homeowner’s timeline, financial situation, and willingness to sell. This helps tailor your approach, but you want to make sure you have established trust before being too inquisitive. This could be off-putting if not handled appropriately.
• Be Patient but Persistent: Consistent, gentle follow-ups remind homeowners that you’re there to help them, not just make a sale. 

I have yet to mention this, so I’m glad Richard brought it up! Using a CRM system to track interactions is essential for managing pre-foreclosure leads and making sure no one slips through the cracks. Another reason why I chose KeyLeads is that they have 84+ integrations, which allows me to stay organized and ensure I follow up appropriately without overwhelming prospects.

Final Thoughts: Why You Should Consider Targeting Pre-Foreclosure Leads 

Incorporating pre-foreclosure leads into your real estate strategy can be transformative because they typically need your help and are in situations that require timely assistance. If you are focused on growing your business, helping homeowners avoid foreclosure establishes a reputation as a trusted expert in your community, leading to sustainable growth.

Buying leads is a great way to increase your ROI, and platforms like KeyLeads make finding pre-foreclosure leads significantly easier. They save you time and provide the data needed to connect with homeowners.

I hope this article helps demystify the process of finding and engaging pre-foreclosure leads for you! Using the tools and resources in your business strategies will benefit your career as an agent for many years to come.