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Homeowners Just Say No to $150k BofA Gift

If struggling homeowners aren’t interested in $150,000 free gifts how are real estate investors going to motivate them to sell at big discounts?

Bank of America claims an incredible absence of takers on a $150,000 principal reduction offer sent out to 60,000 borrowers. Why aren’t borrowers responding and what does that mean for real estate investing marketing?

Clearly a big part of the reason homeowners aren’t responding to letters like this is that they are just burnt out from all the mail and marketing they receive once they become delinquent. Of course many just don’t trust the banks anymore and with good reason.

Additionally many experts doubt whether major lending institutions are really making good faith efforts to assist homeowners under their obligations which were a part of the multibillion dollar mortgage settlement. Review have found the system fraught with incorrectly calculate income used to deny loan modification requests, borrowers being given the run around on the phone and ‘lost’ paperwork, which one attorney has suggested is merely a tactic to avoid granting modifications and short sales.

So what does this mean for real estate investing? Firstly is suggests there are thousands of homeowners out there who still desperately need help. However, it also means that there is just too much noise out there and regardless of how valuable your services are or how much they are needed people just aren’t listening any more.

So perhaps instead of focusing on bombarding prospects with outbound direct response advertising there could be increased ROI to be found in attraction marketing with a big focus on content and a more personal approach. Instead of hunting them down maybe just being there in the right place at the right time, in the right medium is the best approach?

 

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