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This is a notice of default letter.
It arrives in a plain white envelope. The homeowner’s hands shake slightly as they open it. “Notice of Default” sits at the top in bold, unforgiving letters. Below that: “You are hereby notified that your payment amount of $_________ was due on or before _________ (the missed deadline for payment).”
The amount isn’t small. We’re talking $8,743. Or $15,892. Or $23,451. Numbers that make stomachs drop.
“This amount is past due and you are in default. If this entire amount is not paid in full by _____, 20XX, the undersigned will pursue legal action against you.”
Legal action.
Now look at this timeline.
- Day 1: First missed payment.
- Day 90: The letter arrives.
- Day 92: The phone calls intensify.
- Day 100: More letters, more threats.
- Day 120: Something strange happens. The homeowner stops answering the phone. Stops opening mail. Stops believing there’s a way out.
Unfortunately, this is the reality of how most pre-foreclosures go. Most homeowners don’t think to try and sell their homes, unless someone is there to show them their options.
Here’s what Jeremy Back saw in St. George, Utah. A “really nice lady” in Hurricane, Utah, past her 90 days. The auction process starting. She was about to walk away from her home. About to let the bank take everything. She just didn’t know she had any other options.
Now look at these numbers: In pre-foreclosure today, REDX exclusive data shows 15% will list their home within the year. Compare that to your sphere of influence which only lists at about 3-5% turnover annually. These homeowners need to sell. They just don’t know they have options.
Now what do you think happens when an agent makes that first call?
“I saw you were in the foreclosure process through county records. Were you planning on getting current on your payments? Or were you planning on cashing out on the equity that you probably have by selling?”
Equity. That word changes everything.
The Hidden Opportunity for Pre-Foreclosure Real Estate Agents
Here’s what’s different about today’s pre-foreclosures compared to 2008: these homeowners have equity. They’re not underwater. They’re not trapped. They’re sitting on $50,000, $100,000, sometimes more in home value that will vanish if the bank forecloses.
But they don’t know this. They’re getting bombarded by investors offering pennies on the dollar. Scammers promising to “save” their home. Predatory tactics from people who smell blood in the water.
This is where you come in. Not as another vulture, but as the professional who helps them see what Jeremy Back calls “the right direction.” You’re not there to force a sale. You’re there to show them their options, including keeping their home if that’s what they want.
The key? You have to understand the process in your state. How long does foreclosure take? Who are the HUD counselors? What are their real options?
The Conversation That Changes Everything
Picture this moment. You’re on the phone with a homeowner in pre-foreclosure. They’re defensive. Embarrassed. Ready to hang up. Jeremy Back calls it “expired plus embarrassed.”
Then you ask:
“Well, you probably have a lot of equity in your home. Have you considered cashing out?”
Silence.
“That way, you can get caught up on some bills and rent something while you figure everything out. Does that sound like a win for you?”
The shift is palpable. Suddenly, they’re not talking about losing everything. They’re talking about walking away with money. Starting fresh. Protecting their credit.
Look at what Jeremy discovered: The homeowners who seemed least interested (the ones saying “we’re going to get current” – often became his best clients. Why? Because he didn’t push. He offered resources. HUD counselor contacts. Real information about their timeline. Then he followed up every few days, not weeks.
“Did you have a chance to have that conversation? Oh, it’s ticking down. Why haven’t we had that conversation yet?”
Here’s the script that works: Not a pushy sales pitch. Just questions.
“If you were to sell, where would you go?” “Have you talked to somebody about what it takes to get a rental?” “If we could save your credit so you could buy another home in a year or two, would that help?”
Each question peels back another layer of defensiveness. By question four or five, the wall comes down.
How to Become a Pre-Foreclosure Listing Agent – The Right Way…
Start like Jeremy. Not with leads. Not with scripts. With the money trail.
Jeremy Back’s breakthrough came when he stopped chasing investors and started following the money trail. Who’s funding the foreclosures? Who holds the trust deeds? At the courthouse auctions, while everyone else was bidding, Jeremy was collecting business cards from the money sources.
These relationships built his empire. Those same hard money lenders now fund builders who give him 30-40 new construction listings annually. All from understanding the foreclosure ecosystem that’s been around since 2009.
Your three-step system:
1. Know Your Market’s Process
- Call title companies for default lists
- Find the foreclosure attorneys
- Take them to lunch (yes, really)
2. Build Your Marketing Arsenal
- Vortex w/ Pre-Foreclosures for monthly updated leads
- Postcard campaigns: Use something catchy as a headline like “The Easy 3-Step Process to Sell Your Home After a Notice of Default”
- Ad Builder for targeted campaigns: “Here’s What to Do When You Get Your Notice of Default”
- In-person door-knocking – these leads will probably be embarrassed and showing your empathy in person will go much further than an impersonal call.
3. Master the Conversation
- Lead with empathy, not expertise
- Ask five questions before making one statement
- Focus on their options, not your opportunity
- Set appointments for face-to-face meetings
Remember that lady in Hurricane, Utah? She walked away with $10,000-$15,000 because one agent made one call. Not because he was the best salesperson, but because he showed her what she didn’t know – that she had equity worth saving.
The Bottom Line
Becoming a pre-foreclosure listing agent isn’t about exploiting desperate people. It’s about being the professional who shows up when predators are circling. Who provides real options when homeowners think they have none. Who helps families walk away with dignity and cash instead of devastation and empty pockets.
The market is shifting. Banks are tightening. Defaults are coming. The agents who prepare now (who build relationships with money sources, understand their state’s process, and master empathetic communication) will be the ones homeowners trust when that terrifying letter arrives.
Your next step? Don’t wait for the wave of pre-foreclosures. Start building your foundation today. Because somewhere in your market, someone is staring at a Notice of Default, thinking they’ve lost everything.
They haven’t. They just need you to show them the way out.
Ready to help homeowners in crisis while building your listing inventory? REDX provides the highest-quality pre-foreclosure lead data and multi-channel marketing tools to reach distressed homeowners with empathy and professionalism. Get started with REDX today.
