You are not taking advantage of anybody’s misfortune. You are creating a win-win situation: You save homeowners from foreclosure or bankruptcy and help lenders to recover their money. You also deserve your share in return for your efforts and investment. In other words:

Homeowner gets out of debt (and trouble).
Bank/lender avoids bad loan.
You acquire a property, and make it more valuable. And, profit from what you do.

Know and use your advantages in pre-foreclosure negotiations

Use the following to your advantage:

Owners at the pre-foreclosure stage are worried about going into bankruptcy. They have limited time to solve their problems. They may need to have more money to pay their increasing debts and late payments. They will save their credit, and may even get cash out of the transaction if they act on time.
Lenders want to solve the problem before their loan becomes a bad loan. Not only that, but they will also have to acquire the real estate, tie their money to it, and wait for the proceeds from the sale to resolve outstanding loans.
Many people in this situation try to find more money to solve their problems. People often get into trouble as they try to find more money because they end up getting further in debt. Lenders can figure out what is going on pretty easily. The lenders check clients’ credit report, which shows their credit card debts and some other problems. When the owners receive a letter or call from the financial institution stating that their card payment has been declined, it is too late!

Advise both sides that you can handle the transaction fast and to the satisfaction of all parties. Time is of the essence.

Convince the lender

To be successful, you need to convince the bank. Then, you need to negotiate a good deal with the owner.

Remember: You need written permission from the borrower to deal with the lender. Otherwise, the lender is prohibited by law to disclose financial information about its borrower.