A Jump Start on Foreclosures

Default Research takes steps to be first out of the gate on pre-foreclosure information

By Stephanie Andre

There are a lot of companies that sell leads. Default Research isn't one of them. Instead, they are a company that acquires pre-foreclosure and foreclosure information. While they admit to not being real estate people, they acknowledge that they are, in fact, business people. And, after all, real estate is a business.

"We collect and distribute our own information from start to finish," according to President and CEO Serdar Bankaci. "Because we do it ourselves, we are able to get information out generally in two to three business days. That's much sooner than most of our competitors-it really gives us an advantage."

The company primarily deals in pre-foreclosure data, and now has a Web database that allows visitors to search for properties. Its primary customers are real estate investors, looking specifically for pre-foreclosure homes. However, the company also deals with mortgage brokers and lenders, credit counselors, banking attorneys and brokers and agents.

"The ability to search for properties is very important for lenders and investors," says Bankaci. "In doing the work ourselves, our information in the search is up much earlier than on other sites."

"It's just a difference in getting the information dispersed," he says. "We have the most up-to-date and hand-collected information. We collect 95 percent of the data. Most of our competitors use automated services from title companies, for example. In those cases, they usually only receive 60 to 70 percent of the documents available."
Default Research's staff includes 10 in-house researchers as well as independent contractors across the country. "Those are the people in the courthouses, getting the information quickly for our customers," he explains.

"By providing the data sooner, it allows people in difficult situations to work with others to start working out their problems earlier, so they have more options," explains Ban-kaci. "They need to start fixing their problems rather than waiting until days before auction."

Complete-and Fast-Information

For Roy Malone, president of Bloomfield Financial Services in Detroit, Michigan, using Default Research's offerings is essential to his business' success. His company deals in foreclosure mitigation as well as short sales for owners of foreclosed properties.
"Basically, they provide us with 100 percent of the information we need," explains Malone. "The most important item they provide us is the phone number. So often, you can get pre-foreclosure information but it's missing the vital contact information."
Tanja Diamond, owner of Solutions for Distressed Homeowners in Seattle, Washington, agrees.

"The fact that they provide phone numbers on a regular basis is so im-portant," says Diamond, whose business helps people in pre-foreclosure to figure out solutions. "I would say about 90 percent of the phone numbers they provide are accurate and up to date-which is a great feeling. Plus, the way the information is formatted makes it very easy to read and easy to find what you're looking for."
According to Malone, most of the business he currently has is the result of Default Research's lists. "We get the lists quicker than with other sources, which gives us generally about a month before the drop-dead foreclosure date."

A Time Saver

Having the information come through faster and with more frequency is another plus, according to Malone.

"It really saves time," he says. "At one point, we were subscribing to Legal News, but there was so much work involved in converting the name, address and phone number. Now, I am saving money just by using Default Research."
"You save hours and hours of piling through paperwork at the courthouse," adds Diamond. "If I didn't have this, all of my time would be spent in research, going through records and accounting."

It's also a matter of using your time wisely to establish a relationship, she says. "You're getting a jump on the competition by having your leads be fresh. A lot of people that use title companies are on one- to two-week delays for information. By that time, I've already established a relationship with the homeowner. In a worst-case scenario, they already know my name."

The Future of Foreclosures

According to Bankaci, he believes that the foreclosure market, unfortunately for homeowners, will continue to flourish.

"Foreclosures will continue in the manner that they are traveling in now," he says. "Look at Michigan-the state recently announced 30,000 to 60,000 job layoffs. That's going to affect the housing market there in a big way."

That said, Malone attests that companies like Default Research are important for the industry as a whole. "The bigger the foreclosure market gets, it's important to have a reliable source of information," he says.

Whether it's boom or bust, there will always be foreclosures, says Bankaci. "Our business really isn't affected by foreclosure rates," he says. "You will always have people out there who are interested in foreclosures." RE

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