By Maureen O'Grady Condon, MS

Investors who have succeeded in the foreclosure market have mastered one key skill - they know how to write compelling letters to distressed homeowners.

Effective communication requires a thorough understanding of the audience you're trying to reach. When the audience is a homeowner who has recently learned that the bank is starting foreclosure proceedings, it's more important than ever to be sensitive to the reader's situation.

Strong sales letters share several key components. They:

• Have a clear objective - the writer knows what he wants to achieve.
• Engage the reader immediately to make him want to read on.
• Inform the reader by providing relevant information, statistics and trends.
• Communicate empathy for the reader's needs, challenges, and goals.
• Invite the reader to take a specific action and make it easy to do.

If you struggle to write letters to distressed homeowners that lead to productive relationships and profitable results, you may be approaching the task without all the information you need. Here are seven tips that will help make the job easier and produce better results.

1. Emulate investors you respect.
   The foreclosure market is competitive, but successful investors often share tips and advice with each other. If you have a trusted relationship with another investor, ask her to read your letter and offer tips or ask to see a letter that led to a deal.
2. Approach the letter as a puzzle.
   Using the above keys to strong sales letters as your guide, break the letter up into several chunks and then concentrate on each section.
   1. Start with your opening. Is the tone appropriate? Will it spark interest in the reader so she wants to learn more? Questions can be a great way to open a sales letter.
   2. The next section is where you explain what you can do for the homeowner. Write with empathy for the reader's situation and emphasize that you have the ability to achieve a win-win situation. Detail what you would like to do to start working together. Avoid over-promising, as this is a sure way to lose credibility with the reader.
   3. Now you need to qualify yourself with the homeowner. If you've done your job in the previous section, you have convinced the reader that working with a third party may be the best solution. But you still need to convince her that you are the best third party choice. Spell out your credentials and share any success stories you've had with other homeowners.
   4. Close with a strong call to action. What would you like the homeowner to do and how should he do it? If you want him to get in touch, provide your telephone and e-mail information. If you plan to follow up, detail when and how you will do so. Always thank the reader for taking the time to read your letter.
   5. Include a powerful P.S. that encourages the homeowner to take action with a third party and take charge of the situation.
3. Appeal to the head.
   Compelling sales letters include the right balance of information and empathy. The reader learns something because the letter offers a new insight, an interesting and relevant fact or an idea that the reader hadn't considered. Do all the research necessary to present yourself as an informed, credible source who can be trusted.
4. Appeal to the heart.
   Good letters connect with the reader by showing an appreciation for their situation. People faced with foreclosure are often experiencing moments of true despair. Sharing stories of other homeowners who have found themselves in similar circumstances can be a powerful way to appeal to the heart. The key to success here is sincerity. People can see through your words and feel your compassion - or your phoniness - so be genuine.
5. Get personal.
   When detailing your skills, experience and qualifications to help the homeowner, you can build connections with the reader by sharing something personal about yourself. You could tell them how you got into the business, why you enjoy it so much, etc. People do business with people they know, like and trust and your letter serves as your first impression. Start building a relationship with your first words by helping the reader know you.
6. Focus on you, not I.
   After you draft your letter, reread it to see how many times you mention the word you and how many times you say I. The word you is the most powerful word in the English language. Strong sales letters take full advantage of its power. Your letter should clearly and persuasively answer the question, "How will the reader be better off by working with me?"
7. Proofread your letter.
   Few things hurt your credibility more in a letter than bad grammar and typos. Have someone proofread your letter before you mail it.

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Distressed homeowners often are inundated with letters from interested investors. By following these seven tips, you can ensure that your letter stands out from the crowd.

Maureen O'Grady Condon, MS is president of Condon Communication (www.condon-communications.com). She can be reached at (508) 405-4355 or maureen@condon-communications.com.

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