“No, This is Not a Client that I am Willing to Assist”

“No, This is Not a Client that I am Willing to Assist”

 yesno

This is not something you will hear me say very often, but this is one that fit for a NO. I listened to an attorney tell me about a client that he had represented to nearly 10 years. He indicated that his client was currently in foreclosure, but starting about 10 years ago, he did a chapter 13 bankruptcy for her, which she was in an out of three times. This was someone who have been in and out of subprime mortgages twice, then into a chapter 7 bankruptcy and now into foreclosure.

 

There was a pretty good appeal by the attorney to assist his client, but I asked him one question and then the selling stopped. I asked him if he would loan his own money to this client? He immediately said that he wasn’t in the lending business. OK, but if you were in the lending business, would you lend your money to this client. He finally said NO.

 

Unfortunately, not everyone should be a homeowner, this is just one of those cases. Everyone along the way has found out, this person isn’t interested in paying and I would never consider having any lender that I work with, give this borrower a mortgage.

 

Based on what I have shared, would you loan your money to this borrower? I thought so.

Image courtesy of DavidCastillo/freedigitialphotos.net

“Article Says Foreclosures at the Lowest Monthly Total in Eight Years”

“Article Says Foreclosures at the Lowest Monthly Total in Eight Years”

While that is a wonderful headline, there is a big problem. I keep reading that homeownership is at historic lows. One number that I read says the lowest homeownership level in 48 years. So you do the math, is there any wonder we are at the lowest monthly foreclosure level in 8 years?

What are causes for historic lows in home ownership? There are many, but I’ll name a few:

1)    Government regulations, as a result of Dodd-Frank are making home ownership an out of reach dream for many.
2)    Employment or lack thereof. Over 20% of Millennials are unemployed and over 20% only work part-time.
3)    Student loan debt. Between the inability for many to get jobs in their field of study or even get a job, again is putting home ownership out of reach.
4)    Credit issues that resulted from not being able to pay student loans, medical obligations and credit cards.
5)    There are still millions of homes that are upside down. Their owners can’t refinance or sell and they are still paying high interest rates.
6)    The family structure has been forced to change; many millennials are living with family. I see 2 families living in one household to save money.

What are your thoughts? What must be done to correct these trends?

Image courtesy of stuartMiles/Freedigitialphotos.net

“Sometimes All the Questions don’t turn into Any New Business, but Sometimes they do”

“Sometimes All the Questions don’t turn into Any New Business, but Sometimes they do”

“I know I have been emailing lots of questions, but I really want to be a homeowner, can you tell, I’m very nervous about this whole process. I really appreciate you answering all my questions.
The agent that was referred to me by my friend is not helpful, she just doesn’t want to take the time. When I email her, I may or may not hear from her.
Can I set up an appointment to meet with you to get pre-qualified? See, I’m learning the lingo.”

Sure, it often takes a lot of time as many of the questions can seem very simple to us, but not the case with the person who is asking the questions. A few of her questions:
1)    Will I need 20% down?
2)    Can I rent a room to a girlfriend?
3)    Can I take money out of my retirement account?
4)    Do I have to owe any money on my credit cards?
5)    Can I use the same insurance company for a house that I’m using now for my car?
6)    There were many others

This process can be extremely challenging, so it is our job to take the mystery out of owning a home.

Image courtesy of Pakorn/freedigitalphotos.net

“Are You the Go To Guy for Your Client’s Needs?”

“Are You the Go To Guy for Your Client’s Needs?”

Very early on with my clients I establish a “go to relationship”. Below you will see an example of this client asking for another referral or recommendation.

I want my clients to understand that this is not a typical or average relationship. When a client first calls in to get pre-qualified I ask a number of specific questions. Who referred you? What did they say about me? I will then ask a few financial and credit specific questions. Once I have what I need and run credit we review the comfort level for a mortgage payment. Hopefully all works out so that I can issue a letter for them.

More questions: Do you have a Realtor or do you need a referral? Do you need a referral for a home inspector, insurance agent, attorney or title company, mover and so on? Depending on the answers I handle any referral that they will need. It doesn’t take long for any client to get the idea about how I work.

Good morning Joe.

First off thank you very much for the contacts you shared with Chris – panning out well.  I was hoping you could help us with a contact for a litigation lawyer.  We had a situation with one of our contractors who walked away with about $35K as he was using our money for other things so he did not pay for the windows, cabinets or his subs.  We would like to talk to someone to see if we have a case.  We wanted to check to see if you knew of someone as we knew they would be credible.

Thanks again for all your advice and help.

Image courtesy of stuartMiles/freedigitalphotos.net

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“Staying Married and Want to Live Separately”

“Staying Married and Want to Live Separately”

Three times so far this year this has been the situation. It is hard for a lender to get their arms wrapped around this concept. Some lenders just won’t do this loan, but others figure out a way to make it work. Underwriters want to know:
1)    Is there a divorce pending? NO
2)    Is there a separation agreement? NO

For whatever the reason, they cannot live together so they are doing something about it. Most of the time they want to stay near kids, but there are other reasons as well that have been shared with me that turned out to be more information than I needed to know.

One thing that is good about this type of situation, yes there is something good here, additional homes that get sold instead of one of them having to rent.

Image courtesy 0f stuartMiles/free digitalphotos.net

“Time for the Son-In-Law Take Over”

“Time for the Son-In-Law Take Over”

Always ask for the best way to communicate whenever you get an inquiry that comes from your website, no matter how they got to your site. When I ask how to best communicate it is asking permission. Over 50% respond with an answer, the rest is up to me.

Keith,
 
Thank you for your inquiry. What is the best way to communicate, phone or email?
 
How did you happen to get on my website?

Hi Joe,

Phone is definitely the best way to communicate.  My mother in law is XXXXXXX, she told us you were amazing and I need to know what I need to work on in order to get into a house.

Thanks,

Keith

Images courtesy of stuartmiles/freedigialphotos.net

“If You Don’t Know the Product Don’t Talk about it”

“If You Don’t Know the Product Don’t Talk about it”

 construction

“Also based on my income the last guy told me I was eligible for a 203 K. Does this apply for you too? Not that I want to spend that much but I might need a little more than $200,000.”

 Thanks Tom

 

Tom was referred to me by another mortgage company. I have been coaching him through some credit issues that are currently prohibiting him from getting a mortgage. He really wants to be a homeowner so is totally committed to do whatever is necessary.

 

The previous loan officer told him that because of his income he would be able to get an FHA 203 K loan. After speaking with him about his particular email above he told me that the loan officer informed him that he had to make over a certain income level, which is totally crazy. Sure income is a factor but the truth is anyone can get this type of loan.

 

There are two types of FHA 203 K loans, a streamline version which means that the renovations need to be under $35,000 and involve no structural changes and a full 203 K version which has no dollar limit, other than the county limits for total loan size.

 

Before too long Tom will be a homeowner and can stop paying rent.

 

Image courtesy of Tiramisustudio/freedigitalphotos.net

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