Quote of the Week:
Vision (I made “vision” realllly big because it takes as much energy to think BIG as it does to think small. Pretty cool, right?)
“People who say that life is not worthwhile are really saying that they themselves have no personal goals which are worthwhile. Get yourself a goal worth working for. Better still, get yourself a project. Always have something ahead of you to look forward to…to work for and hope for.”
Dr. Maxwell Maltz
Author and Psycho-Cybernetics
The inspiration for my video this weeks comes from a very personal story of mine that happened last week and it has everything to do with asking the right questions of your paid professional before AND during the loan process. A great point that I mention in my video this week is the importance of knowing what your trusted advisor is going to do for you AFTER your escrow is closed. I mean, don’t you want to know? If you are working with someone who isn’t a cheerleader for what his/her company does for their clients after a transaction is closed, well, I hate to break this to you but, there probably isn’t a whole lot that company AND that person has to offer you by way of continuing education and debt management. It’s an unfortunate part about the mortgage industry. We are doing our part to fix that problem!
Please take a few minutes to watch this video (that was supposed to go out two days ago….arrrrgh!), then read the rest of my email:
http://www.vimeo.com/1125901
For anyone that’s asking the question, “What on earth could a loan company or mortgage consultant do for a client after a loan is closed? After all, the loan is closed…what else is there???”
Answer: A LOT, A LOT, A LOT! Let me give you just one example. Imagine if every single family that borrowed on a “sub-prime” or “prime” loan were invited to meet with their debt advisor in person or by telephone at least annually to discuss their overall debt management plan? That discussion would involve:
- Reviewing the original plan and what the original commitments were
- Where they were, where they are, and where they AND their loan is going
- Whether or not the family is feeling any financial stress and if so, addressing how to improve the situation,
- Getting to look at their updated credit report
- And most importantly, addressing all questions and concerns regarding their overall financial plan
Loans and the times we are in are complicated, right? People are wondering what’s going to happen. I mention in the video the importance of knowing the answers to these questions before you ever sign anything! For some, it’s too late to turn back BUT, it’s not too late to get educated on what you’ve already got!
So, back to my point. IF the person or company that originally helped a family obtain the mortgage they currently have offered this kind of review at least annually AND actually knew what he/she was advising on during that review (an important piece of the puzzle by the way), do you think that the foreclosure rate and delinquent borrowers would be drastically lower than the record high numbers of today? Now keep in mind, just because an advisor offers an annual review doesn’t mean that the clients will take advantage of this service, which in my mind is financial suicide but, hey, to each is own. An advisor can’t force a client to do anything.
For those who attend an annual review and take it seriously, the excuse, “I didn’t know what was going to happen to my loan in “x” years” should theoretically never happen! I say theoretically because not everyone has the accountability they should have and will always be a victim to their circumstances even if they were the ones that put themselves in that situation. Two words: Government Bailout. I’ve done reviews where I have said point blank, “It’s time to sell and rent. The commitments that were made a year ago are not happening and I’m afraid that you may lose this house if you don’t make some major changes.” I have no problem giving that type of advice at all. A true and trusted advisor tells a client what they need to hear, not what they want to hear. Now imagine that your neighbor from the down the street that just filed foreclosure while at the same time lowering YOUR home value in the process was given that type of valuable advice a year ago! Think things would be different? THAT’S what a mortgage advisor can do AFTER the loan is closed. I hope you’re getting what I’m saying now. A true mortgage and/or asset manager earns their income after a transaction is closed, not before or during. This housing market is precisely why it’s so very important.
Oh, by the way, several people have called me lately to tell me that their original broker / company has gone out of business. No problem, I’ll do reviews for anyone even if I wasn’t the one that originated the loan. I just recorded a video for our website talking about what’s involved in an actual annual review. It should be posted next week at www.silverstarfinance.com/annual_review. You’ll also be able to sign up for this service online very soon!
Referenced in the video:
Events Link: www.silverstarfinance.com/events
I hope you enjoyed this weeks 2 cents.
Go Lakers! Booooo Boston…Booo!
