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How did I lose that client!!!!

plane crash

Every now and then I am sure many of us, even after going the extra mile, just can't seem to capture that one particular client. This goes back to a client of mine that was recommended by a realtor, but at the end, wanted to choose their own mortgage company.

Was my rate higher? Was my service lacking? My follow up not up to par? None of the above. Quite frankly, when they told me that they decided to go with another lender, who was actually a local bank, they said they were impressed with my follow up throughout the process. My rate was even the same and they had another fee that I didn't have. So what was the problem? The issue?

Free airline tickets to Hawaii. And even when I interviewed these clients, they told me that they had a time-share in Hawaii. Client: "This would be just perfect. We can go there for free now". me: "Something doesn't sound right, because there are usually clauses for such free airline tickets, free trips, or free rooms. Be careful." Client: "nah,he was nice and even showed us the tickets. And your deal was just about the same as his. Thanks for your help." Me: "well,good luck and I wish you much happiness in your new home."

Well...I was thinking something would change prior to settlement. Even though they were a local bank and had a good name, nothing happened.

The day of settlement: I get a call from the realtor who explained this to me. "We all sit around the table. The listing realtor is even excited and had asked for his cards prior to the signing of the documents. My realtor says that there were cards all over the settlement table. The loan officer starts to go over all the closing documents. They get to the HUD, nothing has changed. Rate is the same.... the fees are the same. Sure,they were about $350 higher than me. Not a big deal, free airline tickets to Hawaii. The loan officer stands up and hands them the tickets in an envelope and states that he needs to leave now, that he needs to get to his next appointment. Everyone has smiles on their faces. He leaves....the clients open up their little gift... free airline tickets.

Should I continue? Well... the tickets are there. They start to read the disclosures attached to the tickets.... Oops... These tickets have to be used in conjunction with x,y,z hotel in Hawaii. Clients: "what? how dare he. He knew that we had a time-share and that we could use the tickets to make our next trip this summer." Realtors sitting at the table: rip,rip,rip.... tear..rip...tear... the sound of all his business cards getting ripped up!!

Moral of this story: Nothing is ever free. Market yourself, your service, and just be yourself...be upfront.

By Jeff Belonger of National Future Mortgage. "Meeting all of your financial needs for home ownership" jbelonger@nationalfuturemortgage.com

Posted by Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans on 12/09/2006 09:25 AM

Comments (62)

real estate, mortgages, cherry hill, haddonfield, jeffmortgageman, zerodownmortgagesbookcom, educating

62 Comments on How did I lose that client!!!!

DEC

2006

LOL I remember my Econ Professor, Dr. Burke on my first day of the Intro Class - he arrived in an elegant rush, threw his briefcase on the table, and wrote on the board "The Fundamental Rule of Economics is: There Is No Free Lunch." Talk about a statement that was so true! Love the graphic too!

Amen! and I might add....don't pretend to be someone that you aren't....a false facade soon becomes clear window!

Carole... thanks for the comment. Maybe all clients buying should go through one class like this... ??? lol And thanks for the compliment.

Ron.... yes Ron, but usually after the fact,when it's usually to late.

Jeff~ This example can be a good lesson in almost any business. Know who you are, and what you stand for. Don't ever compromise that....like Jeff Turner said in the blog above....it's part of your brand.

There was a company, here that offered FREE cruises ... but there were so many restrictions and stipulations that it actually cost people MORE to use the FREE tickets than if they were to go about it on their own.

Nothing is FREE - except a good attitude.

Jeff,

Look like Air RESPA.....

Laura... thanks for the comment and yes,I am going to read Jeff Turner's blog next.

Mariana...... thanks for stopping by and the added info... and yes, attitude is another key point.

Scott.... funny...lol Thanks for the laugh.

Hi Jeff,

This has happened to me a few times, specially with clients that are rate shopping (nothing wrong with that!) It's very difficult to overcome the fact that some people are looking to get the best deal in town. I often think to myself Best rate? at what price? But I think by being honest and upfront with clients they will realize who gave them he best deal after all. Sadly is often at the closing table. The good news is that some of those lost clients, have come back and they have been so loyal ever since.

Wow, what a let down for those clients, and you. It's amazing that some people can stand to be in the same room with themselves!!!

Blanca.... sure, there will always be rate shoppers. And in all honesty, I don't even get involved with the fact that 30% of the time,that good faith estimate doesn't mean as much as it should. It's sad. But most of all...when you actually know that you are deceiving a client flat out. And many don't come back to me...just for the fact that they might feel embarrassed.

Chris..... I actually mentioned a little of this in the comment to Blanca. What's scary is,I have many people to feel good about themselves after this...can stand in the same room, look themselves in the mirror, and sleep well.

Luckily we all aren't like this... thanks for stopping by.

Oh, the price we pay as long as it's "free"!

Jeff, I hear about this at times. And I even hear loan officers talk about this. It's ashame. I get so much in the mail in regards to free things.

Isn't it sad that the clients were naive or worse greedy and in their hope for "free lunch" they deluded themselves. What happened in our country that made it alright to complain after the fact, after the client took it upon themselves to choose merely for the sake of greed.

My upbringing must be different. I was taught to do unto others and seek the win-win ... This client hurt themselves .... Your classy and professional response was admirable keep it up

Silvia.... it's good to see you still around. Everyone..Silvia is some what new to AR. Thanks for stopping by and for your comment. And yes...I agree... ;o)

Jim.... thanks for stopping by. The mail kills me.... so much is free, or is it?

Steve....thanks for the polite compliment and for your 2 cents. And yes,you would think it would be a win-win, but not always.

Also...Steve..from what I can see,welcome to Active Rain...

Jeff, what a bummer! I'm sorry that happened to you. The only saving grace is that the client was taught a lesson and if you follow up with that client on a regular basis, they will more than likely do follow-up business with you since they learned a lesson. There could be a shinning star lurking around the corner, for you!

People will fall for anything!

At least those free tickets sound good!

An AE called me the other day to remind me of her company's great new promo: a $100 Home Depot gift card with every HELOC. That is truly pathetic..........

I'll try not to add any cliches, though tempted. The truth is some people just won't listen when we tell them the truth, and suffer the consequences. C'est la vie.

Gena..... hey,things happen. I was bummed when it happened. But as I tell so many people.... sure, I wish I could do every mortgage. But that would be physically impossible. Besides, where would be the challenge in trying to capture that client. Thanks for the comments.

Marc...... yes they will. But in all honesty, can you blame them? Especially when that sales person sounds so honest and sincere.Just someone good at selling lies, but not product.

Michael..... yes,I agree... and there is nothing else to add to this. Just hoping that more clients read examples as this. thanks for stopping by and for the comment.

I echo Carole's comments but will attribute it to the late, great Milton Friedman; "There Ain't No Such Thing as a Free Lunch".

I guess I have one question...Why didn't you offer the free airline tix (with a higher by origination $350 fee) if that's all that was holding the deal up for you? It's legal, it's tasteless but it would have gotten the customer what they wanted and you a loan.

Brian.... 2 things. Did you understand that this client has a time share? And by using the tickets, they wouldn't be able to use their time share.They would have to stay in a hotel.

2nd....I just don't play this way. I shoot straight from the hip. Thanks for stopping by and for the comment. Especially the quote from the late Milton Friedman.

Well there's a reason for 'referrals' and more often than not its a good business referral. I refer to certain lenders because they can close. Unfortunately, some people may still be swayed by a false trinket or two. Its the world we live in.

Funny line, K... "false trinket or two".

Jeff: I did understand about the catch on the airline tix. I would have weighed the $900 cost for the (unrestricted) tix (and the $350 higher fee) as a cost of doing business. My conclusion, most likely, would have been the same one you reached.

Did you try to offer them a pen?

Kaushik...... yes, there is a huge reason for referrals. But I am sure that we have heard the horror stories of referrals also.... or doing business with family members,friends of friends... etc etc.

And as Brian Brady stated.... I love that comment of the "false trinket or two" Good one...

Brian.... I know doubt would know that you would have had the same conclusion as myself. I didn't weigh anything though. I don't give up easily.... but I also don't flaunt false advertising out there or biggest of all.... "False Hope"

Pen? no.... I offered them their own plane so they could go to Hawaii anytime.... lol

In reality, what I had offered them was superior service, which is priceless.

Jeff

If people don't come back because they feel embarrased, don't let them be embarrased. Show them you still care about their financial goals, wether you have been the one selected to do their loan or not. If I have lost a client, I still keep in touch, many of my co-workers said is a waste of time "why help them if they didn't choose to do business with you?" I am always there for them, in case my competition drops the ball. If you where honest with them, they now have a very bad taste in their mouth and won't even think of going anywhere else and will stay loyal to you.

People learn by experiencing these situations. THey knew you gave them excellent service and rates. THey feel like they owe you something, they will send you referrals you watch. These gimmicks are bogus.

It would have been even funnier if the tickets had required them to sit through a time-share presentation!...

Sounds like a bait and switch to me.... could they have sued him for decieving them?

;-D

Blanca...... I agree with most of what you had to say. But there are just some people that you would never be able to please or make happy. You can keep in touch with them all you want, it still wouldn't make a difference.

Don't get me wrong. I still try, but sometimes you just have to know when to leave them. Just my opinion.

Eddy..... just like I told Blanca, some people just never learn. I am not trying to sound negative. It seems like most of us in here love to help people and go the extra mile. But you will just bring yourself down if you spend all of your effort on these people.... and they just don't appreciate it.

Rich..... now that is funny and would have been awesome... or in this case, priceless. thanks

Alexander...... I am sure there is always some type of bait and switch when it comes to something like this. When they advertised this, I am sure there was something in small print. Most people don't read the small print, hence the reason why it's small. Sure them? Not in a 100 years, but they might have some type of case to the bank, if it wasn't written any where...small or not. thanks for stopping by.

I have one lender I recommend. Never had a house not close. No one can beat his rates.

I worship the gound he walks on because he makes me look so good.

A good lender like a good home inspector makes me look very smart.

Lenn..... I am just slightly confused on what this has to do with my post. I do appreciate you stopping by. And you state that no one can beat his rates. That might be a challenge for me because of how I operate. I own my own branch, meaning that I can give what I want. And which means that I could beat just about anyone out if I wanted to. And if that were the case...how could he be the best,have the best rates? lol Sorry,I am just confused what his rates have to do with what happened. If you read it,you would notice that I was cheaper than the bank, by $350..... and it might have even been an 1/8% in rate.

thanks

Again... I wasn't trying to be rude with Lenn stopping by. If I am missing something, please tell me. I would truly appreciate it.

I respect your opinion Jeff, I had to fire one or two clients myself. Like you said, sometimes no matter what you do or offer they still will choose to go somewhere else.... I guess some people like to be fooled, it makes them feel smart. LOL

Blanca.... I wasn't saying anything was wrong with what you said. I just know I physically can't police or so-called babysit each client. As so many have said...time is money. And not every client is going to appreciate our follow up.Not to sound full of myself, if they do appreciate me and how I handle things, they would make the effort to come to me or come back to me. In some cases, you shouldn't have to dangle things in front of them or be in front of them all the time.

Me? I am loyal and people that I do business with, don't have to keep their face in front of mine. I am not one that says, "out of site,out of mind." Me? "if you have done a good to great job, you have my business for life."

I love that Rich!!!

Jeff, I have not run into this, and hope it does not make its way here. But this goes to show that if sounds to good to be true, it usually is. However, I would not expect that type of thing from a bank, especially if it is a local bank with a good name. That was a hard one to see coming

I've always say to customers . . . be sure to read the fine print. When I get sales people calling me to offer me special deals for my client like 'a free cruise' I always ask them - what's the catch. If my customers are getting a free trip to the island, then there should be no out of pocket cost. That's the bottom line.

George.... do you live in the United States? LOL Do you live in the same town such as,'It's a Wonderful Life'? You have been lucky then..... and yes, what Rich said, was funny.

Netta..... I know about the bottom line. But I see so many people feeling comfortable with that sales person, that they just don't read the fine print. It goes with trust and some people seem very trusting or trustful, which means they can get away with this easier. Thanks for stopping by and for your input.

Jeff, I wish more people thought the way you do... rewarding those who are deserving with your loyalty. "Old-world" values are rare these days and I cherish the few people I come across in my life that display them. Unfortunately, your client was a bad judge of character and bet on the wrong person... his loss. The sad thing is that sometimes these clients, even after having experienced what he did, will not refer others to you just to "save face" and not be reminded of what a fool they were.

Its a happy day in the neighborhood.....LOL

Good post, Jeff. Sorry to hear about how things ended up. But it serves as a reminder that if it sounds like a deal that is too good to be true, it probably is. It's always interesting what drives some people - the carrot can do the trick for many.

Leanne..... thanks for the kind words. In regards to my loyalty, it's just my personality. Besides....I was a very ticked off loan officer the first 6 years of this business, because I never got that kind of respect. I was told by many realtors, that I out performed many of my competitors and even those that they would refer business to. I would then get referrals from some of these realtors... but then they would stop. It was that out of site out of mind theory. And I just didn't understand it at times, if I was on top of my deals,making sure thay they closed.

In regards to those clients...yes,their loss. But also my loss, because no closing = no money. And no referrals... yes,I am sure many think like this.

Again, thanks for your kind words and for your comments.

George & Jeff.... you snuck in there... you both flew under the radar as I was writing to Leanne.

George..... well, as Adam Sandler was told in his movie, Happy Gilmore..."find your happy place"

Jeff.... thanks for the polite comment. And yes, that carrot can sure lure them at times. Especially when that carrot is actually a fig, but just disguised well. ;o) Thanks for the comments.

Of course, Jeff... it's your loss as well. Let's hope he's one of those rare clients that not only learned his lesson but wants to make up for the fact that he chose the wrong loan officer by referring others to you.

Great graphic along with a great story Jeff. Where do you find these things?

How common is this practice in the mortgage industry Jeff? And, what advice can you give to a buyer to help them from falling into the hands of a dishonest lender?

DEC

2006

You didn't lose a client. You lost a prospect.

Leanne..... well, as I say sometimes....such is life. As Broker Bryant says.... forward movement. Overall... stay positive and move forward. thanks for the comment.

Bob....... thanks for nice compliments. It's not that common, if I had to try and gather a percentage. I have even seen on a few web sites, mortgage companies offering free cruises.

What kind of advice?? That's tough Bob.... gee, I felt like I am on a game show or being interviewed. But seriously..... as so many of us have said, nothing is free. All the way down to a lender advertising a free appraisal,a free this or a free that.

My advice.... shop against 5 companies then. Have 5 good faith estimates. Try and remember EACH conversation that you had with all 5. Don't always jump to the person with the lowest fees and rates. Try and remember who actually asked you the most questions. Asked your about your Goals. Use your gut feeling a little and pick that person that sounded least like a salesperson. A good loan officer will also give you options and not just what you asked for.

Angela.... thanks... but I am not always sorry because it gives me examples to not only share with everyone here, but to share with clients when they approach me about this. I can easily look them in the eyes and tell them to be careful and what to look for... why? because I have experienced it also,along with my client at the time.

Russ.... well,thanks for the clarification. But at the time, it was my client, because we were half way through the process, when they jumped ship per se. thanks for stopping by,

Sounds like that client needs to put a little legal pressure on the bank to provide them with tickets that actually are what the bank claimed they were...

Tony.... they were.... they were free tickets to Hawaii.... nothing more and nothing less. I do appreciate you stopping by.

But everyone.... think about it... in all honesty, I wouldn't have to be honest and upfront, as long as it is in a disclosure...may it be large print, small print... you could scream bloody murder that I didn't disclose. But as in all disclosures... if you sign it and it's on that paper..... all you can do is make noise, but it's not easy getting around this.

No...I don't do this, but in regards to the clients that this happens to...they don't have much recourse.

Hi Jeff..

Good post. had me on the edge of my seat until the end. I was almost afraid it was going to get cut short!

What else can I add that hasn't already be said in the comments above? I like the comment about offering the pen. hee hee. How about a shiney nickel?

Well, I'm sure you knew, but I'm sure it feels reassuring and good to know that you beat the bank by $350. Now just drop those new homeowners a postcard so they can refer you in the future, even they didn't use you, I'm sure that they realized that you were a 'straight shooter' after they closed. I commend you for your honesty. Sometime nice guys finish last, but as least we have our dignity and self-respect. I dont need a new yacht!

gotta go now, i have to go and ask my wife to turn the hose on and splash some water on me and my boat (with no motor).. yoo hoo, seas are huge today.. Splash some more honey... yoo hooo.. can you rock the trailer a little honey? yoo hooooo

Hey Nick.... thanks for stopping by and for the compliment. 1st timer in one of my and I appreciate that. I have read many of your comments and enjoyed what you bring to the table. At least in regards in getting a discussion a jump start.

Yes, the pen comment was funny, but can be sad, if that's what people look for when wanting to do business with you. That could be a very expensive pen.

Again... thanks for the comments.

Jeff,

I finally made it. One of our giant oaks decided to fall, and I have been out cutting fire wood most of the day from that tree.

Anyway, I read all the comments and it seems that most everything has been covered. The only thing that I can possibly add is when we know that we have done the best that we can and still loose the deal, there must be a greater reason/power at work. When I first started in this industry, I took these losses personally. Now, I brush it off, say I did the best I could have done, and moved on as there was a reason I was not meant to have that deal.

As for those people that use "freebies," I just view them as a weaker salespeople that need help to close the sale. And unfortunately, there are some people that do the deal just for the "feebie."

Jason.... thanks for the comments and for stopping by. I don't always necessarily would say those that give away freebies are less than a salesperson... it's how they use them and don't disclose all that they should. Just as in this scenario...knowing that in order to use the free airline tickets, they would have to stay in a particular hotel and not of their choice.

I'll be honest and say.... if my companies in the past did this for me, I would use it.... wouldn't you? Again, doesn't mean that you aren't good at sales though. again, thanks for the comments.

Jeff,

If I had a "freebie," I would rather use it as a thank you than as an incentive to get the deal. I would not openly advertise that if you use me, you get this. If I did work for a company that offered them, then that is the company doing it, not me. I would try to sell the deal without mentioning that freebie that the company offered. But, yes... if the company did present the offer and the clients knew about that offer, I would make sure that they understood every aspect of that freebie (and in essence, what it will cost them to use it as in your scenario.) If I did not disclose it, even if it were written, the client would hold it against me. It would mar my image and reputation for that client, and thus possibly lose them as a referral source.

Jason.... we are on the same page..... and not to sound conceited, but as good as I think that I am.... I still would use any tool that would be at my disposal and think nothing of it. Meaning... hey, if I get some business for it, great. There is nothing wrong with it. Especially if my company would pay for it.

Now....I will say this... I do mock those that have free cruises on their web sites... I have seen one mortgage company that has a monthly drawing and if your name is drawn, that mortgage company makes your monthly payment for you. Talk about trying to get people to your site.

Anyhow.... thanks for commenting again.

Jeff,

Too many comments to read as I am late again to the party. Great post. I wish people would stop getting suckered by the BS used to market their crappy service. I once thought about adding this type of FREEBIE, did my research and found out how "Not free" they really are. My reputation is too important to get caught up in this "smoke and mirrors" or "bait and switch" tactic. Just thought i would add my 2 cents.

Robert.....thanks for the comment and for stopping by. And yes, it can be a little costly. Sure, I am sure you could get some great deals, but the cost will be passed onto the client.... I don't care what people say. Your 2 cents were millions. thanks.

DEC

2006

Jeff, this is so true. But sorry it had to happen to you. But I guess we can learn from this, even if not your fault.

Jim.... thanks for stopping by. and yes, just to learn from this to grow from and to help me out down the road.

DEC

2006

Jeff - you can't control that kind of stuff. That client knows better now and so does the agent... they will spread the word. We (agents that is) are under a constant barrage of pressure because of other companies/agents offering kickbacks, freebies etc...

You choose your road and walk down it, head held high.

Moo

Angus... aka Moo.... thanks and I agree. When I first started out in the mortgage industry, the first 4 to 5 years... I took thinks like this personally. It's actually good to have an example like to this to have happened to me. I can sometimes use this to my benefit.

Thanks for the advice and for stopping by. Jeff Mortgage Man

DEC

2006

What a story Jeff. It just goes once more to show why the public thinks that "mortgage brokers have a bad reputation". We've talked about this plenty, but it is because of guys like this that the public has such a bad perception of mortgage brokers (it's the same w/us Realtors).

This post reminds me of my constant question of why mortgage brokers don't show up at closings... In 6 years, I have had only two closings in which the mortgage broker was present (I always am).
I think it is so important that the buyers get a thorough explanation of their loan package. I mean, who better to explain a loan package than the mortgage broker, but instead, you have a closer going over the docs as quickly as she/he can speak and you look at the buyers and they have this I-don't-get-any-of-this face. And if there are any mistakes, omissions, delays, whatever, guess who it's all blamed on? The mortgage broker, who is not even there to defend his/herself.
If the guy in your story had stayed at the closing, at least he could have defended what was left of his reputation. I guess he has sooooo much business he doesn't care...lol

Yael.... what I was actually trying to say is that the loan officer left at thye end of closing while giving the tickets in an envelope. In my opinion, her knew they were going to be upset, hence the reason why he was leaving. I don't think he cared about defending himself.

I go to most of my closings in the area. If it's an out-of-state closing, I tell the client to call me if they have any questions. They always have my cell phone. And I always make sure that the realtor and title company or lawyer has my number also. Hey.... if we did enough business, I would flyu down. ;o)

Thanks for stopping by and for the comments.

Yael...question and we'll talk later. But how far are you from Vero Beach, St. Port Lucie, and or Ft. Lauderdale. thanks, jeff

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