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The credit crisis aka the Wheel of MisFortune

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

wheel of fortune

Has the real estate market been your wheel of misfortune? Have you been made promises after promises? Have you bought into the hype of what one company or person might promise you, but at the very end, it's not even close to what they promised?

  • Does a realtor promise you a high listing price, higher than anyone else did in recent months?
  • Did a loan officer from a mortgage company promise you a great rate with low to no fees?


Currently we are in a credit crunch, no matter how you look at it. Credit card companies are losing hundred's of thousands of dollars. Mortgage companies and investors are losing the same. Are some of these individuals that you speak to, are they in the same boat personally, that they need to cling onto each and every client so they can make a living?

 

 

 

cycle of trust 

 

Trust...... ouch, such a powerful word, but one that is abused often. How can we trust? How can we take that risk and believe someone that we have never met before. Do we take one person's word over another? 

In mortgages and real estate, it can be easy to put your trust in the hands of a realtor or a loan officer. But what I don't understand is if you get a gut feeling that something might not be right, then why do you proceed with that person?

I spoke to a client recently that was going to go with another lender. I asked her to give me some details about her rate and costs. She really didn't know. When I asked about her rate, she said that the loan officer said, "about/around 7%".  And she said that she wasn't 100% comfortable in some of his answers. My question to the general public, why would you even go through with this then?  Even if your back is up against the wall, that you are in desperation, why?  Do you know that this will usually backfire and put you in a worse situation?

 

 

 

 

crystal ball

The same goes for in real estate. Why listen to a realtor that says they can guarantee a higher price than most? We all like to think that we have a crystal ball. But what about truth and honesty? Realtors have access to what homes have sold in recent months. This is how they determine a possible price for your home. A very good realtor is going to point out to you the market conditions in your area. They will show you homes just as yours and what they sold for. You can't always use a current home on the market, because it might be over-priced. Sure, condition of the property makes a word of difference also.

 

My whole point in regards to both examples?  Pay attention to such words and phrases as "I guarantee", "I promise", "no problem", "110% satisfaction guaranteed", etc, etc.  I have been doing mortgages for over 15 years and I can't make everyone happy. I even had one gentleman report me to the BBB because he was unhappy. He was unhappy because he thought I was getting over on him, when in reality, I was being 110% honest. And luckily I saved my proof of what I went over with him, with his signatures on it. I fought the complaint and one.

 

 

 

 

You want my honest opinion?  Those in real estate and mortgages that give you a lot of information upfront, before you even ask for it, are the ones that you should be paying close attention to first. 

I just had a client last week tell me that I was the 6th lender that she had spoken to. After 15 minutes of speaking to her, she said that I moved into the number 1 spot. I said, may I ask why? She said, "because I answered most of her questions before she even had a chance to ask them."  Meaning I basically gave her all of the information upfront for her to make an educated decision. I didn't hold anything back nor did I have anything to hide. Or was I afraid to compete with other lender's fees and rates. A solid real estate professional or mortgage professional understands this.  Just keep in mind what I have talked about, because you might come across this, thinking that you will be fine.

The average sales person doesn't like a client that is educated and fully armed with answers. The true professional actually loves it, because it makes his or her job much easier. And because they know that you know all that you need to know, to not only make a solid decision, but because this is how they operate and can sleep at night.

 

 

 

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Copyright © 2008 by Jeff Belonger

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
I liked your presentation here... sound advise and great examples...thanks.
Mar 09, 2008 08:26 AM
Dan Forbes
Bradenton, FL
Jeff, Hopefully readers will take heed to your good advice.
Mar 09, 2008 11:55 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Great analogy....as a "by the way" wheel of fortune just came to Chicago this week.....wierd timing.  Great comments....I love the "wheel.
Mar 09, 2008 02:16 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

You know, we've all been burned by someone, at some point in our lives. And many people carry that baggage with them forever. But at some point, we have to realize that we have to keep trusting, or we end up being bitter, angry, miserable old people. But if we learn from our past experiences, we gain wisdom, and learn who, when and how to keep trusting =)

 

Mar 09, 2008 03:58 PM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.
This is so true.  How many people wondering what they are going to do with their home/mortgage wish that they could have dealt with someone like you instead of the lender that simply gave them what they wanted.  Lower payment, lower rate, no closing costs, etc. could have been what they thought that they wanted but they didn't have someone like you to weight out the pro's and con's with each to really help them manage their debt properly.  Great diagram, especially the "Shared decisions" section.
Mar 09, 2008 06:36 PM
Don Draughn - Mortgage Professional
High Point, NC
I couldn't agree more, Jeff.  Today it seems many people are willing to listen to the ones who tell them what they want to hear instead of what is fact.  Hopefully, the crunch we are in will someday weed out the agents and LOs that work that way and people will begin to trust those of us who tell them like it is from the beginning.
Mar 10, 2008 12:44 AM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Jeff,
Clients deserve all the information up front and it is our responsibility to make sure they have it.  To make intelligent decisions, people must have all the correct information.  
Mar 10, 2008 01:15 AM
Kent Simpson
Realty One Group Mountain Desert - Tucson, AZ
Real Estate Is About People
Consumers are so used to the "Dog & Pony Show" that upfront information, straight talk and sincerity are something unique and startling.  I had a client actually get shocked when I recommended a lower-priced property to them because it fit their needs better than one with a higher sticker price.
Mar 10, 2008 01:32 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Give it up front so they can decide, you can decide if it is fit. I so appreciate lenders that do this.
Mar 10, 2008 07:14 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

SALLY....  thank you very much and for the polite comments.  I just want to make more consumers away out there, period. In all honesty, it shouldn't be that complicated. But so many people in our industries think of their paycheck before the client. Or, they just don't know any better and / or are knowledgeable on their industry.

DAN.....   thanks Dan.... that's what I am hoping, hence why I wrote it.  thanks

LARRY....   thanks for the compliment.  I always liked the "Wheel" show.....  I liked guessing the words.  And yes, what timing, considering that I just wrote this post... lol

LISA....   you make a good point. But let me come back at you.  Being burned many times... how and when do you trust then?  No matter what someone tells you.  It's not easy, especially when you are talking about finances. I have heard a loan officer tell a client, "trust me, don't worry", knowing that this person was burnt more than once.  And they weren't being 100% upfront and honest. I honestly can't blame the consumer for not coming out of their shell then. Yes, they need to begin to trust, but can you blame them for being over cautious? 

MARK.... the question comes down to.... "how do I pick someone?"   "Who do I pick?"   Sure, referrals are good, but they aren't always the best also. I have seen some people use someone that was referred to them and that person dropped the ball. I think I gave one example that this same person dropped the ball twice, in a 3 month period.   Overall, thanks for the kind words....

DON....   isn't it easy to listen to what you want to hear anyhow?  And sales people use this to their advantage many times. Is it right?  no....  I think there is a good median with this... but so many people abuse this.  Overall, I love it when a client tells me that I gave them answers to their questions before they even had the chance to ask me them. That tells me that I went beyond the call of duty and that I was upfront with them.

CYNTHIA.....   I agree, hence why I wrote about this.  I just hate when a loan officer doesn't disclose very important things such as rate, payment, and costs....  these are part of mortgage 101.  thanks for stopping by.

KENT.... yes they are... but in all honesty, do they know any better?  Are they able to tell when they are getting BS or when it's the truth though?   In regards to your comment about recommending a lower priced house and they were shocked... this is a good thing and you were upfront and honest about this. That should go a long way.

MISSY.....    I even know a great lender that does this and you know him also...  ;o)  But yes, give the information upfront. And because of these comments, I am writing a follow up blog called Mortgage 101.  thanks

 

Mar 10, 2008 07:44 AM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.
Jeff, based upon your "Cycle of Trust", I don't think anyone fears referring anyone to you!  Awesome diagram by the way, I already am starting to re-do my intro to better explain to clients how trust cycle benefits everyone.
Mar 10, 2008 08:19 AM