mortgage plan: Crisis in Planning
- 01/31/09 05:08 AM
The reality is that every home investor in the country needs a plan to ensure their portfolios are best positioned to safely weather this economic downturn. Across the nation it is Mortgage professionals that are best positioned to assist home investors. Mortgage professionals manage the largest liability (the mortgage) and the largest asset (the home). Mortgage professionals also have access to more financial information about home investors than any other financial advisor. These two factors allow them to analyze the home investors' portfolio to searching for opportunities to increase the safety, decrease the cost, and create wealth. Mortgage professionals can … (0 comments)
So all of these factors have left us in the midst of one of the greatest financial crises in U.S. history. As the housing and credit collapses converge into a global crisis, we are faced with an economic downturn of significant but unknown proportions.Even though the financial future for the country as a whole is unclear, what is certain is that the economic crisis will have predictable results for various groups of home investors. While each home investor's situation is ultimately unique, from a macro perspective there are four general categories of possible home investors' situations. They can grouped … (2 comments)
Lets summarize the previous two posts in a diagram. The traditional real estate finance system is founded on the principle of providing debt to consumers. Providing debt to consumers who possess little financial knowledge about real estate and mortgage. These consumers are provided poor information upon which they make decisions about the largest asset and largest liability in their lives.
Read more about the Real Estate Finance System... … (3 comments)
So if home investors are working off of poor information, surely they can just turn to a knowledgeable advisor to guide them through structuring the largest investment in their lives. Well, not exactly. The reality is that mortgage professionals are required to have almost no education. That is correct, not even a GED or high school diploma is required to manage the largest investment in America. The shocking reality, is almost zero financial knowledge is required to manage mortgages.The small amount of education that is required in some states, is completely focused on the following on:1. How to process … (0 comments)
The fundamental flaw within the current real estate and finance system, is the lack of clear information and basic financial knowledge. In other words the flaw is ignorance. Now, ignorance does not mean stupidity, but rather it is defined as:
ignorance noun lack of knowledge or information
We must realize the vast majority of American home investors (in traditional mortgage language a home investor is called a borrower or consumer) are ignorant about their largest asset and largest liability. They make one of the largest investment decisions of their lives, based on the information found … (0 comments)
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