It happened! A client was searching high and low on the interenet for a Minnesota mortgage and BAM!, he came upon my Active Rain Profile. Out of nowhere my phone rang to hear a familiar voice. It was a past client and was he ever happy to stumble into me again. He originally did his First Time Home Buyer mortgage with me 5 years ago. Since then, he did an AmeriXXXXt ARM with a pre-pay and high rate that just reset to 11.125%!!!
Personally, I send out quarterly postcards to my database....but once again I see first hand their ineffectiveness. When I asked him if he has been receiving my mailer(s) he replied a resounding "Yes". I prodded a little further and also asked him why did he not call before? He replied, "I received a phone call from the other bank (you all know the Tele-ARMY) and they promised this and that".
You never want a person to look at what they did as far as making a mistake, and from what this client told me, he is in enough trouble from his wife on why he did not call me originally for their refinance.
Anyhow, he explained to me how the Bank he was considering refinancing with (where he currently has his checking account) had an appraisal done with a $228,000 value and the quoted rate of 8.3%!! JEEZ! Some banks just will not learn! This made ZERO sense to me as the client had credit scores in the low 700's....
The problem is with the value. He took out a Home Equity Loan and wanted to pay this off with the refinance. Normally, we can only borrow 90% of an appraised value for cash out refinances. Using this math, I see that I clould only lend him $205,200 which is $12,000 short of what is needed to accomplish his goal.
We know we cannot receive a higher value, so I went to work with what was in front of me.
Hmm... IDEA IDEA IDEA....
YES! 95% appraised value cash out refinance FHA! FHA! FHA!
This has become a very popular home loan tool for many homeowners. Needless to say, this client did what we call a
"NO-COST" refinance where we pay all costs associated with the loan. Long story short:
1) The client keeps their home and payments dropped over $1,000/ month
2) They are now on a Fixed Rate loan
3) Their first payment is due February 2008, NO payment for December/January (roughly $4,000 they keep)
4) The client is so happy with what we accomplished, he referred 2 of his co-workers that are in the same situation.
I am still so puzzled as to what is the best way to keep in touch with our past clients. I have many many testimonials and "props" for doing outstanding loans, but dang it! Oh well, we'll keep truckin' going forward and always do the right thing.
Thank You Active Rain!!