A Question on Foreclosure Advisors

Are there any subprime foreclosure consultants? What’s the difference between them and mortgage brokers?

Yes, there are. Just read the headlines. There was a study recently that showed that out of ten different subprime lending entities, only two were not performing as expected and were producing lower quality products than they should have been. I don’t know about you, but I am no fan of subprime mortgage loans, especially the tricky 2-term foreign national home loan.

Unfortunately, that was found to be happening more than you would think. It was a study by University of Iowa professor, Mark neighbours, and University of Iowa economist, Andrewipl Shelter Pocket, along with another economist, as well as myself and a couple of other real estate attorneys. I’m not a big fan of Prof. Andrew’s work, but I do like what they’re finding. That was certainly what I was told by one attorney who was an expert on the subject.

Let’s analyze. First, let’s look at mortgage brokers. Remember, we are talking about someone who is trying to make an investment and get a return on their money. An investment person must make decisions. They must take the long-term view. They must see the whole picture. Is this a long-term, $200,000 investment or a short-term, $100,000 investment? How do they do that? By taking your individual experience of buying, as well as the personal experiences they have had, both good and bad. They must look at your individual situation and determine what you’re comfortable with, and then they’ll go out and find the best option for you.

Here are my thoughts on subprime mortgages: They are a long-term, simple investment. The financial aspect is actually less painful than it may be. Even if you pay a little bit more in higher payments for the better rate, this is all part of the long-term loan. They are a simple investment to purchase that is easy to understand. The higher the return, the lower the risk. Plus, at some point, you’ll sell the home and make a big payday for your trouble.

Now consider the mortgage consultant. Or the mortgage administrative. Their job is to keep the customer’s loan “on loan,” but they’re not going to do that if they don’t feel comfortable that you are, indeed, a successful purchaser of their product. If the consultants are not sure that they can work with the purchaser, they will probably not produce the results they are looking for. As with any business, there will be ups and downs. That’s just part of the business. But it doesn’t change the fact that they must be able to produce a product that leaves their clients satisfied that is both satisfactory and profitable. 

A POW teammate is not used for anything good. It is there just for them to help him when he needs it. That’s why I like panel discussions in my training program. Panel discussion helps you to get out of that comfort zone and discover the things that you would never assume were possible by looking at the information on your own and realizing that it is possible. By doing that, you will demonstrate your willingness to help the client as well as yourself by working out the solutions if and when they arise. And by working out the solutions, your ability to get a good deal for your client is improved.

So the next time you are asked to appear at some panel discussion demonstrate your professionalism. If you don’t do this, you will be seen as being arrogant, having no skills and, it appears, being simply unprepared.

I can think of many, many, cases in which a Panel discussion on panel was completely wrong in regards to the product. What you present to the panel is not simply the Summit itself and it’s the background you are presenting. There is so much more that goes into form. I am begging you, see it all. Tell me what you think. Do I have good data that helps me make my arguments? I can hear you thinking, “Yes you just lack data and definitely lack experience.” But that’s really no excuse. If you lack experience, get one. Use expert witnesses. Be prepared. Be confident. You’ll suddenly find that you’re on your way to solid and reliable advice. There’s no reason why you should miss it.

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