Debt Freedom including your Mortgage? Dream or Possibility?

“Close your eyes and dream…….. What would it be like to be debt free?  Yes, even your home is paid for in full.”  What if that date wasn’t thirty years from now, but 12, or 10, what if it could be 8? Although you may be thinking that I am on my patio daydreaming and maybe even a little off my rocker it can be done. Your Grandparents or parents are proof that it can be done. So am I simply talking about Fiscal responsibility? Probably not? That seems to be frowned upon in the United States today. I am a firm believer in learning fiscal responsibility and if their is a tool that will coach you through the process that is a effective why would it be a bad thing?

Consider you are driving from Roseville to San Francisco but along the way you exit 12 toward Napa. This is definitely off course. However, most of us now have some form of GPS to alert us of the misdirection and recalculate our next move to insure arrival. The tool that I am going to speak about can be considered a Financial GPS. A tool that if you happen to get off course or life happens and you are forced to go another way (detour if you will) it will assist you in re charting the course. GPS, a coach, a mentor offers peace of mind. It allows you to focus on the important things while all the details are worked out for you. Peace of mind is valuable. So valuable that it can hardly have a price tag. After all I think that peace of mind is what many of us strive for. Paying off your home offers peace of mind.

Dennis and Cheryl Harris

As many of you may already know and for those of you who do not know I love meeting new people and seeing what they have to give back to the world. I do not freely endorse or promote anyone or their product without the opportunity to get to know them a little as a person.  Any product that is revolutionary can also be controversial. However the heart of the business person presenting the product is what I look for. I had the great opportunity to sit down both Dennis and Cheryl Harris on Thursday evening and learn about them. What I came to find out about them is that they are amazing people. I have met many U-first agents and asked the very questions I am going to summarize below and I have got all sorts of answers. None of those answers showed the level of genuine interest that I felt from Dennis and Cheryl. They were not selling me the product that they have. Instead they were sharing with me how it has changed their life. I could sense the peace of mind that they have in knowing that the financial gps they hired will keep them on course to realize DEBT FREEDOM. I would encourage anyone who desires debt freedom to sit down with Dennis and Cheryl and allow them to share with you their story.

Here is what we talked about

Matt: Considering the fact that America promotes Fiscal irresponsibility (cash for clunkers) and refuses to teach in the school systems how money works how do you explain and overcome our hard wiring to leverage and finance our  Dreams?

Dennis and Cheryl: There has to be a paradigm shift on the way we view our money. The first question is how is what you are doing right now, working for you today? If you continue to do the same thing will you achieve peace of mind or freedom from your debt? If you are serious about getting your debt paid off and someone shows you the way it is hard to ignore.

Matt: The cost of the product can be quite substantial. A Garmin or Tom Tom can cost about $199 but this “Financial GPS” is $3500. How can someone who is looking to become more fiscally responsible justify spending this much?

Dennis and Cheryl: $199 for a Garmin saves you the time and the gas of getting lost. It helps to increase the quality time that you will have once arriving. It is an investment into the quality of your life. Although the cost of the U-First Software is $3500 dollars the savings can be hundreds of thousands. If I said you can invest $3500 and yield a return of $200,000 and show you this with factual numbers would you not invest the funds? The investment is a fraction of the return.

Matt: If the system no longer used a Home Equity Line of Credit and now is done through the use of a checking, savings and Credit Cards, What happens if the consumers credit card balances are reduced to the current balance? This is quite common today.

Dennis and Cheryl: Although the use of the Credit card is a factor and part of the program it is not reliant on the card solely. The program works to help you also pay off your debts such as auto loans and credit cards a s well as your home. The upgrades that have been made include total DEBT FREEDOM not just the home. If you follow your financial GPS it will again help to reduce the balance on the card regardless of the limit so that you will free up space to use the credit card as necessary. I understand the concern, what happens if things change to the point the program no longer works. I lose my job or my investment income dries up or… The Financial GPS will recalculate and get you headed back to San Francisco. It will also tell you if you don’t have enough gas to make it to S.F. and how long you will last at the current spend rate. The system is based on interest cancellation and is a result of money movement in favor of the consumer not the bank.

Matt: I think that it would be hard to hear about this product and not get excited. However, each year on the first people get super excited about working out and losing weight. That last the first two weeks of the year and then they fall flat on their face. How would this product be any different than the elliptical trainer sitting in the corner of the room with dust and clothes draped all over it?

Dennis and Cheryl: I would love to see the stats on those that hire a trainer and see how long they last. I would bet that those that have a coach and an accountability partner have a much higher success rate than those who do not. This program comes with not only great math behind your financial decisions but it also comes with Cheryl and me. We are a part of the process. Once you’re on this trip to financial freedom we are along for the ride with you. As much as you will allow us we want to walk this road home with you. We are just a phone call away and we stay in touch with our clients. The program requires desire. Remember I said at the beginning we want to partner with people who are serious about becoming debt free. However, the program requires discipline. All great things require discipline and obedience. To achieve DEBT FREEDOM you will have to make some changes in your life in the way you manage your money– changes that don’t affect your life style very much, but do affect the handling of your money. (Cheryl) I’m always encouraged by the graphic interface that shows our years to pay off, remaining interest to be paid and the date we will be out of debt coming down. U-First provides a written guarantee that if you follow the program you will get the guaranteed results shown in the free analysis that is done in the beginning. It is a lot like P90x or other workout programs. If you work them they will get you results.

Matt: How have you overcome the fact that is yet another Network Marketing Pyramid like business. The Stigma that accompanies this type of business can be a turnoff.

Dennis and Cheryl: First off this isn’t Network Marketing. There is nothing about the program that requires me to involve other people for it to be successful. It stands on its own. I follow the on screen prompts and I’m out of debt sooner rather than later. The hint of network marketing comes in when we start talking about the business opportunity that is here. I look at it like this: When is the last time that you got gas? The attendant gets paid when you do and the supplier and the company and etc. etc. Every business transactions have multiple levels of payment. The thing is I have a product that can impact the lives of many. That is what I present. If my business grows and others that I have helped want to share it and get paid for their efforts where is the harm in that. If it were only Cheryl and I think of all the people that I could not reach. I think that everyone should know about this great opportunity.

Matt: Today’s economy has created in many cases a Financial Paralysis among many. The instability of  jobs, the market, home ownership and life in general has lead to indecision. Given the fact that we often make Emotional decisions and our emotions are out of sorts how have you reached the consumer.

Dennis and Cheryl: Indecision is like inverted insanity. Doing the same thing or doing nothing hoping for something is just crazy. Whether or not this product is for you is purely MATHEMATICAL! The numbers are either supportive of a decision to move forward, or it just plain doesn’t work. (Cheryl) If you had a hole in your gas tank and were leaking gas would you not fix the problem. This is something I wish I would have known earlier. However, we will have our home paid off in less than twelve years leaving me plenty of time to enjoy the fruits of our labor.

Matt: Who is the ideal client?

Dennis and Cheryl: There are three different types of people that I have found have a genuine interest in the product. They get the concept and they move forward. Those people are:

1. People serious about getting out of debt
2. Those interested in Wealth Building
3. Those interested in increasing their income.

Dennis and Cheryl chose to take a hard look at where they wanted to be in the near future. They chose to go outside of the conventional way of thinking and take a look at something that could impact their life significantly. They took the steps to do so and they are already experiencing the results. This one choice has helped to change their thinking. They have seen the system work for them first hand. The Financial GPS has redirected them when “Life Happened.” Dennis and Cheryl would like to share with others what they have learned for themselves. It may not be for everyone but if I were looking for a coach whom I could trust Dennis and Cheryl would be just that. Their passion to help others is evident. If you are interested in hearing more about what has changed their life contact them at:

(916) 367-3453 or dennisgharris@gmail.com.

Thank you Dennis and Cheryl for taking the time to sit down with me and share your story.

Technology have you down? Watch Mike Ferry’s Video on Technology and real Estate

I came across these video and it caused me too laugh a ton. Mike Ferry is a well respected Real Estate Trainer and to hear his take on Technology was informative. Check it Out!

Honored to be Honored

Last week, I was sitting in my office when out of the blue one of the wholesale reps that I work with appeared from around the corner. She had a bag and a square box in her hand. As soon as I got off the phone I said, “Hey Maryann how can I help you?”  She said, “I just wanted to give you this gift to you on behalf of Pinnacle Capital Mortgage.” The award to the left was what they had in the small square box. The bag was a bottle of Merlot.

The reason that I have written this is simple. Thank you Pinnacle Capital Mortgage for everything. With out you I would not have been able to help the homeowners that we helped together. I greatly appreciate your part and efforts to get these buyers in to the home.

“I am honored to be honored.” It has been a humbling few years and you never know how you are doing overall. I always know the number of loans I do and the number of people that I have blessed to help. What I do not pay attention to and what I do not know is how I am doing in the overall scheme of things. Thank you, Thank you, Thank you. I certainly will be drinking the wine soon enough!

Are you Commingling? Mortgage Definitions

Commingling can take several different forms and meanings so we are going to focus on the root of the word. According to Wikipedia, Commingling literally mean “mixing together.” This is a common concern in the Real Estate world when it comes to collecting Earnest Money deposits and such. Taking a clients money and mixing it with your own personal funds is illegal. Financial advisors and attorneys also run the risk of serious legal action if they were to commingle funds.

It is when a fiduciary mixes funds that he holds in care of the client with their own funds. This makes it difficult to determine who’s funds are who’s and in the case of financial investment how to distribute gains.

For the purposes of this blog I wanted to touch on Commingling from the gift perspective.  As FHA continues gain steam as one of the premier financing tools for a home purchase so does gift for down payment. The Paper trail of the gift is extremely important and must be consistent throughout. For Example: Your aunt has agreed to give you $5000 for the use toward your purchase. Your aunt must show she has the ability to give the money via a bank statement, evidence the withdrawal from that account, show the cashiers check and the borrower must provide a statement receiving the funds. The cashiers check and the deposit into the borrowers account must match. Many times clients take the Cashiers check from the aunt and Commingle the funds with another small deposit. Now the paper-trail of the gift does not match across the board. If the additional funds were case they are hard to track.

Commingling could cost you time and anxiety in your purchase transaction if you do not pay attention.

Today I saw the oddest thing…………a book?

I had a meeting this morning and it was at a coffee shop. I went into the shop and began looking at all the books that they have in the bookcase. As I was scanning the books I noticed a book titled “100 Greatest Bible Verses.”  This really seemed to get to me. It raised the following questions right away:

• In what Context?
• To Whom?
• Who Said?
• Do you think that Jesus labeled one verse better than the rest?

I am certainly not an authority on the situation by any stretch of the matter. However, I do think that all verses have their time and place and that they are all very relevant at all times. The Bible is a book of Love. In the book there are several commands, parables, genealogical verses and simply verses that tie things together.

Now, I did not pick up the book to see if the author did put this into context. Something like 100 Greatest Bible Verses to me, regarding love or anxiety, or simply the best of all time? It is much like choosing the top 100 Basketball players of all time. It is so different for each and every person that I can’t believe that you can put this in a list. I also think that the list is an ever-changing list. It will change to you over time as your priorities or “core values” change.

I think that it is hard to create a list like top 100 basketball players of all time. This is very different for each person based on their perspective of what might make a player good or great. This list changes over time as the options change and there are more players to choose from. There are not going to be additional Bible verses over the coming years but perspective and impact of a verse may change for someone over time. I used to believe that there was an absolute truth. That everything had an answer that was specific to that question. Yes, this was when I was an Engineering major but over time I have changed my view on that a bit.

See our story is written in advance but we are given moments in life that one choice versus the other will have a dramatic impact on our future. God will rewrite the story based on that decision and the choice that we come to. It is a story that is also ever-changing. I think that our perfect creator has to change his plan on the go. Rewrite goals based on the actions that we have taken here.

So then why the rant on the book. I think that categorizing “greatest 100 verses” is impossible. Yet we can publish this because lists are an easy  way to read and understand something. List Posts are popular styles of writing and I have used them in my blog. However, I just can’t wrap my head around the best verses of all time. It struck a nerve in me and I had to write about it to determine whether my thoughts are silly and without merit or others think that without context this is a hard one to Categorize.I also think that it is in line with some recent thoughts I have been having on a series, on another personal blog I am creating(so I don’t commingle, next mortgage definition, work and pleasure to much) about LABELS!!!!

Thanks for listening!!!!!!!!!

******Update for clarification purposes. One of our readers made a great point. God is all knowing so when I spoke about rewriting the goals or our story I was off base from my own understanding. Our course has been set and like our very own children it may not be the path he had envisioned for us. However, he does love us unconditionally and he is graceful. Thanks again for the gentle reminder and encouragement.

HUD making Changes to FHA lending?

I am certain that by now you have heard that there are some changes that are beginning to take place with FHA financing. I am certain that you have heard that they are Bankrupt or that their reserves are diminishing at a rapid pace. I am also certain that you have heard that FHA will be adopting the HVCC as of January 1st.

How much of it is True? What affect will it have on the housing market? Does any of it affect the loan that I have with them?

I am sure that there are a dozen other questions that are going to arise from the headlines and the many blogs that are posted pre-maturely from professionals wanting to be the first to give you the information. Please be aware that all changes that will go into effect will come in the form of a Mortgagee letter. If you do not read it from a m0rtgagee letter do not give it a ton of thought. Even if you read it here it should contain a link to the mortgagee letter directly on HUD’s site. Click here to go to the HUD Site. They have published several mortgagee letters.

Changes include but may not be limited to:

• Appraiser Independence
• Appraiser Portability
• Appraisal Validity Periods
• Strengthening Counterparty Risk Management
• Revised Streamline Refinance Transactions
• Annual Base City High Cost Percentage Revisions

Appraisal Review: Is it a Blessing or a Curse?

If you are in the Real Estate Industry you have been involved in a transaction that has required an appraisal review. Appraisal reviews come in several different sizes and shapes. I think that it is important to know a few key terms before I go on. The following terms AVM, Desk Review, and Field Review are a few of the terms that you will most likely come across in the coming months.

AVM – Automated valuation of a property. This is derived from the best available data at the time the AVM is ran and does not take into account distressed sales or condition of the property.

Desk Review – The original appraisal is reviewed by another appraiser. They critique the original appraisal pull new data and much like the AVM do not take into account many of the items that may make a property unique or valuable. Many times the reviewer is not even native to the area that they are reviewing.From the information they gather they Agree or Disagree with the original value. If they disagree a new value in their best opinion is derived. This will be the value that the Lenders now based they decision off. (I must note I have never had a desk review come in higher than the original appraisal so my example assumes the value was less.)

Field Review – The highest form of a  review. A new appraiser actually goes out to the property and inspects it. They take the original appraisal, new data and information that they obtain from the inspection and come to a conclusion of value. Like a desk review they will agree or disagree and the value that they come up with supersedes any previous value given.

How and Why?

At this point you may be asking yourself if there is an appraisal in the file and the value is in line with the purchase price why then would we need a review? That is a very valuable question. First, HVCC (see previous post) changed the way that the world of appraisal operated. This was brought into play to reduce the risk of overvalued appraisals to protect both the Lender and the Consumer. Brokers had “undue influence” on the value based on a relationship with the appraiser. FHA is not part of the HVCC regulations at this point so Brokers can still order through an appraiser that they have a relationship with.Important update: FHA is now subject to HVCC. So when a loan is submitted and the underwriter is underwriting the loan they almost always (always in my book) run an AVM. If that AVM does not support the value of the appraisal that we have submitted they will ask for either a desk or a field review. The cost of a desk review is much less so many times this is what we opt for. Important Suggestion: If you have a property that is unique in nature, lacks comps, has to be seen to be appreciated skip the desk review and go straight for the Field Review. Yes it will cost more money but a low desk review plus a field review is both more expensive and time consuming. After all time is money. Another Option: In some cases the lender will allow you to order a second full appraisal which at least you could choose the appraiser and cut down on time. This is not always the case so ask first before assuming this can be done.

Side Note: Collateral is the most valuable asset to the lender so this will always be scrutinized the most.

Now that we have an idea of how the review process is triggered let’s take a look at an example:

Purchase Price: $200,000

Original Appraised Value: $200,000

Desk Review: 150,000

Field Review: $195,000

If the buyer is doing a standard FHA purchase they are putting 3.5% down. The value in this case is going to be based on the Field Review as it superseded both of the previous values. The new loan will then be based on $195,000.

Buyer Options:

1. Ask for a price Reduction to 195K based on the field review and send the review with it.
   
2. Pay the difference in Value and Original Purchase Price out of pocket; 5K
   

Given the two options I ask the question is Appraisal Review a Blessing or a Curse?

In my opinion, if the buyer gets the reduction in price and pays a Fair Market Value for the house then it is a blessing. Anytime you get something you want for less money it is a blessing. However, if the reduction is not granted then is my buyer overpaying for the property? Do they have the money to pay the difference? Are they in danger of losing the home?

These are only my thoughts.

What are your thoughts on Appraisal Review? If you have had an experience with it please feel free to share the experience.

Matt Freeman, an accomplished Mortgage Broker, is the author of this article. If you are interested in more information like this please take the time to opt in to receive updates. You can do this now California Home Strategies by simply entering your name and email. Thank you again for taking the time to read through this today.

4 Common ways to Hold Title to Real Property

How many times have you thought about how you hold title to your home? If you currently do not own a home then how will you hold title when that day comes. Previously Brian Qualls wrote an article on California Home Strategies describing how a married couple should hold title in the state of California. However we have not addressed how single persons, business partners or friends buying together would hold title. In the next few paragraphs we are going to take a look at 4 Common Ways to Hold Title to Real Property in 6 different aspects.

Tenancy in Common:

• title – each co-owner has a separate legal title to his or her undivided interest.
• Parties – any number of persons
• Division – Ownership can be divided into any number of interests, equal or unequal.
• Conveyance – Each co-owner’s interest may be conveyed separately
• Death – On co-owner’s death, his or her interest passes by will to that person’s devisees or heirs, No survivorship right.
• Successor’s Status – Devisees or Heirs become tenants in common

Joint Tenancy:

• title – There must be unity of title and time created in one document
• Parties – any number of persons
• Division – Owner interests must be equal
• Conveyance – Conveyance by one co-owner without the others will sever (terminate) that individuals joint tenancy
• Death – On co-owner’s death, his or her interest ends and cannot be disposed of by will. Survivor(s) own(s) the property. An affidavit of death of joint tenant establishes death
• Successor’s Status – Last survivor owns property 100%

Community Property:

• title – is in the community. Each interest is separate but management is unified
• Parties – Only Husband and wife. Registered domestic partners have community property rights
• Division – Ownership and managerial interests are equal
• Conveyance – Real Property requires written consent of other spouse or registered domestic partner, and separate interest cannot be conveyed except upon death
• Death – Upon death of one spouse or registered domestic partner, 50% belongs to the surviving spouse or RDP, 50% goes by will to descendant’s devisees or by succession to surviving spouse or RDP,
• Successor’s Status – If passing by will, tenancy in common between devisee and survivor results

Community Property with Right of Survivorship:

• title – is in the community. Each interest is separate but management is unified. Title must expressly state community property with Right of Survivorship
• Parties – Only Husband and wife. Registered domestic partners have community property rights
• Division – Ownership and managerial interests are equal
• Conveyance – Real Property requires written consent of other spouse or registered domestic partner, and separate interest cannot be conveyed except upon death
• Death – Upon death of one spouse or registered domestic partner, his or her interest ends and cannot by disposed by will. Survivor owns the property 100%. An Affidavit of death establishes death of a spouse or RDP.
• Successor’s Status – Purchaser can only acquire whole title of community, cannot acquire part of it.

As always I suggest that you talk to a Real Estate attorney or do your own research when choosing the most appropriate way for you too hold title.

5 perceived differences between a Bank and a Broker: One Perspective

You are considering taking the monumental step toward homeownership. You are sitting at the kitchen table and beginning to wonder the very dynamics of just how you might accomplish this. There are so many uncertainties that are running through your mind. Should I do this? Is it the right time? Can I get a loan right now? Will I be able to find a home that is not a short sale? Can I low ball the bank? Just these few questions alone may have your mind in a spiral. Where have the questions come from? They generally are formulated based on media exposure, conversations with friends or co-workers, family and from the Internet.

The pressure of wanting to buy before the end of the tax credit November 30th is beginning to mount up and take a toll on you. I want to make sure that I buy in time to get the 8K. Why not? After all it is free money;).  Finding a Real Estate agent in most cases is not a very scary task. After all the inventory is the inventory and the seller pays the fee. You can find one online or just go buy an open house and pick one up right? ( I strongly recommend getting a recommendation as there are so many things that a Great Realtor does for you that you may not even be aware of).

Now that you have all that down it is time for the money and the question of the day is Where should I get my Financing my bank or a broker? I am going to outline 5 perceived differences between the bank and the broker (from my point of view) and let you make the determination.

1. Brokers are more expensive than banks – I hear that we are more expensive than the banks all the time. I understand why one may think this and agree that they may be right. Generally we (the broker) have an additional fee that you will not see when you go to the bank. We have our Processing fee and the wholesalers underwriting fee where the bank will generally have only their own combination of processing and administration. The difference is generally along the lines $500-$700 dollars. The Twist – Our rates as Brokers are better. We can always match the fees and the rates of a bank. They are never doing anything special. Price is what you pay value is what you get.
2. Terminology and Description of the Fees – Banks are not bound to the same level of disclosure that Brokers are held too. In my opinion, we are held to a higher standard because we have to display and disclose our Yield Spread Premium. As you might have read in my other post this is the compensation we receive from the wholesaler for delivering a certain rate to you as the consumer. Banks receive this as well but they do not have to show it. Banks also commonly state that they are charging no “origination” but they charge a discount fee that goes to them as the bank. It would appear that they are lowering their fees or that the loan officer is not trying to make money but it is simply a play on terms that is confusing to the consumer. If I charge discount to a borrower it goes directly to the wholesaler and your rate is reduced. I will also charge an origination fee because when I charge discount I do not receive Yield Spread Premium.
3. Expeditious Closing Times – Many times I hear that Brokers cannot close a deal in less than 30 days. This is so far from the truth. I just closed two deals in less than thirty days from the time that I was told we are in “Escrow.” One of the deals closed 28 days early. Closing times are a combination of a lot things. All parties have to be committed to the process and have to do their part in getting the deal closed. If you are asked to get something to someone and you do the deal proceeds quicker. MDIA has changed the time lines a bit but I think that we all have a grasp on this. As a Broker I care for two reasons about getting your deal done on time: a) I  work by referral only and I want you to send me customers as well as the agents involved and b) selfishly I want to get paid for my work and that is the only way to get paid is to close the deal. On the other hand bank loan officers are usually on a draw against their commission and are paid net 30 so they will not see a dime on your deal until the following month. In the meantime they will be paid something. They generally are shoveled leads that call into the “big name” bank and work those leads. Many of the LO’s are beginning to market themselves outside of the office but generally it is inbound customers.  They generally do not have the level of the relationship with the Realtors that Brokers do. I know many Loan Officers who are leaving the large Banks and coming back to the broker world just because they cannot get the deal closed in time.
4. Transactional Versus Realtional – I have chosen to be in the Broker world because I do business relationally. I do not see you as a transaction that needs to get done. A number on my belt. I see you as a potential homeowner that we will be in the world of homeownership forever. I have gone to parties with my clients, coffee, dinner, in the same small groups and many times our kids are playing ball together. The Purchase is a small piece of the overall picture. From Estate Planning to Insurance to finding the right handyman I am there to help you.   I believe that many of the Brokers that I know that are still in the industry have this very same approach to their business. You do not have to take a number and wait for me. That being said I do have boundaries but I will also return your call in a respectable time and respond to your email and questions. I can be found if you need me.
5. Special Discounts – I commonly hear that because I am a bank customer I am getting a special discount. Again take it for what it is worth but as a consumer we all want to feel like we are getting something for nothing. Take a look at the furniture industry. They are always liquidating or having very large sale items. This is not a coincidence. We have trained our minds that a sale means good deal. This is a phenomenon that banks have learned to capitalize on. As a valued customer we are going to waive this fee or that fee. It is a perceived added value but in the end you pay what you should pay for a loan. It is a rare case when a client has a large sum of money with a bank and to keep that client happy and those deposits in their bank they do something that I cannot compete with. I have very rarely lost a deal to a bank. When I have it has never been because I did not have comparable price or fees. They simply had a comfort level with the bank. I do understand that I am not the guy for everybody.

In the end we all fish from the exact same sea. The rates are the rates and the fees are the fees. The types of loans available are available to all of us. The Separation is in the Relationship. You will either have a better relationship with the bank or the Loan officer at a brokerage firm. If you are simply negotiating for the “best perceived deal” in the monetary terms you can get it at either place.

Where does your Professional go when the deal hits a snag? You Deserve to Know!

In today’s market even the cleanest deal will have some hurdle or obstacle that will have to be explained. The question is when the going gets tough who is there to answer the questions and help you through the hurdle. Is it the Realtor? Is it the Loan Officer? Is it Both? Neither? Who is there by your side as a buyer and/or a seller when the road is bumpy?

I mention this because it gets to me a little bit. I think that as an industry we have to rally together to deliver the news. All too often professionals go into hibernation when the deal hits a bump. They do not answer their phone or they wait until they have it solved and call as if they did not ignore the previous 100 calls. Let’s look at this from a different angle for one minute:

I am a doctor and I just looked at X-rays for my client. I have found a mass that I have not quite determined what or how I will take care of it. I have a few ideas based on my expertise but want to do further research before providing the solution. In this case do I:

1. Inform the patient of my findings and let them know what I think may be the solutions
2. Send the patient home without any knowledge of the findings hoping that I will have the solution in a few days
3. Ignore all the inquiries I am getting from the curious nurse, patient, family members, etc.
   

I think that we all know the answer to this. It is our duty as a professional to let others know. If we do not have the answer and we have to consult other “doctors” as sometimes is the case we should let the parties know this. “Uncertainty” is one thing that every human I have ever met is inclined to dislike. We like to know what is going on and what we have to do to help the situation. Sometimes that will be nothing but knowing that we can do nothing but wait is better than not knowing what is going on at all.

I will be the first to admit that when I was first in the industry I did not like making the bad call. I still don’t but the difference between now and then is “I have been on both sides of the fence.” Solutions are derived from brainstorm and I still believe in the old saying “Two heads are better than one.”

Please feel free to let me know if you agree or disagree with this?

Next Page »