Can YOUR Mortgage Company Confiscate YOUR Homeowner's insurance Damage Claims Proceeds...and then apply the money to your MORTGAGE BALANCE, leaving you facing a Mechanic's Lien for non-payment of the repair bill?
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As a result of damage to a homeowner's roof from a storm, the homeowner filed a damage claim with his Homeowner's Insurance company. The adjustor inspected the damage, and the insurance company sent a check to 按揭計算機 the homeowner. As is customary with most insurance companies, the check was made out to both the homeowner and the Mortgage Company, let's call them "Homecomings Financial" for lack of a better name -- and because that IS their name. The homeowner sent the check to the Mortgage Company expecting them to endorse it and send it back while he hired a contractor to repair the roof.
Instead of endorsing the check, the Mortgage Company sent the check back to the homeowner UNendorsed along with a package of forms the homeowner was required to fill out and sign and return along with the endorsed check. The Mortgage Company would then deposit the check (possibly earning interest from the HOMEOWNER's insurance claims proceeds). Once the Mortgage Company received all of the above, they would send out a third party inspector, and if the damage had actually occurred and the repair work was actually scheduled, they would send the homeowner a check for ONE THIRD of the claim. At the 50% completion point, the homeowner was required to contact the Mortgage Company to send out the inspector again, and within 3-5 business days, the inspector would inspect, take a couple of days to file a report, and after the Mortgage Company received the inspector's report, they would send the second ONE THIRD of the claim money. At the 95-100% point, the above procedure was to be repeated so the homeowner could receive the final ONE THIRD of HIS OWN INSURANCE CLAIM MONEY (not including any interest the Mortgage Company might have earned while holding it in THEIR bank account).
...It Gets Worse...
In the fine print of one of the forms was a notice that the Mortgage Company reserved the right to REDIRECT the claim proceeds toward the mortgage balance instead or returning the money to the homeowner to pay the contractor if "certain conditions" existed, one of which was whether the "repairs" would restore the property to its "original condition" or "substantially improve its value" -- and the MORTGAGE COMPANY gets to make that decision. Another "condition" was if the balance on the mortgage was LESS than the amount of the damage claim, again the Mortgage Company reserved the right to REDIRECT the claim proceeds toward the mortgage balance.
One of the forms REQUIRED by the Mortgage Company was a "Hold Harmless" agreement that said if the homeowner failed to pay the contractor, the Mortgage Company would be held harmless from any Mechanic's Lien filed by the contractor.
Let's Recap:
Don't let it happen to you. If you haven't checked the fine print in your mortgage contract, check it NOW! If YOUR mortgage company has a similar provision in your mortgage contract, CHANGE MORTGAGE COMPANIES! Let a reputable lender get you out of that outrageous, unethical, perhaps illegal arrangement and into a mortgage contract that could even save you money with a lower interest rate. Don't wait until the nightmare described above hits YOU!
Mortgage marketing to realtors can be an easy and enjoyable process. Having a steady flow of referrals from real estate agents is a great way to insure the continued growth of your business.
But how do you develop a network of quality, low maintenance realtor referral partners? Good question. Below you will find the answer.
Are you ready to get started? Here are step by step easy to follow instructions given in an outline format to help you develop 10 realtor referral relationships in the next 30 days.
I. Finding Real Estate Agents
Option 1: Escrow Officers
1) Select 5 huge title companies in different parts of town.
2) Use the top escrow officer at these companies for a transaction.
3) Wow your client and have the escrow officer complete your customer satisfaction survey at close so the title officer can see what a great job you do for your clients.
You can download a sample customer satisfaction survey by visiting:
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4) Immediately after the transaction funds, send the title officers at all 5 offices a gift and tell them how much you appreciated their top notch service during the transaction.
5) Exactly one week after the title officers receive your thank you gift, go see each of them face to face and ask them for referrals to top realtors. Ask for referrals to real estate agents that are easy to work with and do at least 2 transactions a month (or however many transactions you would like).
Option 2: Top Producer List
Ask your title officer for a list of the top producing real estate agents in your area. This list will enable you to target real estate agents who are actually doing business.
II. Approaching Real Estate Agents
Option 1: Approach Letter
1) Send a letter to one or two real estate agents per day. Be sure to stay organized. Use software or some other method to keep track of who needs a follow up call each day.
2) Send your letter in an unusual way so it gets noticed - like a Fed Ex overnight package for example. Everyone opens overnight packages with great anticipation.
Here is the delivery method I used. I learned it from Todd Duncan and it worked well:
Wrap your approach letter around a Pay Day candy bar, use a gold ribbon to keep the letter attached to the candy bar, then send your letter / candy bar to realtors in a tube.
This letter delivery technique is sure to get noticed.
For a sample approach letter to use when mortgage marketing to realtors visit:
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Here are some important elements to include in your approach letter:
* Offer a unique selling proposition (USP) that can help their business
* Tell them a little about yourself.
* Also, tell them you will be calling in 2 days to schedule a face to face meeting. At the meeting you will explain your USP and how it can improve their business.
Option 2: Office Managers and Realtor Associations
1) Contact real estate offices and ask to speak with the manager. Explain to the manager that you are a top producing Mortgage Planner. You are currently offering complementary seminars to a limited number of real estate offices.
Here are a few seminar ideas:
* How realtors can use 1% mortgage loans to increase their business
* How to get more leads from your real estate website
* Anything you can think of that would benefit the realtors at the office.
2) Offer to give the short talk during their next sales meeting.
3) Offer to bring lunch.
4) During your talk offer the realtors a valuable tool, gift or information that can only be obtained by giving you their business card. When you send the gift include an approach letter explaining you will be contacting them for a face to face meeting to discuss a USP that can increase their business.
You can also use this technique with local realtor associations. Offer to give your talk to the entire association. Just be sure the topic and information you discuss is truly useful.
Give these ideas a try. They really work! You’ll be amazed at how fast your mortgage referral business will grow.
By the way, if you are the shy type and do not want to conduct seminars or face to face realtor meetings, you can always hire someone or bring on a partner to do this stuff for you.
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