Who Can You Trust With Your Home Loan?

Who can you trust with your home loan? When you consider the financial and social impact of purchasing a home, that’s a great question. So much has happened to home owners in the past two years this may be a good time for some strategic reflection.

The reports about nationwide foreclosure are just astounding. According to RealtyTrac.com, foreclosure activity is up over 55% in the first half of 2007!

Bankruptcies are now being pursued at the prime lender level. According to the Inman News service, American Home Mortgage Investment Corporation, a publicly traded real estate investment trust, and the nation’s 10th-biggest residential mortgage lender, has filed for Chapter 11 bankruptcy protection.

Estimates suggest more than sixty sub-prime lenders have either sought bankruptcy protection or suspended lending operations.

More financial dominoes are poised to fall as the one trillion dollars in Adjustable Rate Mortgage’s (ARMs) are set to adjust in each of the next two years.

What we are witnessing is the “cause and effect” of selfishness and greed in the mortgage lending community. Instead of following sound business practices that protect the borrower and the lender with appropriate underwriting, the desire for more profits has thrown things out of balance.

For many lenders the desire for commissions, fees, or profits, whichever is most appropriate, simply overtook their better judgment. Their actions have created a “crisis of conscience” in the lending community.

Think about it. The creation of products like “Stated income loans”, “Adjustable Rate Mortgages”, “Interest Only Loans”, and “Negative Amortizing Loans” demonstrate a certain degree of creativity. However, in the hands of financially inexperienced borrowers, the improper use of these tools has resulted in financial disaster for too many home owners.

As a matter of fact, it became too common for many lenders to actually encourage borrowers to apply for home loans they had very little chance of ever repaying. To make matters worse, many of the loan contracts contained prepayment penalties.

These penalties would have to be paid even if the borrower wanted to get out of the contract and into something more suitable. This is a major part of the “crisis of conscience” I refer to. Since the loans were created and then sold to Wall Street as mortgage backed securities, the rest of the dominoes have not yet fallen.

You see these securities are part of pension funds, hedge funds, mutual fund families, Real Estate Investment Trusts (REITs), and similar investments. The results of these activities become real once the write downs and write offs have been completed. For many investors the results will be not only disappointing, but devastating.

Here’s another hit by the sub-prime market’s collapse. Investors in a 10-month-old Bear Stearns (BSC) hedge fund are learning the hard way about the danger of investing in risky bonds with borrowed money. The investment firm’s High-Grade Structured Credit Strategies Enhanced Leverage Fund, as of April 30th, was down a whopping 23% for the year! This is a preview of things to come.

Based on what has just happened, is it just me or is there something really wrong with the name of that fund?

Let’s not forget about the conscience of the borrowers. They are not without blame. A home loan for many people is the largest investment they will ever make. Better buying decisions must be made that are based on deductive reasoning as well as emotion. Professional help with contract reviews would also be very helpful.

My barber gets credit for sharing a very simple but potent example of what should happen between a financial counselor and a borrower. He was a Vietnam war veteran. After the war he decided to take advantage of the VA Bill that allowed him to get a 100% home loan in return for his service to this country.

He and his wife finally found what they were sure was to be their “dream home”. Just use your imagination to get an idea about what a dream home looks like.

When they met with the VA counselor to discuss buying this home, things became much more realistic. For example, my barber was advised that only he was a war veteran, so only he was eligible for the special home loan funding.

Consequently it made a lot more sense to find a home that could be purchased with his income, not their combined incomes. Further, when he reviewed the financial data the counselor asked if the couple intended to have any food in the house. In addition, if there was to be food, how would it be prepared? Of course you can see how this was developing.

Once you add in the other utilities and the taxes and insurance, what you thought was to be your mortgage payment falls way short of your actual mortgage expense.

As a home owner you should also put some money away for emergencies and the so-called “rainy day”. In this land of opportunity there should also be a comprehensive investment plan.

This counselor did exactly what needed to be done to prevent the very problems that are so prevalent today. His actions demonstrated the best way to overcome a “crisis of conscience”. Just do the right thing for the borrower and the lender when creating a home loan. In a win-win situation, there are no losers.

Copyright 2007 / TDO Properties, LLC / All Rights Reserved

How to Build Network Marketing Business – 6 Action Routine That are Guaranteed to Work

The advance of Internet technology really allows today to communicate simultaneously with thousands of prospects and sponsor 5 people every day to your business opportunity if you know how to market online. However, the reality shows that the majority of network marketers quit even before they start seeing any results. You can become so fascinated about learning attraction marketing principles and backed by the belief that you can market like a guru, you may find yourself working hours on end and months after months without any profit. By no means you should learn and implement new marketing knowledge but you must also remember that this business is all about people and you can start networking today.

So how do you build a network marketing business? You should not neglect what has always been working in network marketing for decades and in the same time learn how to market effectively online. There are 6 daily actions that if you focus on them daily, you are going to build a huge MLM business.

1. Use your product and share it with other people

It is so simple yet many network marketers get too busy all the time learning marketing and do not tell anybody about their products at the end of the day. You are indeed not going to build a huge organization if what you do is only sharing your products with other people, however it is important to be aware that people around you just may want to buy your product.

2. Share your business opportunity

Start talking with your customers and other people about your business opportunity. Do not decide ahead of time who is your opportunity for, give the person a shot. You do not have to be an expert to share your business opportunity with others. Use the tools that are available to you today and get the message across.

3. Follow up

This is the key and many network marketers underestimate this step. After any interaction, whether it is your new customer, exchange of business cards or new distributor sign up, always ask yourself what is the next step. The real business growth is always in the follow up.

4. Build yourself a team

Always concentrate on building a strong team that duplicates your actions. It is your most important asset in the business so help your team achieve great success in the shortest period possible. Remember that leverage is your ultimate key to success in network marketing.

5. Look for and develop self sustaining leaders

While it is important to help every member of your team, the reality is that not anyone will become a leader. Focus your most attention to people who has passion and determination in this game, people who are doers rather than thinkers. Your way to millions may be only 5 serious leaders in your team. Build strong relationships with those people.

6. Apply “Self management”

What you really manage in this business is yourself. All the research, product development, customer service and anything you can think of has been done for you so your job is only talk to people and do the marketing. Since YOU are the most important piece of the puzzle in the business, you must learn how to lead yourself before you can lead others. What you can control is your attitude, mindset, self motivation, vision and goals so that is what you should constantly work on.

If you properly apply these six steps into your daily routine, I guarantee you will build a huge MLM organization. There are of course much more things that you must know that I could not elaborate in this short article. To learn more how you can build your network marketing business, make sure to visit the links below.

Network Marketing Business Success With 5 Key Strategies to Help You Sponsor More

If you are involved in MLM home business or a network marketing opportunity you are in the business of connecting with people. Regardless of the contact advantages presented by the internet and all of the online networking connections that exist, your MLM network marketing business success still boils down to your direct contact and communication with your prospect. No matter what if you are to close a deal and sponsor new reps into your company, network marketing recruiting is going to happen in person or over the phone.

This direct contact requires you to gain confidence with constant practice and adjustment. It is also the very reason most marketers struggle to succeed in the industry, get frustrated, and often quit as a result of this contact. Learning not just what to say but how to say it and doing it in a professional and confident manner can mean the difference between the struggling network marketer and the six or seven figure income earner. Success with your network marketing business has nothing to do with sales but everything to do with relationships

This article outlines five important areas for you to practice leading to improved closing rates for your MLM home business. By realizing these factors you will build confidence as you prospect for new clients, no matter which market you are focusing upon.

First and foremost, MLM network marketing success is not about you, it is about your lead or prospect. You will not be able to sponsor someone to join your company if it is for your reasons, it must be for theirs. Your clients want to be understood and respected not sold to. Every person has individual goals and reasons for wanting to make more money and your connection with them and understanding your prospect’s wants and needs is a big factor in determining whether he or she will join your network marketing business opportunity.

Secondly, understand that you are focusing on long term results not just an immediate sale or close. If you are worried about making a sale or completing an enrollment it will show up loud and clear during your calls or meetings. As a network marketer keep your same confidence and demeanor during your conversations as if it does not matter whether your contact joins or not. One sign-up will not make or break you as a network marketer so don’t come across as if it does.

Even if you successfully close and gain a new MLM home business enrollment, your focus should be on building and developing business partners who are serious about making money and taking action over a long period of time. You do not want to qualify people who are not willing to move forward or those in need of constant support as they reduce your effectiveness as a network marketing leader. You may achieve short-term success with a new business sign-up but you do not want a person with long-term difficulties.

Third, focus on your prospect’s goals and keep them at the forefront of your conversation as your prospect brings up roadblocks to joining your network marketing business. Usually money and time are the most common excuses claimed for their reluctance. Most often these claims are from fear of commitment to seriously pursuing their stated goals. It is much easier and more comfortable to talk about your wants and goals rather than making a full commitment to the time, money, and effort needed to accomplish them. By envisioning the reasons and the true desires behind these goals, your prospect is more likely to make a commitment to move forward.

Fourth, if you are to successfully promote your MLM home business then you must have confidence and know that you are in charge of the conversation. You have answers the answers to your prospect’s money and time problems but he or she must realize that for their reasons only. If you are on the phone think as if you are speaking face to face with good body posture and a tone that speaks from strength and understanding. The person that is leading the conversation is usually the person who is asking the questions. That is the person mostly likely to achieve the desired outcome or in the case of network marketing you close the deal.

Finally realize and communicate with the intent of building a relationship with your prospect. Be genuinely interested in that person and allow your prospect to speak about himself. If necessary spend 10 or 20 minutes building rapport and finding commonalities with your prospect. Refrain from getting restless and trying to secure a close too soon. Continue to build value and reference their goals and dreams and try not to use yourself as an example when recruiting. Even if your prospect does not sign up with your company you may create a new lead resource with other contacts available through your prospect.

The more you practice these essential elements the more successful and confident you will become as a network marketer. It is truly a numbers game and your closing numbers and sponsorship numbers will certainly increase over time by including these elements into your conversations.