Rates for this morning have been posted at Mortgage Porter. If your buyers have good credit, 20% down or are FHA candidates, then you should be doing fine! Contrary to popular belief, there is still financing for Jumbo loans too.
What was made clear this morning by Fed Chairman Ben Bernanke and President Bush at their separate speeches, home owners who are not able to take care of their credit will not be rescued by the government. This is why it's so important that agents also contact their clients to touch base with them. Show them you really do care about them. I encourage you to ask your clients:
- Do they have an adjustable rate mortgage? Do they know how it will adjust and what the new payment could be?
- Are they in a subprime mortgage? How are they doing? Are they preparing for their rate to adjust?
It's not just subprime mortgages that are facing a dilemma. Many of our clients with perfect who qualified with fixed period interest only ARMs will be facing payment adjustments once their fixed period is over.
If your clients are not planning ahead (1-2 years if possible) for their mortgage rate to adjust, then they may be forced to sell their home. They need an "exit strategy" regardless of what their plans are. Many ARMs with first adjustment caps of 5% will see their payment almost double.
Home owners that I have helped with adjustable rate mortgages or subprime balloons did receive counseling and review of their mortgage programs at application and escrow company most likely reviewed the note with them at their signing appointment. However, you know as soon as they started unpacking and enjoying their new home, they only think of their mortgage when their writing out a monthly check. The other details are long forgotten.
I think this is an excellent opportunity for real estate agents to contact past clients. Why not pick up the phone and say something like:
"Hello Suzy, Hope you're doing well (yadda yadda)... I'm sure you're hearing a lot about the mortgage industry on the news these days. I just want to check with you to make sure you're doing well. If you have any questions or concerns, I would like to refer you to the Mortgage Professional I work with so she can help you. Can I have Rhonda [okay...or whoever your preferred lender is] give you a call? She is offering a free mortgage review and can help you understand when your mortgage payment may be adjusting.... I just want to check up on you and your family. Please know I'm here for you should you need anything."
I would bet most agents are not being proactive about this. Heck, I bet most LOs aren't either!
We all helped them get into their homes, let's help them keep their homes. And worse case, if they cannot manage their payments or no longer want to be a home owner, you'll be fresh in their minds when they need help selling. Best of all, this 5 minute phone call could possibly save a families lifestyle if you're able to encourage a client to have their credit and mortgage reviewed.
Stumble It!
