Are You Looking For Small Business Ideas?
Cash In On These New Low-Cost Start-up Ideas!
Over
100+ free business ideas (and new ones are being added!)
Find
the business idea that is just right for you
Discover
home based businesses that you can easily start
Turn
your hobby into a profitable business
Small Business Idea #376:
How to Start a Loan Modification Business - The Most Important Element to Know Before You Start
By Ken Block
One of the things that the majority of folks find most challenging about getting started in the loan modification business is figuring out which customers they should help and which ones they should say: thank you but we can’t help you with your situation.
If I told you the most important thing to do was to write down a list of the types of borrowers your company would help, would you do so? This important step will save you time, money and will help you avoid working with customers who you just can’t help.
So what you need to do is come up with your guidelines and I’m going to give you a few examples of what types of borrowers you should focus on helping in your loan modification business.
Make yourself a list like the one below and title the list “Our Guidelines for Our Loan Modification Customers”. Here’s an example list I came up with for another client:
- Customers must be behind in their mortgage payments or have received a notice of default
- The loan in question must be on the borrower’s primary residence, no investment properties or vacation properties.
- The borrower must want to stay in his or her home and be willing to pay on a modified loan payment
- Borrower must be able to afford a modified loan payment that will be a win win situation for both the borrower and the lender
- Borrower must be able to document his or her current income and ability to pay
- Borrower must be able to write a hardship letter (with some coaching form you) explaining in great detail the specific events or circumstances that caused him or her to fall behind in his payments on the loan (loss of job, separation from spouse, medical illness). Borrower should also be able to explain how he or she could afford the loan on realistic modified loan terms.
By getting this list together you will know how to part ways early from customers who contact you for help but who you do not have a very good likelihood of success in helping. To learn more about setting up a successful loan modification business, download this: How to Setup a Loan Modification Business
KJ Block is a mortgage professional and attorney at law who teaches people how to get started and to better manage risks involved with traditional, internet, and e-commerce marketing of mortgage products.
KJ Block can be reached by email at Info@MortgageRoadRules.com
Article Source: http://EzineArticles.com/?expert=Ken_Block
http://EzineArticles.com/?How-to-Start-a-Loan-Modification-Business—The-Most-Important-Element-to-Know-Before-You-Start&id=1476624