Dealing with Hard to Do Mortgage Refinance Leads
It’s time to talk about those hard to do mortgage refinance leads. Quality lead generation experts have excellent systems in place making sure that all leads are hot, high quality, and double verified. However, as 2007 progresses, it’s inevitable that some internet subprime mortgage leads are going to be more of a challenge than others.
Homeowner Backlash
Mortgage refinance loan brokers have to be prepared for and expect a backlash from consumers that is starting to build right now and will only get worse. The fact is that over the last five years or so, many mortgage applicants have involved themselves in exotic and nontraditional mortgage products that have left them with hundreds if not thousands of dollars a month in payments, and a sour taste in their mouth about mortgage brokers.
Particularly when we’re talking about subprime borrowers, it’s inevitable that brokers and LOs are going to have to deal with a grumpy bunch of borrowers.
Despite the lead verification process, this particular scenario can tend to develop: a lot of homeowners are going to go online looking for refinancing because they’ve feel that they’ve been “ripped off” by brokers in their own community.
These online generated internet subprime mortgage leads are eager for refinancing, but they’re jaded about the process because they got involved with mortgage products that were not designed for them.
How it Happened
Nontraditional mortgages were designed for borrowers that were light enough on their feet to take a chance, but that anticipated strong growths in their financial future. Instead, many subprime mortgages and ARMs went to homeowners with very few prospects for increasing their income as their mortgages began to cost them more each month.
If anything, many new homeowners that got involved with these exotic products have built up their expenses in other areas such as cars, children and home renovations, without increasing their incomes.
Why is this relevant? Because whether or not their problems with their mortgages are the “fault” of the broker, the blame does get placed squarely on the brokers head. This means that even though these borrowers are seeking refinancing – perhaps even require financing somewhat desperately – they are not going to be easy to deal with. They are going to be hard to do mortgage refinance leads.
Making it Work to Your Advantage
There are a few things that you can do to ease this process, and make even the most reticent internet subprime mortgage leads warm to you and to the refinancing process. Next time you come across one of those challenging leads, try some of these simple strategies:
- If you know that you’re working with an subprime borrower, assume their frustration, and bring up issues that likely concern them BEFORE they bring them up with you.
- Be a good listener. Your client may just need to vent, so sit back and let them take out their stress on you, and then get your job done.
- Begin by suggesting an extremely conservative alternative to their current mortgage. They will probably not be interested, but they will instantly label you as cautious, and these people want someone who is going to be cautious with their money and their future.
- Avoid using high-pressure sales techniques that they may have heard before. If you get caught feeding these hard to do mortgage refinance leads a line, they may instantly become a dead end.
- Never point out that their situation is not your fault, or that their first decision was a mistake. You want to distinguish yourself from other brokers, but in this situation, accepting responsibility on behalf of brokers everywhere is the best way to put a crotchety lead at ease.
If you work with these basic strategies, you’ll find yourself quickly able to convert large amounts of leads, whether they be internet subprime mortgage leads, or tele-generated ARM leads. The key here is to strike a balance between being that hard to do mortgage refinance lead’s friend, and not feeding them any crap. Find this sweet spot and you will find a world of opportunity opening up right in front of you.
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