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  • 20 DEC 2007

    Debt Settlement 101 For Mortgage Brokers

    A post by Joey Liner as Hot Transfers, Lead Generation, Marketing, Mortgage

    Post By
    Joey Liner

    Like most businesses concentrated in mortgage, we are all looking forward to wiping the slate clean and going into 2008 with a fresh start.  With that all that being said, when you take a look at other industries that did well in 2007, the Debt Settlement industry had a great year. 

    Debt Settlement is a for profit business model, as opposed to the other side of the business that is not for profit, credit counseling.  A consumer who has at least $10k in unsecured debt (credit card, store card or hospital debt) that simply can’t afford their minimum monthly payment is a perfect candidate for Debt Settlement — as long as they make some monthly payment.  For consumers to make a monthly payment, they should have some sort of income to support that monthly payment — so a full time job or even a disability payment does suffice. Typically the monthly payment is 1.5% of the debt load, so for $10k in unsecured debt the consumer would have to agree to make a payment of a minimum $150 to enroll in a program.  When they commit to the program their credit score will go down approximately 60-90 points depending on how much is being settled. 

    Debt Settlement services are a great opportunity for mortgage brokers to diversify their offerings. For those of you that are not in Debt Settlement, let me explain to how similar it is to mortgage sales: 

    1. Most mortgage brokers that have bought leads online over the past 7 years through the boom have targeted sub-prime. Debt Settlement is ALL sub-prime.  Instead of telling Mr Smith who is behind on a payment and has a 500 FICO that there is nothing that you can do for him for his mortgage, now you would be able to help those consumers and put them in a program.  Most Debt Settlement Companies want to target consumers that are in hardship.
    2. Consumers are going on-line in record numbers seeking help and filling out forms to get quotes. Obviously, mortgage brokers are the most experienced when it comes to dealing with and purchasing semi-exclusive Internet leads.
    3. The target market is the entire country, not including just a handful of states that don’t allow settlement or where it simply is not worth it with caps on fees — very similar to mortgage as well.
    4. The sales process is similar in a way where you will be sending out packages to the consumers overnight with their application for the program and they will have to return them back to get enrolled.

    All these similarities aside, there is one major difference between mortgage and debt dettlement when it comes to working with Internet leads. Folks in debt are extremely hard to reach by phone — they are avoiding creditors constantly by dodging phone calls, checking caller ID, and putitng up their own personal firewalls.  

    So why am I telling you this?  A lot of your friends or co-workers have probably said to you “What have you heard about debt?” “Should we get into debt settlement?” “Do you know anyone doing debt right now?” etc…

    I wanted to let you know that DoublePositive can be a solution for you in Debt Settlement just like we are for mortgage. We recently joined The Association of Debt Settlement Companies, and we are actively delivering LIVE Hot Transfer Debt Leads for our clients — many of whom used to be in the mortgage origination business.

    If you have any additional questions in regards to this program, please don’t hesitate to give me a call.  I can also put you in touch with some of our good friends who are folks that will allow you to join their net branch affiliation and do your back-end processing so you basically can get trained and start up tomorrow.  These folks can explain the fee structure and payout better then I can as well as they will give you some basic sales training and tips for success.

    Have a happy, healthy holiday season.

    You just read:

    Debt Settlement 101 For Mortgage Brokers by Joey Liner

27

    lori 1508 days ago

    Hi,

    Just found your co. surfing around. I’m getting started in the Loss Mitigation industry. What are your fees for leads, are they exclusive or going out to others as well? Do you have an exclusive program?

    Thanks in advance for your reply, lori

    Bab 1508 days ago

    I am in the mortgage business still closing loans but I need to get my bottom line to the next level, this is intriguing news to me. However I have no idea about debt settlement. Get you please tell me more or put me in touch with that can.

    Thanks

    Chris B. 1508 days ago

    Thanks for all the blog comments and emails about Debt Settlement 101 for mortgage brokers. For those who would like more information, feel free to call either Chris Beauchamp or Joey Liner at DoublePositive — 410-332-0464. Thanks for your interest.

    Chris

    Fernando 1508 days ago

    Please send me info regarding pay structure on this. P.S. We still have to talk about the mortgage leads. I never got a chance to call you back.

    ish greene 1508 days ago

    how do i get info debt mgmt

    Mike 1508 days ago

    Hey guys,
    How are these leads generated? Are you guys generating them yourself or are they from a third party, similar to your mortgage product?
    Thanks and have a happy new year!

    Freda Sangater-Marks 1508 days ago

    More information needed. How are leads generated and at what cost?
    Thanks and “A Blessed 2008″

    laurie 1508 days ago

    Hi,

    Can you send me the fee structure as well, it’s sounds like a viable avenue:)

    John O. Santelli 1508 days ago

    How do I get started.

    And…what about commercial mortgage leads that I can use. I need a lot of commercial mortgage leads of all types.

    Thank you…….

    John O. Santelli
    516/767-9331
    FAX: 516/767-3710

    Jessica 1508 days ago

    Please send me more information

    Gene Ford 1508 days ago

    I have found that debt consolidation is not the answer due to how lenders look at the results as a BK 13. I have found a fix and will share it with anyone that calls me at 512-293-4675. I have run ads in the local news papers BUY A HOME IN 12 MONTHS OR LESS REGARLESS OF YOUR CREDIT SCORE, THIS IS NOT A JOKE. Mortgage professionals have beating my door in to find out how I can claim to finance someone who has a 400 credit score in less than 12 months, we can actually get them the mortgage in 6 months not 12 but I like to under promise and over deliver. Call and find out the secret. you can do it along with this program.

    Donald T. Pejch 1508 days ago

    I’m interested in this and my first two clients would be my sons

    Will Ahmadi 1508 days ago

    Wow, sounds real intresting and would like to contact the companies that you know would give me more info. Please send me thier contact info.
    Thanks

    Kelly Nelson 1508 days ago

    If people are looking for a great career they should look into mortgage protection sales. I still own a mortgage company but offer this product to all my clients and they really like knowing if something happens their home will be paid off. If you are interested you can offer this in every state and my emails is knelson@nationalequitymortgage or call me at 612-558-1293.

    Steven Todorovic 1508 days ago

    Any info on this would be great.

    Keith 1508 days ago

    Joey

    Please give me a call 414 737 1444 after th new year it has been a while since we talked last. Interested in your new offering

    Jim Evans 1508 days ago

    sounds interesting…contact me

    Lead Guru 1508 days ago

    God I love all the comments, How do I get your clients to link to my website and buy our product! LOL J/k. Happy New Years DP! My favorite is Donalds response “My first two clients would be my sons” LOL

    NANCY MOFIELD 1508 days ago

    Hi, I am interested in this is as well, please e-mail me a website that goes more in depth on costs and exactly how it works.

    Thanks
    Nancy

    michael fletcher 1508 days ago

    i am interested in speaking with someone about the debt settlememt program

    pls email me or call

    michael
    305 274 8744 off
    305 412 9479 fx

    Roger Beck 1508 days ago

    There is considerable information on the Debt Settlement industry on Wikipedia at:

    http://en.wikipedia.org/wiki/Debt_settlement

    and on the new “Uniform Debt Management Services Act” proposed for all 5o states at:

    http://www.udmsa.org

    This is a great industry with tremendous potential.

    Roger

    Kevin 1508 days ago

    send what you got. I need it
    thanks
    KEvin

    Lori 1508 days ago

    Do you offer leads for Reverse Mortgages in Wisconsin and FLorida as I am licensed in both states?

    Kelly Nelson 1508 days ago

    If people are looking for a great career they should look into mortgage protection sales. I still own a mortgage company but offer this product to all my clients and they really like knowing if something happens their home will be paid off. If you are interested you can offer this in every state and my emails is knelson@nationalequitymortgage.net or call me at 612-558-1293.

    I know have received a lot of calls because my email wasn’t complete on my first post but I have fixed it.

    Gordon H. Wright 1508 days ago

    Hello all,
    I hope everyone is getting a good start for the 2008 New Year.This
    Debt Consolidation is the final solution for those that want to improve their Lives and credit History without filing A B.K.Bottom line….what is my commision structure?

    Chris Carter 1508 days ago

    I have tried several online businesses and think that this is one that might have a future. Individuals in debt will attempt to clear it up by taking a new mortgage if they can clear up their credit enough to qualify. In other words … how do we get past the catch 22?

    Tim 1508 days ago

    Hello All,

    We are a debt settlement service company that services debt settlement accounts. Currently we service accounts for over 70 mortgage companies nationwide and our services are available in 48 states. Typically the fees for debt settlement are based upon the current unsecured debt that is enrolled in the program. I can be reached at 1-800-430-7009 to discuss how you can begin selling debt settlement accounts today and build a residual income that can last for 36 months.

    Tim Daniels
    Business Development
    FDN Solutions
    1-800-430-7009

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