Mortgage Brokers for Distressed Customers
In some cases customers find themselves in a situation where the banks are not prepared to help them and they are struggling to make their mortgage payments. This can impact ordinary house owners and property investors alike, and is generally a very scary and stressful time for the families involved.
Often these customers have arrears on an existing mortgage and no apparent way to catch up with the arrears and continue with the particular arrangement. There is a small group of mortgage brokers that specialise in helping these customers, and these mortgage brokers can find this little market segment very lucrative if not a little bit of extra work.
These customers generally are not in the position to pick and choose any deals that are offered, and so the success rate for the brokers that are able to find a solution is generally a lot higher then for the normal mum and pop customers. Around 70% of Mum and Pop borrowers do not go through with the deal, and all the hard work by the mortgage broker just goes to waste. Distressed customers on the other hand are desperate for a solution, and so not only is the broker getting a much higher percentage of completions but they are also generally getting larger mortgages for the customer than for the average mum and pop customer. The optimum solution for the distress customer is often a refinancing and loan aggregation solution, and these are almost always expensive. For the best mortgage brokers in Dunedin click this link.
In many cases the brokers will not use a bank but will instead use a non Bank lender or a high net worth investor who is prepared to take a somewhat larger risk with their money but obviously at a higher interest rate. Distressed customers are generally not in a position to quibble about a higher than normal interest rate, as all they are really wanting is a good solution that doesn’t involve them going bankrupt or losing the family home for example. Broker commissions may not be as high as they are with a Banks, but with the completions being much higher and the loan size being much higher for these brokers these deals are generally a lot more lucrative.
Brokers who specialise in this market will need to have carefully placed advertising and use Google AdWords to attract stressed customers, and while they may not see as many customers come through their door as might the large mortgage broking company that specialises in the mum and Pop customers, for the broker their business can be very profitable in terms of revenue per time spent.