If you are in the mortgage or loan modification business, maybe even the debt settlement business you certainly have an eye on the real estate market. I am still amazed at how much the bottom fell out of this market.

When will it turn around? There was some small victory-dancing going on last Friday as the National Association of Realtors told us July existing home sales were up 7.2%. So, we are out of the woods?

Probably not…

The Zillow blog had a good article by Stan Humphries, Zillow’s Chief Economist that might give us a better reality check.

Existing home sales may not be the best indicator to watch:

“As I noted last month though, a key number that we should be keeping our eye on is the inventory level of existing homes for sale.”

Housing inventory increase is matching sales increase:

“In June, the troubling issue was that the increase in the pace of existing home sales was almost matched by an increase in the rate at which homes were being added to the existing inventory (i.e., people putting their homes on the market). That month, 521,000 homes were sold and 481,000 homes were added to the for-sale market.”

“In July, this pattern got even more lopsided with more homes being added than were actually sold during the period.”

Some believe and I agree this new inventory is flush with foreclosures adding more price pressure. It seems that loan modifications have just been an interim stop-gap.

Are banks finding it more efficient and economical to go the foreclosure route-despite the government incentives? I would love to hear from a loan modification expert.

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“Sorry, I am already working with someone.”

The dreaded brush-off. You lost another one to the competition…or, did you? How can you turn this into opportunity? Treat them like a customer.

Don’t Lose Hope When You Lose

Treating prospects that you lose to the competitor like customers can be a very valuable sales strategy. Chances are these prospects made decisions based on factors other than service or knowledge. By putting a small amount of effort into these two areas, even though you lost the deal, you can probably squeeze out a deal or two.

Follow-up on Losses Like Customers

In a world full of self-service and do it yourself many are forgetting the profitability of service. It creates trust, reciprocity, and loyalty in a relationship-powerful allies in sales.

Service should be the first thing you offer to a prospect that turns you down.

“Yes, Ma’am I understand and I hope that Joe’s Mortgage Shack takes care of all your mortgage financing needs.” Leave it at that, but…

Go immediately to your calendar and set-up an appointment to call that customer back in 3-5 days. This is about the time a loan will enter into processing. Often mortgage brokers and lenders run into challenges with underwriting, getting stips satisfied, or hounding for docs. This friction often creates opportunity.

Call back with something like this: “Ms. Jones, this is Troy from Superduper Mortgage…We talked a couple of days ago. I just wanted to check in and make sure that Joe was taking good care of you. Do you have any questions? Is everything approved and good to go?”

Every so often that simple opening will have a frustrated customer tossing themselves into your capable hands.

Create a Loss Pipeline that Converts

In addition to that simple callback I also suggest getting them into your marketing database. Chances are they will be more than happy to get good value-based mortgage and homeowner tips/news. It will also keep you top of mind as things move forward with this mortgage, future financing, or referral opportunities.

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Even though mortgage and housing market news seems to be all negative, there are several opportunities to grow your business, particularly if you are helping homeowners with loan modifications. Homeowners are desperate for assistance. Meanwhile, bank and government programs are struggling to get the attention and reach all of those that are in need.

This offers enormous potential for those willing to work load modification leads and have the ability to offer consumers the help they so desperately need. If you are considering purchasing loan modification leads, there is no better time.

Let’s go over the basics of a loan modification sales process:

Loan Modification Sales Process

Step 1 – Contact the homeowner in need. First, create a marketing process that identifies likely loan modification leads, preferably in your local area area. However, there are large portions of the country in dire need to modify their existing mortgage loan , so don’t hesitate to broaden your market if you are appropriately licensed. Once you have your leads acquired, begin by contacting the homeowners directly.

Step 2 – Focus on stopping a foreclosure. If the homeowner moves into foreclosure-options become severally limited. So, your first order of business is to stop the foreclosure. No consumer wants the blemish of a bankruptcy or foreclosure on their credit history if they can avoid it, which means that you are likely to have a very attentive audience. Focus on the benefits of a loan modification and shape your pitch around their needs, not what is in it for you.

Step 3 – How a loan modification works. A loan modification is a renegotiation and restructuring of the terms of an existing mortgage. This solution benefits both the bank and the borrower saving the expensive nature of foreclosures and the homeowner’s home.

Step 4 – Guide the borrower through a loan modification. Your primary value to the homeowner is quickly and efficiently getting them to the right people and into the right program. Spend your time understanding and creating good processes to expedite all of the various loan modification programs available.

Things to Look Out For

Unfortunately, there are many loan modification scams–companies taking advantage of stressed consumers and it will be important to differentiate your business. Take the time to build a relationship with the homeowner so that they feel comfortable working with you. They’ve likely been through the ringer and may be a little hesitant until you can gain their trust.

Loan modifications are a great way to improve your business, but they must be handled carefully. By following these guidelines, you’ll be well on your way not only to a successful loan modification business, but also to helping someone who is in dire need of your assistance.

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I have always thought this genre of “luxury real estate” brokerages were interesting. They are really no different from traditional, main line real estate brokerages. With one MAJOR difference–customers pay a premium to work with them.

Okay, so there are lots of differences between a real estate broker and a “luxury” real estate broker. But, it all ties back to the most important one: They get paid more. Let’s look at this model and see if you can bring it to your mortgage business?

Customers Always Come First

Every luxury brokerage I have ever worked with was fanatical about the customer–their experience, their needs, wowing them. Nothing was too much for the customer. Every customer is treated like a Hollywood star.

Are you doing this for your mortgage customer? Will you go to their house, work, a coffee shop, airport to get their application? Will you call them when nothing has changed to tell them everything is in order and on track? Will you work with a spouse or business assistant to collect the necessary documentation so as not to be distracting to these elite clients? Will you pick-up or hand deliver documents?

All of the Details are Perfect

Not a hair out of place. Not a call left unreturned. No mistakes on ordering appraisals, title, etc. And, if something does go wrong you are the first and fastest one to tell them what happened (without any excuses) and how you are already fixing it.

You show up on time, call when you say you will, and show up with a nice pen for closing.

Every Employee Exudes Professionalism

You are dressed for success. The client should never see you in a t-shirt and board shorts. Your hair should be cut and groomed. And, please have clean, trimmed finger nails.

Your language should be intelligent and minus any hint of clang or profanity. Like you mother always told you–lots of pleases, thank-yous, yes sirs, and madams.

Everything is Shined and Glossy

Your presentation should be like a military review processional–every thing spit shined and ram-rod straight. All of your documents should be clean and legible, closing packages bright and tastefully branded, your closing room feels rich.

If you want to operate a luxury mortgage company then simply take these easy steps to increase your game. You will have a lot more raving testimonials and clients won’t fuss about your high fees any more. Customers love to pay for “luxury” and brag about it.

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Are you limiting your business? Are you undermining it’s potential? That may seem to be an absurd question, but I would guess most of us are putting up roadblocks to big success.

If you are like more debt or mortgage professionals your business started offline. You learned to build prospects by networking at the rotary club, bringing donuts to your favorite real estate broker, and doing deals at your clients’ dinner tables. That was your business. Your opportunity was within the confines of a reasonable car ride. You could only grow as fast as you could shake a new hand, send a personal note, or visit a referral partner.

The world has changed. The Web happened. Blogs made us local experts, social networking connected us, and now we are all global business owners–should we choose to accept the challenge.

Do you hesitate to call people outside of your town or state your audience? Are you skeptical of how connecting with a real estate agent in another state can help your business, as a single state licensed broker? Unlock your potential. Think nationally, even internationally.

People have never been so connected and mobile. Your opportunity for referrals is limitless on the Internet. People you don’t even know can point to your website, blog, or Twitter to refer a friend moving to your area, needing to sell in a relocation, or struggling with their debt.

Stop limiting your business–consider your national audience the next time you blog or tweet.

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Of course, I would argue that aged leads are the best sources of affordable sales marketing. However, I would encourage the smart mortgage or debt business to balance their marketing sources. Creating an effective blend and diversity will serve to smooth out volatility in any marketing channel.

Inherently there are peaks and valleys in any marketing source. Whether they are seasonal, economic, or business cycles there will be variations in your market channel performance. However, shutting channels off and on are expensive and inefficient. The smarter strategy is to nurture multiple channels of leads.

Here are a few strategies I suggest:

Online Leads

Regardless of your preference for real-time or aged leads you should have Internet leads in your marketing mix. There is no more efficient way to get a steady flow of high-intent, opt-in consumer inquiries for mortgage or debt. The added advantage is you can specifically screen for your target customer or product profile. In this tight credit market that means having to say, “no” less often.

If you want to really maximize the return on this channel you can add lead nurturing to the mix. By purchasing cheap aged leads you can build a long-term database of prospects. Continually marketing against this database with valuable email newsletters, market updates, and quick, personal check-ups will yield many more deals than one power-dialing session through the lot.

Pillar (Partner) Business

Establishing a close network of referral partners with the professionals in related industries: real estate, accountants, attorneys, and financial advisors is a smart sales multiplier. These channels can give you a small volume of very good clients. Creating a network of highly ethical and value focused professionals will help you lock-down the customers in your area. Building that network outward can even scale you beyond the borders of your local community.

The secret here is making everyone of those clients precious. Going beyond to create a phenomenal client experience with other clients will yield you a steady flow of this high-quality business. Doing it consistently, and reciprocating on referrals will grow your volume in this marketing channel.

Direct Mail

Using the postal system has fallen out of favor. The performance of direct mail has consistently fallen over time. This affect is attributed to saturation and the increased use of the Internet to find mortgage and debt solutions. However, if you have noticed your own “junk mail” has probably reduced significantly during the recession. This is bringing new opportunity to this method. Used in a good way to raise the awareness of market shifts and your ability to help can yield some pretty attractive numbers.

I recommend using it in conjunction with a client-loyalty program and in a smart way against your aged lead database of prospects. Often sending direct mail in relation to an online inquiry that seems to have gone dead can reawaken the client–there is something about mail that make you feel like there is a “real” person involved versus a straight telemarketing play.

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Chances are if you are visiting this blog you buy Internet leads. Starting with that assumption, I have a very important question for you. Do you have a mortgage or debt website?

Why is this so important? Think about your lead (your customer). They are Internet savvy consumers that went online to research and inquire about a mortgage or debt solution. Therefore, it is very likely that the first question out of their mouth will be: “What is your website?”

So, let’s take a few moments to discuss why having a website is so critical to being successful with Internet leads.

Internet Leads are Web Users

The customers that are your Internet leads are by definition Web users. They landed in your sales queue because of a website. They will expect to continue using a website to aid their mortgage or debt process. So, if you want to hold the attention of this consumer you need a website.

A website also gives you a built-in sales assistant. You can refer your leads to your website for answers and compelling information to do business with you. Even after you engage that lead, this customer will return to the Web to research and verify your sales process and products. Make sure you have somewhere for them to go. Otherwise, they will be using your competitors’ sites.

Building Credibility and Trust

Again, leads are Web users–they will instinctively go to the Web to validate you. Make sure that you have a professional website. One that quickly shows your prospects that you are experienced, credible, licensed, and legitimate.

Your website should provide detail information on your mortgage and debt products, testimonials, licensing details, and contact information. This will make your customer immediately more confident in working with you.

Increasing Referrals

A website also gives you great additional opportunity with that mortgage or debt lead. Having a website gives that happy customer a really easy way to refer their friends and family to you. Social networking tools like Facebook and Twitter make this increasingly important. These tools are used to quickly and easily push around links and recommendations.

Your website also encourages this social referral. Simple tools can make it easy to Tweet or Facebook an interesting article from your mortgage or debt site. This is free marketing with the added punch of a trusted endorsement.

Enhancing Partnerships

A website also gives you the ability to enhance your partnerships with real estate, legal, and accounting professionals. Making it simple to recommend and refer clients to these partners will quickly increase your own referral business.

Also, for the Internet lead (customer) checking you out for the very first time–these partners add value and credibility to working with you on their mortgage or debt solution.

Regardless of your lead buying strategy, you need to have a website component to improve the performance (conversion) of your leads.

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What marketing conferences promise to be the top spots to learn and grow your marketing expertise?

Here are a few worth checking out in 2009:

• LeadsCon (March 4-5, 2009)
• PubCon South (March 11-13, 2009)
• ad:tech (various locations and dates)
• Real Estate Connect San Francisco 2009 (August 5-7, 2009)
• TargusInfo (September 23-24, 2009)

I am certain I am missing several. What and where are they?

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