dssc
13 Posts |
 Posted - 01/27/2008 : 10:51:22 PM
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As the mortgage crisis continues and dislocates thousands from their gainful employment in the industry, many companies are diversifying their services in hopes of staying in business and making profits. One such service many mortgage brokers and professionals are leaning to is Debt Settlement www.debtsettlementservicing.com. Why? Because this is a service in great demand, especially because many consumers have few options left. Debt settlement isn’t new, it is a process where an individual with high debt balances negotiates a lower settlement balance with their creditors to clear themselves of the obligation and the harassment of calls from collectors.
Thousands of brokers and lenders are currently fighting for the few good leads to process into real loans. Fewer loan products are available and less consumers qualify, as banks scramble to remain solvent in the current mortgage climate. This has led to thousands of people being laid-off and many brokerages to close. But what many companies fail to realize are the leads that don’t qualify for home loans are ideal candidates for debt settlement. If marketing is getting you oranges instead of apples, why not start selling oranges?
In 2002, Congress passed legislation to make it harder for consumers to file for bankruptcy. This mostly affected those who would typically qualify for Chapter 7, but now are forced to file Chapter 13. Chapter 7 allows for total liquidation of debt and offers a “clean slate”, where as Chapter 13 is a “debt adjustment” where the consumer is forced to repay most of the debt owed. The new legislation created a “means test” to apply to consumers when they file to determine what Chapter they can file for. In addition to this, a new requirement was set in place to force all consumers who file for bankruptcy to go through credit counseling prior to filing. With the new laws, the costs associated with filing for bankruptcy and the long term affect on a credit rating, bankruptcy is no longer a considerable option for most consumers.
With few options available for debt relief and consumer debt at an all time high, the debt settlement industry has grown leaps and bounds. Beginning in small law firms who specialized in negotiating debt, the industry has grown with the support of Associations such as the International Association of Professional Debt Arbitrators (IAPDA) and The Association of Settlement Companies (TASC), which offer certifications for Debt negotiating and membership to settlement companies that meet procedural requirements.
It only makes sense for mortgage brokers who are fighting to stay open to find a new avenue of revenue and a debt settlement service is that avenue. Mortgage companies have the sales force in place, along with the infrastructure. They have dead leads that didn’t qualify for home loans, and with a creative strategy can easily create a website to connect with more potential clients.
Most brokers are choosing to affiliate with a Settlement Servicing company www.debtsettlementservicing.com to handle all the back end support for their clients. This drastically reduces the start up and operation costs. Settlement companies will service the client’s account so that the broker can focus on sales and often split the commission fee charged for the service. A reputable debt settlement company will offer any software needed and make available any training needed for the broker to operate.
Often compared to the Refinance boom of 2003, the Debt Settlement industry is growing with a high demand of potential clientele, making this the right opportunity for mortgage professionals looking for a new sell. |
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