The "Golden Hour" of Foreclosure Intervention

As our industry works on solutions and challenges to assist potential or current homeowners in default, it is clear that the primary hurdle is communication and a better relationship between the borrower and their lender/servicer.

Why such a difficult task where the efforts do not always yield the best results that benefit all parties involved? In a landscape of centralized servicing operations along with technology advances, it is rare that there exists the neighborhood relationship between a borrower and his/her banker. First-time or credit-challenged borrowers hope for loan approval through various avenues presented to them, and all they know is, the all-powerful "Loan Underwriter" is evaluating them for loan approval.

This creates an anxiety where all that is important is getting Past this part of the process in order to get the home they always wanted or dreamed about, thus the approval becomes more important than the Terms & Cost.

Did you catch that last part? The Approval becomes more important than the Terms & Cost of the loan for the borrower. At that point all they want is to sign the documents, get the keys to their home and wait for the payment due date no matter what the outcome brings.

When the loan payments become unmanageable it is a colossal heartrenching reality for the homeowner who does not know how or where to begin looking for help, the end result being some form of default looming near. Never having a personal relationship in the beginning leads to uncertainties that create an avoidance of the lender/servicer, which then becomes a common behavioral defense mechanism of fear and denial.

WAIT, we have missed the best opportunity to develop a relationship, educate and provide tools at the most intimate part of the process "The Local Closing Table". Much like the "Golden Hour" in a medical emergency where the actions in that first hour determine survival and quality of life, we can provide intervention at that most critical time. Let's not just point out the default clause at the closing table but explain the vital role of communication with the lender/servicer and provide tools of understanding, in the event that it becomes a reality.

Mahony Title & Land Services has recognized this "Golden Hour" of importance and is going to educate our customers on the role of communication as well as provide a simple-to-understand handout of terms related to the default process along with some solutions offered by lender/servicers. They will have 3 sources to obtain this informaiton from our office, at the closing table, on their CD closing package and attached to their web-based file where they can access information as needed.

Our information will be simple to read and we will update the online file information as we make changes or other solutions become beneficial. We cannot change the history of the industry but we can help new homeowners become more informed with new resources and relationships.

This is not only an important opportunity for the industry as a whole but Mahony Title & Land Services believes this is important to the communities where we live. It is not rocket science but basic face-to-face customer service.

Please make the best use of your Golden Hour!

Kevin Mahony
President
Mahony Title & Land Services
www.mahonytitle.com