Find the light for troubled borrowers via solid partnerships

Samuel N. Asare, senior financial strategist, Laser Financial Group

As published in Scotsman Guide's Residential Edition, January 2010.

Many mortgage brokers dream of an endless stream of loan prospects with spotless credit. In the real world, however, not all willing homebuyers are able homebuyers. Various reasons account for this, including credit challenges.

So what do you do when you find out your loan prospects have bad credit? Do you send them away without guidance and ask them to come back when their credit is better? If so, you might be missing an opportunity to grow your business and your income.

Help is available for borrowers with challenged credit. Brokers who assist them stand to gain from facilitating the process and eventually closing their loans. In addition, brokers who capitalize on the opportunity to help challenged buyers improve their credit -- assuming that is the only problem -- can receive the benefit of word-of-mouth advertising.

To help credit-challenged borrowers, brokers should partner with a good, effective credit-repair service. Notice the choice of the words good and effective. The service with which you choose to partner should actually repair credit in a way that's not overly complex or expensive.

It's also important to form your partnership with a real person and not a nebulous entity represented only by a Web site or toll-free phone number.

Much like any other business alliance, your partnership with a credit-repair company should be based on solid ground. To make sure of this, perform your due diligence and be completely satisfied that the person and the system you choose are trustworthy and won't somehow harm your business, if even by association.

Recall that the word-of-mouth advertising you generate from this partnership also can work to your detriment if customers feel harmed rather than helped.

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