Today’s post was inspired by recent interactions with two loan mod clients (who will remain anonymous) whose current emotional state is just a snapshot of what is occurring on a larger scale.
One client, a female, is an acquaintance of one of my business partners. She works in a professional field, is educated, has children, etc.
We’re waiting on one final document to submit her modification package to her lender, but she doesn’t seem to be able to get it to us. The fee is not the issue, since we’ve already received it. Most times the doc package and fee arrive at the same time.
Psychologically, it’s a big commitment to make, especially with all the negative media about “loan mod scams”. To be fair, there are some “boiler room” operations out there and you need to watch out, which is why we created the free report of questions to ask before you hire a mod firm.
But, we’re beginning to see the psychological fallout of the housing crisis.
This particular client works a lot of hours, but surely she can find the 10 min to return one document to get the process started with their lender, especially with a looming foreclosure date about to be set.
She seems to be a bit frozen with fear of the unknown, and unable to take the final steps to solve her problem.
Another client (also a friend) is having difficulty just getting out to find a job. This is someone who is skilled, has an excellent work ethic, always paid his bills and has never had a problem finding work.
I spoke to him at length about my own financial crisis after Katrina wiped out our business, hoping that the shared experience would remind him that his self image is not tied to his ability to pay his bills.
The most we can do for him right now is help with a forbearance agreement (a temp. solution) while he finds a job to justify a loan modification with his lender.
But, the job layoff he experienced has been a devastating blow to his ego and is evidenced by his self sabotaging behavior and inability to do what it takes to find other work.
This is the human face of this crisis and I don’t see the psychological impact talked about very often in the media.
Since I’m in this business every day, I’m always looking for ways to reach more people, help them make a decision faster, and get their lives back in order by helping them save their home.
Once saving their home is off their plate, they can focus on the other financial aspects they need to take care of.
Because of my speed based/ solution oriented approach to reaching more people before it’s too late, I sometimes forget the emotional trauma they are experiencing.
But, it doesn’t take long to remember back when I was in the same position. I remember the letters from lenders. Those judgmental, callous bank representatives that had no regard for our lives being turned upside down by a natural disaster.
Not to mention the inability to collect on insurance claims quickly, to repair the properties before we started paying on them again.
So, as I remember back to what we went through, and how we were treated as second class citizens, I remind myself that we’re not only offering a service to keep your home.
I can also empathize with what our clients are going through and to afford them the dignity needed to remind themselves they are not their bills, period.
Remember, this is a national crisis and what’s important is to take a balanced approach to getting yourself out of this problem.
I don’t prescribe to the “victim” mentality, and neither should you. I also will not allow any lenders to browbeat me into feeling less worthy as a human being because I might have run into difficulty.
I won’ t even get into the fraudelent mortgages sold by many of these lenders, but if you add that to the mix, there’s no reason to allow the inability to pay your mortgage cripple you psychologically.
One last thing to remember. We, as Americans have it pretty good. I’ve traveled overseas and have seen refugee camps.
Some people this very minute are just looking for basic necessities like food and water.
When you put your housing crisis into that context I hope you can separate your worth as a human being to yourself, friends, family, loved ones, etc. and remember you are not your bills.
Now, go out there and deal with this problem head on, until it’s behind you and you will restore your confidence in dealing with any other financial issues you may be experiencing.
Tags: depression, Loan Modification
