How You Approach Problems is Crucial to Your Success

In this business, problems are going to come up.  Have you had a 'fire' to put out lately?  Exactly.  You may try to know every nuance of each loan program and diligently work make sure your borrowers have all their ducks in a row before submitting a file; but we all know problems will creep up.  Sometime we may be at fault, but more than likely, it is something that was beyond our control.

That doesn't mean it isn't in your control once you know about it.  How you handle a problem as it arises is critical to your reputation, peace of mind and continued success as an originator.  Let me give you a few suggestions.

1.   Immediately look for a solution.  If you can take care of the problem within a short time, get it done and then life can go back to being fun. 

2.  If a solution must involve other people, do not wait to ask for help.  You may be tempted to sit back and worry about the implications of asking for help...big mistake.  Being proactive in this situation is the best course to take. 

3.  If it looks like a solution will take a while, contact the parties that will be affected (borrowers, Realtor, builder etc.) If you feel reluctant to pass along the bad news - get over it!  Taking action is the only appropriate way to handle your business.  They will appreciate your action-oriented approach.

4.  Sample script to Realtor or borrower:  "I'm calling to let you know that we discovered a problem with the appraisal (title, bank statements etc.)  I have already (list what actions you have taken) and will stay in touch with the appropriate people to make sure this is resolved.  I hope to have this taken care of by (it is important to give an approximate time frame, but be conservative.  It is always best to solve problems sooner than expected.)  I will contact you tomorrow to give you another update.  Please know that we are doing everything we can to get this resolved."

This approach to problems serves many purposes.  The stress of problems will become more manageable as you feel in control.  Realtors will want to trust their future clients to you.  They know problems come up.  They just don't want to work with a lender that doesn't take care of them properly.  Borrowers will appreciate your straight-forward manner and closing will still be a happy event, even if their were problems during the process.

Comments

[Teresa Berry]

This is great advise because once a problem arises, it won't go away just because we click our heals together and wish it so. When something unforeseen becomes a problem that's not within our control it's natural to feel some anxiety. Informing and updating all parties involved or who will be affected shows that you are seeking solutions and through truthfully explaining the circumstances it also lifts the burden from being your own. I've had it happen that the answer to one dilemma came from one of the parties to a transaction that would have been affected as well. Everyone working on a deal wants it to succeed - so avoiding, ignoring, or delaying known information to others involved is likely to be interpreted as having something gone sideways anyway. Being informed and updated in itself can ease some stress between parties. Allowing time to prepare for a worse case yet at least having an opportunity to help become part of finding a solution. And sometimes that part can be as simple as waiting an extra day but if it is not expected or warned of...that one-day may as well be a year.
Thanks for sharing!
Teresa Berry
Real Estate Agent/Loan Officer