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Mortgage lenders offer money to non-paying borrowers in select states
Mortgage lenders are beginning to offer money to borrowers who don't pay to get them to take care of their property until it can be sold in a short sale.
USA Today reports three of the nation's biggest banks are offering anywhere from less than $3,000 to up to $35,000 to non-paying borrowers in states where there's a long process to foreclosure. And believe it or not, that's actually good business, as I'll explain later.
Judicial vs. non-judicial foreclosure states
Let me set a little background here. Mortgage foreclosure procedure is determined by where you live and there are two kinds of states: Judicial foreclosure states and non-judicial foreclosure states. See what kind of state you live in.
In judicial foreclosure states, a lender has to go before a judge to prove they have a right to foreclose. That means documenting that they own the mortgage and that the homeowner hasn't paid. But doing that has proven to be very messy in light of the whole robo-signing scandal.
In non-judicial foreclosure states, it's not necessary to go before a judge. The lender simply takes your house if you're not paying. They're required to give you notice, but that's about it.
A smart business move?
Why would the banks pay people who aren't paying? Think about it like this: If a bank has to foreclosure or a house goes abandoned, that house's value declines rapidly. Copper is stolen out of the HVAC, appliances are stolen from inside the home and vandals generally tear the place up. Pretty soon the bank has a worthless property sitting on its books.
So by cutting a deal with the non-paying borrower, the bank can insist that the person keep the house in good shape and require them to market it as a short sale. That helps everybody in the end.
The eventual next buyer gets a well maintained home; the bank avoids the expense of foreclosure; and the delinquent borrower is (generally) protected from being sued for deficiency over the bank's losses when a short sale is done, though their credit does take a hit that's equivalent to a foreclosure.
Again, the key thing to know is lenders are only doing this in judicial foreclosure states. And the report in USA Today typified the frequency of these payouts as both "random and infrequent" and "limited but increasing." So know that it's something of a shot in the dark, but one that might work out for you.
Here's a quick rundown of what lenders are reportedly offering:
- Bank of America is paying between $5,000 and $25,000 in the state of Florida. No word yet on a national program. Call 1-866-880-1232 for more details.
- Wells Fargo is paying between $3,000 to $20,000. Call 1-800-678-7986 for more details.
- Chase is offering incentives of up to $35,000 as a national program. Call 407-248-3945 for more details.
Treat employees well so your business will thrive
Next >In business, it's not just about having the right product, price point or location. It's about service. Your profits depend on it.
Here's an example. "Builder's Square" was a home-improvement warehouse designed by K-Mart to be a direct competitor of Home Depot. They looked like Home Depots, had similar products, but the service wasn't up to par, and they eventually went down.
Home Depot itself, after years of growth, started lagging in the service department after new leadership fired the full-time employees. Instead, they hired cheaper part-timers who didn't have nearly the level of experience or knowledge to offer customers. Their sales suffered mightily, and they've spent the last few years trying to undo the damage.
Simply put, if you value your employees, they will treat you well in return, and your business will thrive.
Cornell University did a study that shows that restaurant personnel in particular are treated poorly. The industry in general treats its staff as temporary--which becomes a self-fulfilling prophecy. The high turn-over costs the food industry a great deal in lost sales and training.
Companies who understand about treating their employees well do so much better in the long run. Chick-fil-A is a prime example of restaurant that values its employees and managers, and they are among the fastest growing, most profitable chains in the nation.
So follow Clark's rule of thumb: If you want to do well in business, romance your employees, so they'll romance your customers in return. (Figuratively speaking, of course!)
Sleep-texting: A growing epidemic
< Prev Next >Do you sleep next to your cellphone or tablet and start tapping on it, before you even get up in morning? You're not alone.
The Minneapolis Star Tribune reports that there's a new epidemic of "sleep-texting."
Texting has become so commonplace, especially with the young, that people are instinctively reaching for their phones and messaging others when they're groggy and not fully awake.
This happens most often with those who send or receive more than 100 texts a day--a category which over 1 in 3 students fall into. Most of these students use their phones as their primary alarm clock too, ensuring the phone is right by their bedside.
So why not get yourself a real, old-fashioned alarm clock or clock radio. And start charging that phone in the kitchen or office, not by your bed, so you don't inadvertently send something you may regret later!
Websites and resources mentioned Feb. 22, 2012
< Prev Next >Milepost.com - Clark recommends this book when planning for an Alaska trip
BlueNile.com - Online discount sellers of diamonds that allows full 30-day refund
Mobissimo.com - Cheap international airfares
MissingMoney.com - Free national search for missing money
Top retailers named by American Customer Satisfaction Index
< Prev Next >Is there something in the water in Seattle that creates great customer service? Three retailers from the Pacific Northwest make strong showings in the latest American Customer Satisfaction Index (ACSI) tally.
In the word of Internet retailing, Amazon continues its reign at the top, where it's been since 2000. And when it comes to traditional retailing, both Nordstrom and Costco Wholesale are neck and neck as the best brick-and-mortar retailers.
There must be something in the culture up there that all three Washington State-based companies -- in addition to Starbucks -- really focus on customer service!
Who's not doing well in retail? Wal-Mart. The mega-retailer is in last place in both the supermarket and retail categories. And while Wal-Mart just reported their latest drop in earnings, they're still a huge profit machine with earnings of $5 billion in three months.
Speaking of supermarkets, the top supermarket is the country is regional chain Publix, followed by national chain Whole Foods.
Now, here's a quick look at other sectors examined in the latest ACSI.
When it comes to stock brokerages, Schwab, E-Trade, Fidelity and TD Ameritrade were all neck and neck. So how do you decide among the four discounters? Pick by the services or by which one offers you the greatest convenience. You can even do your banking with the discount stock brokerages, and they all score much higher for customer satisfaction than the big banks!
Finally, when it comes to drugstores, CVS, Rite-Aid and Walgreens are equally hated versus independent, regional or local drugstore chains. Not to mention the Big 3 of the drugstore world are routinely among the most expensive places to shop for groceries.
Preview the latest segment of Clark Stinks
< PrevMost callers love Clark and rave how his advice helped them. But what about those who say, "What was he talking about? Clark stinks!"
For all of you, Clark has set up the Clark Stinks message board where you can post any grievances, gripes or beef you have with the consumer champ and his advice. Once a week, executive producer Christa goes through the entries and reads several to Clark on the air for him to respond.
If you missed today's on-air segment, be sure to visit the Clark Stinks podcast page on Friday to hear it in its entirety. (Editor's note: We give our affiliates the courtesy of 48 hours to air show material before we post it online.) For now, you can read the posts that Clark responded to this week: