A few years ago, there was absolutely no way you could get a better return on your investment than by buying a debt consolidation lead. These mortgage leads were worth their weight in gold. These were people with sizable amounts of consumer debt, and they typically had higher interest rates on their mortgage. And, just to sweeten the pot, it wasn’t very hard to get a debt consolidation loan lead that also had great credit.

But, the real reason that these leads were so strong was that there were so many different programs available to send these borrowers through. If they did not qualify for Conventional financing, you could look to the FHA program. If they did not qualify for the FHA program, there were literally hundreds of different Non-Conforming lenders out there. Each one had their own unique niche, and if you looked hard enough, it was very rare that you ever had to turn a client down.

Now, granted, the interest rates on these sub-prime loans were not great, and to make matters worse, they were, for the most part, two-year adjustable rate mortgages. But, the good thing about debt consolidation loans was that when you offered a refinance at 9%, it was still considerably lower than the interest rates on their credit cards, and as a result, you could save your borrowers considerable amounts of money on a monthly basis.

Well, as the lending market has tightened up, it has become very difficult to obtain a debt consolidation refinance. Consolidation debt lead mortgage loans are simply not able to be handled the same way they were in the past. It just does not happen anymore that you can do a cash-out refinance and consolidate all of your borrowers’ credit cards. Home prices are falling and LTVs have been cut. So, most brokers have decided that debt consolidation leads no play a role in a good marketing strategy.

But, the important thing to remember here is that these leads still have a lot of great use. It is certainly true that these borrowers are looking to consolidate all of their debt. And, it’s also true that you probably won’t be able to do that. But, the real underlying need of these borrowers is simply to lower their total monthly payment. With the rates as low as they currently are, this is not very hard to do, even without consolidating any debt.

When used in this manner, you’ll see that most debt consolidation leads will actually just become straight refinance leads. When you are able to save them 200 dollars on their monthly housing payment, they will be just as excited as if you had been able to pay off all of their credit cards.

Related posts:

1. Is There Still a Need For a Debt Consolidation Lead?
2. Using Debt Settlement Leads
3. The Kind of Debt Leads You Should Buy
4. Reverse Mortgage Leads Are Your Entry to the Next Level of Origination
5. Exclusive Mortgage Leads Are Your Best Bet To Increase Your Business In The Upcoming Year

Mortgage Loan Officers don’t have nearly the options they once did to do cash out refinances and debt consolidation loans for their borrowers. Sub-prime lending is completely gone. Conventional financing through Fannie Mae and Freddie Mac may as well be gone because of the HVCC guidelines. So are homeowners’ only options consumer credit counseling and debt management?

Well, the answer is no. There is still plenty of opportunity to take advantage of debt consolidation leads. There are still refinance options available, and even more important to remember, a debt consolidation loan lead is a client that is trying anything to lower their overall monthly payment. So, even if cash out isn’t an option, they may still be potential clients if you can at least show them a substantial monthly savings on their mortgage.

But, keep in mind that even though everyone is decrying the death of the FHA program, it is actually still a very powerful refinance program and a great option for servicing debt consolidation leads. And, while most people only complain about the fact that cash out FHA refinances had the LTV limit cut by 10 percent, they forget that 85 percent LTV cash out refinance with a fixed rate in the 5 percent range is still a very powerful program. When you throw in the fact that can utilize this program to pay off a chapter 13 bankruptcies or even consumer credit counseling, it suddenly becomes a very powerful program indeed.

Another misconception is that a lot of loan officers will assume that a debt consolidation lead is no good if the borrower is requesting $20,000 but there is only $5,000 available for cash out. In a lot of these scenarios, that $5,000 is still a huge help to the borrower. That, coupled with a fixed rate at, say 5%, will almost always be enough to sway a borrower into the refinance. And, it’s very likely that you’re going to be putting them into a stronger financial position in the long run.

To make these leads even stronger, consider the fact that you are not alone. Most other loan officers are shying away from them as well. This means less competition for every qualified borrower that you sift out of the leads.

Overall, despite the lack of available programs, a debt consolidation refinance lead is still the best bang for your buck. They are cheap, readily available, less prone to competition, and are people who really do need your help.

Related posts:

1. Using Debt Settlement Leads
2. There Is Still Life Left In Debt Consolidation Leads
3. The Kind of Debt Leads You Should Buy
4. Reverse Mortgage Leads Are Your Entry to the Next Level of Origination
5. Exclusive Mortgage Leads Are Your Best Bet To Increase Your Business In The Upcoming Year