Recasting – Chris Coulter

In my first 7 minute I talked about the word recasting. It’s time for me to mention it again because since that March date I’ve closed 43 loans and I have recasted 12 of them. Recasting is a reduction to your monthly payment after a large principal reduction of 10% or more. It is useful when a client wants to buy a new house before selling their old one. My brother Jason lives in this small town in North New Jersey. He is 43 and he and his wife Julie take a train into Manhattan everyday to work. For years they have been trying to find an affordable house along the train line in this certain community in New Jersey. Riding in the other day he saw it…..a for sale sign. He called me, what do I do? I said you make an offer, lock down the house and we sell yours later. He had been in his current home for 12 years and done some improvements and built up some equity. He had enough saved for a 5% down payment that wouldn’t stretch him too much and when he sold his current home he was able to put 175k down on the new loan and the payment dropped by 1k per month. Mission accomplished. New house, lower payment than when he started. I’m a good referral for that friend of yours that needs to buy one house before selling the other.

5 Responses to Recasting – Chris Coulter
  1. Wendy Kinney
    August 16, 2018 | 4:25 pm

    Missing:

    1: Purple card – why me.
    You may have meant “since that March date I’ve closed 43 loans and I have recasted 12 of them.” to be the Purple card. The Purple card gives an example of what makes you good at what you do.

    2: Blue card – 15 seconds – new information. An explanation, in three sentences, of what recasting is/does.

    3: Green card – WHO + HOW
    WHO = that friend
    >>>the word “that” stifles referrals. “A friend” would be better, but it’s weak because it is generic. Specific is always more profitable.

    HOW = that needs to buy one house before selling the other
    >>>need is not a behaviour. What would we see that would let us know a friend needed to sell before buying?

    4: Golden Card – what result does my friend want?
    (My suggestion: “he wants to be sure he can cover his son’s first quarter tuition at college.” now give me another one! Give me five!)

    5: Kindling Question – how can I start a conversation with my friend about this.
    (Reminder: this question will not ever be about the mortgage. Ever.)

  2. Clay Jeffreys
    November 5, 2018 | 4:55 pm

    I think you could restructure the beginning of your IM to allow more room for the green/gold/plat combo at the end. Maybe change the start to the following:

    Good morning, I’m Chris Coulter a mortgage loan officer. Recasting will reduce the monthly payment after making a principal reduction of 10% or more. It is useful when buying a new home prior to selling the old home, and a quarter of my clients used this strategy in 2018.

    By going this route, you focus the team specifically on the term (recasting) and get rid of the extra information about what you’ve done in the past saving that time for the G/G/P card combo. You are also able to highlight how many of your clients do this. It saved 7 seconds.

    The blue card is the new information. The story you tell in the RED card gives the minutia on how recasting works in the loan process.

    GOLD CARD – Jason wants to make a competitive offer to buy his new home without selling his current home.

    Kindling Question – Ask Jason if like likes to have his cake AND eat it too.

    The RED card/story explains how Jason can do both (make the offer without selling his home and still get the lower monthly payment after closing by recasting).

  3. Jason Conn
    November 7, 2018 | 11:04 am

    I like this for a Green/Gold/Platinum combination:
    Your brother Bill just received a job offer out of town. His company didn’t offer a relocation package and he starts his new job in a month. He mentions that his family will stay in an extended stay hotel with their 3 dogs and 2 cats, until their home sells. Ask him if his new company offers a strong mental health package and let him know there are better options.

  4. Chris Coulter
    November 7, 2018 | 11:13 pm

    Good morning, I’m Chris Coulter a mortgage loan officer. Recasting will reduce the monthly payment after making a principal reduction of 10% or more. It is useful when buying a new home prior to selling the old home, and a quarter of my clients used this strategy in 2018. My brother Jason lives in this small town in North New Jersey. He is 43 and he and his wife Julie take a train into Manhattan everyday to work. For years they have been trying to find an affordable house along the train line in this certain community in New Jersey. Riding in the other day he saw it…..a for sale sign. He called me, what do I do? I said you make an offer, lock down the house and we sell yours later. He had been in his current home for 12 years and done some improvements and built up some equity. He had enough saved for a 5% down payment that wouldn’t stretch him too much and when he sold his current home he was able to put 175k down on the new loan and the payment dropped by 1k per month. Mission accomplished. New house, lower payment than when he started. IF you have a friend who is unusually shortand frustrated maybe their family is currently livng with their parents temporarily ask them if they would like to get out of there sooner than later.

  5. Rodney Shaffer
    November 12, 2018 | 3:42 pm

    Wendy requested 5 golden cards, how about these:

    He wants to cut his commute time so he can attend more of his kids’ soccer games.

    He wants to get his kids in a better high school so they will get accepted to Georgia Tech.

    He wants a new house with space for a home theater room, so he can watch Atlanta United games in style with his buddies.

    He wants a new kitchen so he can host the family holiday meal. (Yes, he is NUTS!)

    He wants a bigger yard so he can kick a soccer ball around with his daughter.

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