TSVArticle08-2011
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The document discusses strategic defaulting, where homeowners stop paying their mortgages even though they can afford to pay. It notes that some homeowners view it as a good financial decision to save thousands each month by not paying. However, it says strategic defaults consider only finances and will prolong the real estate market downturn for years. The document also profiles Charles Eapen of the C12 Group, which helps Christian business owners excel and see their business as a mission field to influence employees, customers and the community.
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TSVArticle08-2011
- 1. AUGUST, 2011 / TRI-STATE VO ICE 1 9 REALESTATE BY SAL POLIANDRO Have you ever heard the term strategic defaulter? A strategic defaulter is someone who has a mort- gage and due to current circumstances or the danger of foreclosure has decid- ed that it is in their best interest to stop paying their mortgage. Financially, the case can be compelling. Let’s say that you have a $4,000 a month mortgage payment (Trust me there are many folks in this area of the country who do). A strategic defaulter decides that even though they could make their mortgage payment and squeak by, it would be better to not pay the mort- gage and save the $4,000 a month. Even if they could stay in their home for one additional year, they would be able to save almost $50,000. If they can stretch it out two years, they could save almost $100,000. The irony is unbelievable. In the past, folks would rent a small apartment, scrimp and save to get enough for a down payment on a home, and then buy their new home. Today, folks who have taken on mortgage payments are deciding not to pay, so they can save after they have purchased a home. We can’t speak about this subject without looking at the influence of the United States Government. Every time there is a crisis or something that needs to be fixed, our government seems to get involved: Unemployment Benefits Normally each state would provide up to six months assistance for someone who has lost their job. In an effort to help people, the federal government passes legislation that extends un- employment benefits for almost years! I’ve heard stories of employers who were trying to hire people, but the prospective employees decided to continue collecting unemployment instead of working. The rationale: even though the job would pay more than unemployment, once they factored in the cost of childcare it was cheaper to stay home with the kids and keep collecting. Foreclosure Crisis There have been huge delays in the so called foreclosure crisis. Fear spread that millions of Americans would be kicked out of their homes. Stories of robosigners brought the foreclosure process to a screeching halt. While the government is trying to figure out what to do, there is a back log of properties that are not getting foreclosed on. This delay is a huge encouragement to the strategic defaulter. Raising the Debt Ceiling Think about this… Do you really need another credit card? If you can’t manage the debt you already have, is giving yourself permission to apply for another credit card really the right thing to do? We need to be careful of the questions we ask and to whom we ask them. If I ask my 10 year old what we should have for dinner, he will al- ways say candy and ice cream. Every- body knows that candy and ice cream is not dinner. A government that can’t control spending should not ask itself if it is ok to borrow more money. Remember, no decisions are made in a vacuum. When things are hard, it is easy to rationalize shortcuts. Times are tough for everyone. There are quite a few people who have lost hope— hope in the economy, hope in the government, hope in their marriages, and hope in their homes. The strategic defaulter may be making what they think is a good financial decision, but there are more to decisions than just finances. Strategic defaults will drag the current real estate market out another three to five years. Unless the foreclosure process is accelerated, this will be a topic that we will continue to hear about. Get Educated. Get Empowered. For more information on this or any other topic, call Sal Poliandro, Broker Associate, Realtor, Marketing Advisor, Short Sale Specialist, CDPE, Certified Distressed Property Expert, SFR, Short Sale & Foreclosure Resource, ePRO, SRES. Phone: (201) 259-2187. Web site: www.SalAndDawn.com or www.short- saleguy.org. Follow me on Twitter: @salanddawn. Sal can be reached by snail mail at RE/MAX Properties 73 East Allendale Road Saddle River, NJ 07458. The Strategic Defaulter Next Door The C12 Group: Empowering Business Owners and CEOs To Excel, Fulfill the Great Commission Editor’s note: The following is a Q and A with Charles Eapen, the president and CEO of the C12 Group in Northern New Jersey. Q: What is the mission of the C12 Group? A: The C12 Group is America’s largest Christian CEO equipping organization, helping Christian business owners/CEOs to work “on” their business instead of just “in” it. We’ve been operating as a fee-for- service B2B membership organization (vs. a non-profit), just like our member compa- nies, for almost 20 years. C12 comes alongside the overcommitted Christian business owner/CEO to execute operational excellence in their business from a biblical worldview. We gather togeth- er monthly in groups of 10-15 to address the challenges each member faces while speak- ing the “truth in love” about our businesses. Each member walks away with actionable steps that are based on about 200 years of combined sales, finance, and operations ex- pertise filtered through a biblical worldview. Frankly speaking, expertise of this caliber is unmatched by any consultancy or coaching organization I’ve seen or worked with in my 20 years of business. Q: How exactly does The C12 Group help the Christian Business Owner/CEO? A: We all have blind spots and we all fall victim to old habits that we regress into, especially in a recessionary economy like this. Regardless of the economy, however, God never called His stewards to a reactive posture; in fact, He expects proactive initia- tion and, more importantly, results! Having a source of counsel outside of your circu stances helps you to see things from a perspective that you and your key manage- ment would not see. In addition, each mem- ber is genuinely concerned about one anoth- er with no financial interest so, unlike a paid consultant, CPA or attorney, C12 mem- bers truly represent a 100% unbiased board of directors for the business owner/CEO. C12 members develop a trusting relation- ship with one another and an environment of healthy accountability is fostered. Mem- bers also gain valuable insight from a deep dive (we call it the Core Business Presenta- tion or CBP) into their corporation’s opera- tions, finances, organizational develop- ment plans and, if they exist, ministry plans. This deep dive creates a mechanism where the other C12 members can provide analysis, healthy critique and encourage- ment to engage and execute on new ideas with perseverance. Many members cite the CBP as one of the greatest values they receive as C12 members. Q: How do Christian business owners become C12 members? A: C12 membership is by invitation so we can engage with those individuals who real- ly desire growth and change both personal- ly and professionally. Further, because of the requirement to attend the full day meet- ing, C12 membership is best suited for busi- nesses that have at least ten employees. Af- ter an initial dialogue, a couple of surveys are collected to gather information on the prospective member and, based on the feedback, they may be invited to attend a full day C12 meeting as a complimentary guest. After the monthly meeting in Bergen coun- ty, The C12 Group assesses the prospective member’s application and makes a deci- sion. A registration fee is collected in addi- tion to a monthly membership fee; the monthly fees are high enough that it dis- courages casual participation. Based on the feedback of the members to date, the value they receive is more than offset by the in- vestment of time and capital; the tangible transformation to the business and to the individual member is priceless. Q: Why did you get involved with The C12 Group? A: I’ve always loved business – starting it, running it, selling it. I’ve also enjoyed the people, the processes, and the product/ser- vice offerings. But, like many, I thought that the purpose of having a business was to run it profitably and give a portion of the profits away to ministries. While there is nothing wrong with this approach, it falls short of the personal accountability each business owner/CEO has to The Great Commission. God has already given them a mission field and it includes: the employees, the suppliers, the customers, the job appli- cants, the people would see our advertising, etc. In this unique mission field, no minis- ter can be as effective as a particular busi- ness owner/CEO. Unfortunately, many do not see this ripe field for harvest. Every busi- ness owner should consider why this would not be their primary mission field. I struggled with this paradigm but I really see this is part and parcel of God’s greater plan to reach His world through the marketplace and He can do it through will- ing owners/CEOs who will embrace this vision. Being a part of an organization that shares my love for business and love for His kingdom expansion is what energizes me! To contact Charles Eapen and the C12 Group, visit www.C12NorthNJ.com, or call (201) 565- 8200. E-mail: charles.eapen@c12group.com. The strategic defaulter may be making what they think is a good financial decision, but there are more to decisions than just finances. Strategic defaults will drag the current real estate market out another three to five years. Charles Eapen In this unique mission field, no minister can be as effective as a particular business owner/CEO. Unfortunately, many do not see this ripe field for harvest.