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The Extreme Need To Fire Some Clients; Ignore Sunk Cost

A few weeks ago I heard from a borrower I had not spoken to for over 8 years, and we last closed her loan in 2005. I remember her well nonetheless b/c she was so extraordinarily difficult to please, and we tried everything. If we had given her $1 million dollars in cash, she would have been mad b/c we didn’t stack the bills properly.

I tell this story b/c she is the perfect example of a client we should have fired. We kept her on board b/c we got started with her loan before we knew how difficult she was, and we didn’t want to eat the labor and appraisal costs. But, we most definitely should have.

Further, we just desperately wanted to help her. She was at risk of losing her home and she was having severe financial difficulties, and our loan saved her. It was the only loan she could have possibly obtained, but she refuses to accept or believe that.

And she has been fighting everyone (mostly the lenders and servicers) ever since.

Most industry vets know this well, but many people new to a service industry fail to realize how important it is to let some clients go no matter how much sunk cost they might have invested. Some people are simply malcontents who cannot be pleased. And no matter how much money you might make helping them, it is never worth it in the end.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646