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.

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.