Mortgage Blog

Everyone knows the importance of the stop loss in
the investment.

In 1999-2000 dotcom-frenzy era, it was so easy
to make the money on the market, I day-traded
AMAZ(purchased at $280, sold at $400), CMGI,
BYND, PRTL, etc. Though I made lots of money at
the beginning, since I did not take "stop loss",
I lost almost all the money on the stock market.
And I am glad that I did not have much money then.

And today, I have one investor backed out her
purchase. Most likely she will lose the deposit,
but since the property she purchased does not
have warranty, the bad quality of the work
before the builder's bankrupcy, and not that
good neighborhood etc made her deciced to take
a stop loss on this purchase(on the other
hand, she got another good deal).

For my business, I don't take some application for any
loans. Especially those who cancelled my loan
for no reasons(or a little bit better rate).
Last year, I had only one loan cancellation.
And the boy told me that he would do the refinance
with me in the future. And instead of "willingly"
taking him back, and I took the "stop loss" and 
told him that I would not do the loan for me any more.
For me, the market fuctuation is normal, and
a little bit better rate is not an excuse to
cancel the loan, especially after the signing.