How to Choose a Mortgage Loan Modificaton Company (Part 5)

Be mindful of loan modification companies that tell you to stop paying your mortgage.

Ok, I’ve heard this one a lot and there is a lot of truth to banks only wanting to work with you if you are 3 months behind on your mortgage. Banks do this not to ruin your credit for not paying them back, but as a part of a system to prioritize which loans get modified first. Loans that have not been paid for more than three months recieve the most immediate attention.

Before I go any further, let me say up front I am in no way suggesting you not pay your mortgage but if you really need the banks attention, there is a way to do with out destroying your credit.

When you pay your mortgage, if you pay after the grace period (usually the 15th) but before the end of 30 days your banks will simply make an annotation on your account.

However, if you pay after 30 days the credit bureau will be notified. The key here is not to be more than 30 day’s late.

So if you really must get the banks attention, I’ve heard of many people paying between the 16th and the 29th day of the month for 3 months consecutively, and then contacting the bank about a loan modification.

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How to choose at Mortgage Loan Modification (Part 4)

Find loan modification companies that thoroughly explain the loan modification process.

There are several companies that will tell you just how unstoppable they are when it comes to loan modifications. However, it is vital that you understand exactly what you are paying for.

There are a couple of techniques out there that are usually lumped together and called a loan modification. However, these techniques are quite different and vary in difficulty. So make sure you’ve got someone experienced working for you.

The first technique is actually a loan modification (i.e. you or a company works with your lender to reduce the interest rate and monthly payment on your loan.

Another technique is called a “short pay.” That’s right, short pay not short sale. Under this strategy the bank actually reduces the loan amount, the payment, and the interest rate (Hint: This is the more difficult of the two).

For example, you have a $250K loan, a monthly payment of $2500 and an interest rate of 7%. You get laid off and can’t make your payments.

Some firms can actually get the bank to reduce your loan amount to lets say $150K, reduce the payments to $1200, and your interest rate to 4%. I’ve actually seen a similar scenario happen a couple of times.

These are the 2 main techniques I know of, but I’m sure there are others. The bottom line here is to please understand what you’re paying for.

I’ve heard several stories about people, who have written checks to someone for something, and they don’t know exactly what or why…and then of course, nothing happens. From my military days I’d say this is UNSAT or unsatisfactory.

Hopefully these 2 techniques will clear things up about what’s you’re actually supposed to be paying for.

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How to choose a Mortgage Loan Modification Company (Part 3)

Check loan modification companies with the Better Business Bureau.

Whenever you do business with a company that is offering a high ticket item it is always a good idea to check them out with the BBB.

However, this does not guarantee that the company you’re dealing with is going to “do the right thing.”

What most people don’t realize is that the BBB is a fee-based organization, no different than your local chamber of commerce. (I actually applied for a BBB sales position one time – that’s how I know)

While the BBB does expect its members to hold themselves to a higher standard and will punish members who don’t adhere to these standards by allowing consumers to post complaints, they are in no way the “business police.”

If you find a mortgage loan modification company that is listed with the BBB good on them. However, I wouldn’t expect to find this often simply because the industry is so new.

Your best bet is to talk to past clients of the company you’re looking at working with, contact your Secretary of State and/or your state department of Real Estate to ensure there are no complaints lodged against the people you’re looking at working with.

You could really go all out and do background checks online but if you feel you need to go this far your gut is probably telling you not to do business with the slickster you’re working with in the first place.

Trusting your gut, intuition, higher-self, god consciousness, holy spirit etc… is probably the best advice I can give.

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How to Choose a Loan Modification Company (Part 2)

Only work with loan modification companies that have reasonable fees and offer a money back guarantee.

Before getting a loan modification do your research, get recommendations and shop at least 3 vendors. Loan mods can range from $1000 to $6000.

The sweet spot is around $2000. While loan modifications can be quite time consuming and labor intensive, I would be very cautious of any organization that charges more than $2000.

Attorneys that are in the loan mod business often try to scare you into using their service and suggest that you should pay them more because they have a law degree and “have leverage” with the banks.

Nothing against attorneys but this is simply not always the case. There are several mom and pop shops usually, ex-loan officers that can do a good job. However, you want to make sure you thoroughly check out the organization you plan on working with.

Finally, the organization you choose should offer some form of money back guarantee.

Some organizations may require a nominal upfront deposit to cover labor cost, however, if you do not get satisfactory results the company should give most if not all of your money back.

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How to Choose a Loan Modification Company (Part 1)

While banks have had loss mitigation departments for years, the loan modification business is a fairly new animal. This industry has come out of the credit and housing crisis and is worth millions if not billions of dollars.

When done properly (i.e with a reputable company that doesn’t rip you off) loan mods can reduce your debt and provide a great deal of savings for you and your family. If you work with a dishonest company it could cost you thousands.

In my next several blogs I will provide tips on how to find a reputable loan modification company. In the meantime Listen to to what Mr Geithner had to say back in April 2009.

Visit msnbc.com for Breaking News, World News, and News about the Economy

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What’s a Pink Slip Party?

Pink Slips For Everyone

Pink Slips For Everyone

You know you’re in a Recession when Business Mixers become Pink Slip Parties….

What is this you might ask? We’ll let me enlighten you (since I attended one of the sad events yesterday)

Simply put, a Pink Slip Party/Mixer is an event where all the people who no longer have jobs get dressed up to meet every salesperson and MLMer in the city and no one buys or sales anything… Except for businesses that engaged in commerce with other businesses.

Lets face it gang, the World is changing. Your college degree and experience no longer guarantee you anything. The truth is they never did. This whole “get a good job” philosophy came about with the industrial revolution…which by the way has been over for almost 2 decades or in this country.

We need a new model or rather an old one. America is returning to it Entrepreneurial roots. Events like
Fast Path Phoenix are popping up in Phoenix, AZ and all across the country.

People are learning to take what they already know and use it to make a fortune. The woman that host this event, Loral Langemeier of Live Out Loud….Has a book and business model built around this sole concept. I think what she’s doing is awesome. It beats the heck out of Pink Slip Parties

Would love for you guys to check out her site or go to her event and leave me post about your experience. If you’re not up for going anywhere or just want some free stuff here are a couple of links

FREE STUFF

Free Webinars

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Insurance Pricing War

Ever since the credit crisis began, consumers have been cutting their spending.  Companies have recognized this trend and have been doing everything under the sun to get customers to do business with them.

Their most noted practice has been to offer cut rate deals.  I’m sure, if you’ve been to the mall in the last several months you’ve notice that there were a lot fewer people there than normal…and almost every department store was running a major sale.

We’ll ladies and gentlemen welcome to ECON 101.  When the supply of a good or service is high (i.e. you have a lot of  stuff on the selves) and demand is low (i.e. no one wants to buy your stuff because they don’t like it, don’t need it or just want to hold on to their money)  then the price of the good or service drops.

Insurance companies  in many respects are no different than shop owners in the mall.  They are always competing with each other for your premium dollars.

Since in many instances having insurance is a requirement of law, all insurance companies stand to gain some business.  However, these companies are very aware that citizens from around the globe are looking to cut cost inorder to gain some relief in these economic times.

Because of this, insurance companies have been looking for ways to cut cost as well as find ways to make greater returns out of the investment dollars you give them (also known as a premium).

These efforts among companies have created an Insurance pricing war.  If you don’t currently have insurance or if the price you’re currently paying is breaking your bank account now is the time to shop.

In the last month alone I can’t count the number of home and  auto insurance policies as well as business General Liability Insurance policies we’ve replaced because we were able cut our clients premium in half while providing similar or greater coverage.

If you’ve been with a insurance carrier for a while now is also a good time to see if he/she can offer you a special rate or discount. If not I’m sure there are several other companies that would welcome your business to including ours… www.barcafianancial.com

Happy Shopping!

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How do You Feel about Money?

All to often I am introduced to someone who has a great idea or a great business but the money they openly declare they deserve never seems to come their way.  Then as I spend quality time with these individuals  I get to see first hand exactly why this is.

Their situation is 100% of the time due to how they relate to money.  Often times these relationships are so terrible that if I were money, I would run away from them too.

For example,  I had a conversation with another financial planner who went on in classic” drunkalog” fashion about just how broke he was, and how he never has enough, and his business is draining him, and how much his clients annoy him, and how if he could just get enough big deal’s things would be OK.

How do you think this guy felt about money? Was it positive and inspiring or toxic and draining?  If you were money would you go running into his arms and beg to be placed in his bank account?  I certainly wouldn’t.

There are several universal laws that govern money and most of them a predicated upon how we think and feel.

According to Ernest Holmes, author of The Science of Mind, one’s Thoughts + Feelings = Demonstration.

What this means is that if you think about a certain thing and have strong emotions or feeling associated with it you will see a manifestation of it in your life.  The bottom line here is that we have all created the financial world that we currently live in.

The amount of money we currently see or don’t see in our life  is the sum total of the thoughts and feelings we have about it.  The good news here is that your financial situation is not a fixed state.  You can always create a new more empowering money situation by upgrading your thoughts and feeling.

Here are a few tips

1.  Be greatful for what you currently have. If you find your self complaining verbally or in your head… stop it and start listing 10 things you are grateful for.

Complaining only makes you believe in  lack and scarcity.  The reality its that we each live in a world of  abundance.  If you don’t think so its because you’ve convinced yourself otherwise. STOP IT…

2. Choose certainty over doubt or fear. You must truly accept that your natural state is abundance,  and that there is  nothing “wrong” or “right”  or “broken” about your situation.  It just is.

Certainty and fear are two side of the same coin. Certianty is belief the the magic of who you naturally brings good things to you, while fear is the belief that magic of who you are will bring about judgement and pain.  Either can be your reality…Choose

3. Live with Integrity. Integrity is not just doing the right thing when no one is looking.  It is about consciously creating the world you desire with your words, then executing a plan to manifest it in the world of form. I have suffered more failures in life due to lack of integrity than any other reason.

I would say I wanted one thing but never take any action to get it or…even worse I would take action, meet an obstacle then quit.  One must become relentless in fullfilling upon his/her word.

If this has been a problem for you in the past.  Start fresh today.  Plan your work then work your plan. If you fail start again, and again, and again… One cannot experience success unless he/she practices success.

4.  Choose a spiritual practice and perform it regularly. This may mean daily walks or meditation.  It may mean 15 minutes of reading a sacred text.  Whatever this is for you, choose your practice and perform it often.  This will help build discipline as well as serve to put your life into perspective while generating a peaceful more accepting mood.

5.  Exercise - This goes without saying ; A motionless body leaves a restless mind.  Your body needs to move a little faster than normal for at least 30 mins 3 times a week  in order to remain healthy.  Again…choose a plan and stick with it.  This is not about weight lose or feeling bad if you miss a day.

Working out is about increasing your energy and stamina so that you may feel good and more easily reach the goals you set for your life. If you tire easily, or if you body is filled with tension and the harmful chemicals created by it,  chances are you’re more likely to give up on your goals than someone who is energized and has trained his or her body to stay the course.  Energy is key here.  He who has the most energy ALWAYS wins.

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Thanks to all of You

Amid all the cookouts and beer drinking today; please take a moment of silence to remember the  men and women who have served and who are still in harms way today.

Regardless of how you feel about the war these men and women have put themselves in harms way in the name of our country time and time again.

Lets not forget to  honor them today.

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Financial Planning is more than Just Budgeting

It is quite unfortunate but I’m not sure the majority of people understand the purpose of financial planning. 

Today, I spoke with a lady who nearing retirement with very little saved said;  “I don’t need to pay for a financial plan.  I can manage my budget just fine.”  However, if you were a fly on the wall in our conversation, you could have easily seen that she would have greatly benifited from the services a planner years ago.

This really breaks my heart when I see boomers (many of our moms and dads) preparing to retire without a dime or a plan to get one.

Now don’t get me wrong.  I am the biggest advocate of getting as much free advice as you can and that’s why I write this blog and will turn you my  readers onto to as much solid content as I can. 

I believe that we are all responsible for our own fianancial destiny and this resposibility should not be left blindly in the hands of a stranger.  However,  I’m also big beliver in paying the experts to do the grunt work when it is require.  

This provides more time for you to do what you’re good at (living your life, refining your vision, and leading your team). 

When it comes to financial planning, I recommend following  2 rules. 

1.  Do what gets you the result you want in the time you specify. 

2.  Know exactly what you want in order to be able to lead a team that will help you fullfill rule #1.

Often times people are not clear about rule 1 or 2.  This is where the planner comes in.  The job for the financial planner is help you define what you want, (e.g. retire by 35,  produce a $20K per month passive income, etc) then  point out and guide you around the obstacles or risk,  that may keep you from getting what you want (tax consequences, death, unfortunate event).

The job of the planner is much more than tossing you into a few mutual funds telling you to balance your checkbook, and making sure you have life insurance.  While these things are important, it is my opinion that consumers are no longer willing to accept sheer commodities peddlers.  They want and deserve results that are worth of them and the planner that produced them. 

A good  financial planner will really know his/her clients, ecourage them to set BHAGs (Big Harry Adacious Goals) and be committed to ensuring they are realized.

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