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.

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.

Hello All…

Welcome back. I think you guys will really appreciate the information.