VA Mortgage Loan Scams
by: Cachet Gomes
VA mortgage loans have proved to be very beneficial for veterans and a
veteran can now enjoy a dream home of his own. The main advantage of VA
mortgage loans is you don’t have to make any down payment. VA mortgage
loan scams are on the rise and consumers are required to keep track of
the proceedings while opting for a veteran mortgage loan.
A VA mortgage loan is guaranteed by Veterans Administration. These loans
are extended only to the veterans. The surviving spouses of veterans are
also entitled to receive the loan guaranteed by the VA. This loan allows
veterans to own a home of their own by making zero down payments.
In order to avail the veteran mortgage loan, you need to qualify and the
eligibility criteria may vary from one person to another. The difference
may be due to duration for which you were in service or type of military
service you were engaged in. You can avail a VA mortgage loan of up to
USD$417,000. In few areas the amount can be higher. If you are a
potential home buyer, you can avail a 100% mortgage loan without shelling
out private mortgage insurance. In case you are a homeowner already, you
can avail 90% for refinancing.
VA mortgage loans are issued by qualified lenders and banks. However,
recently several instances of VA mortgage loan scams have been reported.
Scenario 1
A real estate broker was sent to prison for victimizing innocent people
who had availed VA mortgage loans. The incident occurred in Atlanta when
the real estate broker misappropriated approximately USD$900,000. She
operated in the Atlanta area and arranged for at least 20 real estate
transactions offered by Veteran Administration's Lender Vendor Program.
She operated under 3 different names. She had made false documents, bank
records, wage statements and submitted to the VA so that the VA mortgage
loans get approved. Her main intention was to help veterans get a loan
even if they didn’t qualify for one.
Scenario 2
In another instance involving VA mortgage loans, an officer of the VA
Regional Loan Office was found guilty of carrying out fraudulent
activities. The main work of the officer was to hire contractors for the
repair work and maintenance of residential property, the VA intended to
buy if the veterans fell behind on payments. These loans were only
partially guaranteed by the VA. The officer was imprisoned for a period
of 63 months. He was arrested on the charges that he had accepted bribe
from contractors and hired their services for the maintenance work even
though the quality of work they would be doing wasn't good. The
contractors were paid as much as USD$4 million over a period of 5 years.
In return, the officer received cash payments of more than USD$100,000.
Since the incidence of VA mortgage loan scams is on the rise, every
possible effort is being made to minimize misappropriation of funds.
About The Author
Cachet Gomes is a contributing Financial Writer of Mortgagecases. With
her knowledge on http://www.mortgagecases.com/mortgage
[http://www.mortgagecases.com/mortgage] cases, laws and sub prime
mortgage crisis related issues, she provides information on mortgage
calculators, consumer rights, how to fight out cases and avoid
http://www.mortgagecases.com/frauds/avoid-valoan-scams.html
[http://www.mortgagecases.com/frauds/avoid-valoan-scams.html] VA Mortgage
Loan Scams.
by: Cachet Gomes
VA mortgage loans have proved to be very beneficial for veterans and a
veteran can now enjoy a dream home of his own. The main advantage of VA
mortgage loans is you don’t have to make any down payment. VA mortgage
loan scams are on the rise and consumers are required to keep track of
the proceedings while opting for a veteran mortgage loan.
A VA mortgage loan is guaranteed by Veterans Administration. These loans
are extended only to the veterans. The surviving spouses of veterans are
also entitled to receive the loan guaranteed by the VA. This loan allows
veterans to own a home of their own by making zero down payments.
In order to avail the veteran mortgage loan, you need to qualify and the
eligibility criteria may vary from one person to another. The difference
may be due to duration for which you were in service or type of military
service you were engaged in. You can avail a VA mortgage loan of up to
USD$417,000. In few areas the amount can be higher. If you are a
potential home buyer, you can avail a 100% mortgage loan without shelling
out private mortgage insurance. In case you are a homeowner already, you
can avail 90% for refinancing.
VA mortgage loans are issued by qualified lenders and banks. However,
recently several instances of VA mortgage loan scams have been reported.
Scenario 1
A real estate broker was sent to prison for victimizing innocent people
who had availed VA mortgage loans. The incident occurred in Atlanta when
the real estate broker misappropriated approximately USD$900,000. She
operated in the Atlanta area and arranged for at least 20 real estate
transactions offered by Veteran Administration's Lender Vendor Program.
She operated under 3 different names. She had made false documents, bank
records, wage statements and submitted to the VA so that the VA mortgage
loans get approved. Her main intention was to help veterans get a loan
even if they didn’t qualify for one.
Scenario 2
In another instance involving VA mortgage loans, an officer of the VA
Regional Loan Office was found guilty of carrying out fraudulent
activities. The main work of the officer was to hire contractors for the
repair work and maintenance of residential property, the VA intended to
buy if the veterans fell behind on payments. These loans were only
partially guaranteed by the VA. The officer was imprisoned for a period
of 63 months. He was arrested on the charges that he had accepted bribe
from contractors and hired their services for the maintenance work even
though the quality of work they would be doing wasn't good. The
contractors were paid as much as USD$4 million over a period of 5 years.
In return, the officer received cash payments of more than USD$100,000.
Since the incidence of VA mortgage loan scams is on the rise, every
possible effort is being made to minimize misappropriation of funds.
About The Author
Cachet Gomes is a contributing Financial Writer of Mortgagecases. With
her knowledge on http://www.mortgagecases.com/mortgage cases, laws and sub prime
mortgage crisis related issues, she provides information on mortgage
calculators, consumer rights, how to fight out cases and avoid
http://www.mortgagecases.com/frauds/avoid-valoan-scams.html VA Mortgage
Loan Scams.
Tuesday, June 30, 2009
Monday, June 29, 2009
The Top Three Ways to Raise Your Credit Score Without Losing Your Sanity
The Top Three Ways to Raise Your Credit Score Without Losing Your Sanity
by: Charrissa Cawley
A critical part of your success as a real estate investor is your ability
to obtain the financing you need to fund your real estate activities, so
it’s imperative that your credit score be as high as possible. Regardless
of what your score is right now, it can almost always be higher. Here are
three powerful ways to quickly boost your credit score and increase the
likelihood that you’ll always be able to get your loan applications
approved, without losing your sanity:
Pay Your Bills on time – The most important thing you can do to increase
your credit score is to pay your bills on-time. Your FICO score is an
up-to-date snapshot of your creditworthiness, so it changes almost daily.
Today’s late payment may not seem like a big deal, but it can have a
dramatic impact on your ability to get loan approvals when you need them.
By making it a practice to always pay your bills on-time, you are setting
yourself up for continued financial success. Good credit isn’t an
accident that just happens. It takes work, effort, and attention to
detail. Make the commitment TODAY that from now on you will ALWAYS pay
your bills on or before their due-date. Nobody’s perfect, but by putting
on-time bill payment at the very top of your financial agenda you will
steadily see your credit score increase. A few points can save – or cost
– you a small fortune in late fees and missed investing opportunities.
Spice Up Your Credit Life – It’s been said that variety is the spice of
life, and the same is true of your credit mix. While it’s great that you
have a credit card or two in your wallet, it’s more important that you
have – and utilize – a variety of different kinds of credit.
Most of us have at least one mortgage loan, but it’s also important that
you utilize installment and revolving credit accounts. An example of an
installment loan would be your auto loan. You have a fixed number of
payments over a specific period of time in order to pay off that loan.
With revolving credit, the balance can go up or down each month depending
on how it is utilized. For instance, a credit card is a prime example of
revolving credit. One month you might not have a balance at all; the
following month could see several thousand dollars in new charges. Mix
things up and make sure you use different types of credit regularly for
best results.
Find the Credit Accounts You Like – and Keep Them – Some people like to
play musical chairs with their credit accounts. We all know someone like
this; you may even be one of them. While shopping, they see a sudden
opportunity to save 10% off their purchases simply for applying for a
credit account.
Unless you have every intention of opening and using a credit account,
save your time and your credit score. When you open credit accounts that
you don’t use – only to close them a month or two later – your credit
score will actually drop. So settle on the credit accounts you’re going
to have – and then keep them.
This doesn’t mean you should never take advantage of that great zero
percent financing offer you got in the mail. What it does mean, however,
is that if you’re going to take advantage of an offer like this, utilize
it – and then keep the card for the long haul. The longer you’ve had a
credit account, the greater the impact on your credit score. Rather than
close a credit card account with a seven year track record of on-time
payments in order to save a few dollars in interest charges, keep that
account open. It’s doing you a lot of good.
These may seem like simple steps, but they can have a profound impact on
your credit score – and the size of your investing portfolio. Put this
simple three step process into effect today and watch your real estate
investing career grow by leaps and bounds!
About The Author
Charrissa Cawley offers accurate and proven strategies to investors of
all different levels and is the founder of http://www.reiconferences.com, one of the fastest growing real estate
investment training organizations in the US in addition to http://www.rewexclub.com , the top rated Real
Estate Investor Community on the web today.
by: Charrissa Cawley
A critical part of your success as a real estate investor is your ability
to obtain the financing you need to fund your real estate activities, so
it’s imperative that your credit score be as high as possible. Regardless
of what your score is right now, it can almost always be higher. Here are
three powerful ways to quickly boost your credit score and increase the
likelihood that you’ll always be able to get your loan applications
approved, without losing your sanity:
Pay Your Bills on time – The most important thing you can do to increase
your credit score is to pay your bills on-time. Your FICO score is an
up-to-date snapshot of your creditworthiness, so it changes almost daily.
Today’s late payment may not seem like a big deal, but it can have a
dramatic impact on your ability to get loan approvals when you need them.
By making it a practice to always pay your bills on-time, you are setting
yourself up for continued financial success. Good credit isn’t an
accident that just happens. It takes work, effort, and attention to
detail. Make the commitment TODAY that from now on you will ALWAYS pay
your bills on or before their due-date. Nobody’s perfect, but by putting
on-time bill payment at the very top of your financial agenda you will
steadily see your credit score increase. A few points can save – or cost
– you a small fortune in late fees and missed investing opportunities.
Spice Up Your Credit Life – It’s been said that variety is the spice of
life, and the same is true of your credit mix. While it’s great that you
have a credit card or two in your wallet, it’s more important that you
have – and utilize – a variety of different kinds of credit.
Most of us have at least one mortgage loan, but it’s also important that
you utilize installment and revolving credit accounts. An example of an
installment loan would be your auto loan. You have a fixed number of
payments over a specific period of time in order to pay off that loan.
With revolving credit, the balance can go up or down each month depending
on how it is utilized. For instance, a credit card is a prime example of
revolving credit. One month you might not have a balance at all; the
following month could see several thousand dollars in new charges. Mix
things up and make sure you use different types of credit regularly for
best results.
Find the Credit Accounts You Like – and Keep Them – Some people like to
play musical chairs with their credit accounts. We all know someone like
this; you may even be one of them. While shopping, they see a sudden
opportunity to save 10% off their purchases simply for applying for a
credit account.
Unless you have every intention of opening and using a credit account,
save your time and your credit score. When you open credit accounts that
you don’t use – only to close them a month or two later – your credit
score will actually drop. So settle on the credit accounts you’re going
to have – and then keep them.
This doesn’t mean you should never take advantage of that great zero
percent financing offer you got in the mail. What it does mean, however,
is that if you’re going to take advantage of an offer like this, utilize
it – and then keep the card for the long haul. The longer you’ve had a
credit account, the greater the impact on your credit score. Rather than
close a credit card account with a seven year track record of on-time
payments in order to save a few dollars in interest charges, keep that
account open. It’s doing you a lot of good.
These may seem like simple steps, but they can have a profound impact on
your credit score – and the size of your investing portfolio. Put this
simple three step process into effect today and watch your real estate
investing career grow by leaps and bounds!
About The Author
Charrissa Cawley offers accurate and proven strategies to investors of
all different levels and is the founder of http://www.reiconferences.com, one of the fastest growing real estate
investment training organizations in the US in addition to http://www.rewexclub.com , the top rated Real
Estate Investor Community on the web today.
Sunday, June 28, 2009
Tapping Home Equity to Pay Debts is Foolhardy Move Right Now
Tapping Home Equity to Pay Debts is Foolhardy Move Right Now
by: Greg Pesetsky
Over the years, you have been a faithfully paying your home mortgage –
and all the while building up valuable equity in your most prized
possession, your home. This equity often provides a quick line of credit
that many homeowners are encouraged to tap into to pay off their existing
debts (or even to pay for things like education, weddings, vacations,
home improvements, and so on). However, tapping home equity to pay debts
is a foolhardy move that can put your home at risk for foreclosure and
leave you in even worse financial straits than you are currently in.
Home Equity Loan Myths
Many ill-advised homeowners are told that they should open up a home
equity line of credit due to the current state of the economy. In fact, a
recent article on SayEducate.com argues that because of the recent
economic downturn that those Americans who have built up equity and are
facing job loss should open up an equity line immediately! Worse advice
was never given. If you have no job, you will have no money to pay for
the equity loan. Although rates are at all time lows, those who are
looking to be out of work would be jumping from the frying pan into the
fire to take out a home equity loan or line of credit that they might not
be able to repay.
Home Equity Loan Scams
Even for those homeowners who feel secure in their job but are in need of
cash fast, there are hidden hazards involved in tapping into your home’s
equity. Home equity loans typically are written with variable rates of
interest and/or teaser rates that entice borrowers to borrow, borrow, and
borrow. These variable interest rate home equity loans often feature
initially low costs but culminate with a huge balloon payment at the end
of the loan’s term. And a variable rate of interest is just that –
variable. It varies based on current market conditions and adjusts at
different intervals of time to a new rate, giving you an unpredictable
payment that is hard to budget for or may be more than your income will
allow you to make. This puts your biggest and most valuable asset, your
home, at risk, if you should fail to make your required payments,
including these huge balloon type payments, your home can be foreclosed
upon, you could end up in bankruptcy, and your financial life would be a
living nightmare. Make sure you don’t fall victim to predatory lenders
who are looking to fleece homeowners with home equity loans that they
cannot afford. Protect yourself from home equity loan threats by
reviewing the guidelines that follow.
Home Equity Loan Guidelines
• Never, ever, under any circumstances, take out a home equity loan that
is based on the value of your home instead of on your ability to repay
the money being loaned to you or the credit extended on your behalf.
• When considering a home equity loan, look at the total package you’re
being offered. This means looking at more than an initial offer of a low
monthly payment, or no payments for a period of time. Read all the fine
print. Can you really afford a balloon payment of several thousand
dollars five years from now, seven years from now, or ever?
• Never consider a home equity loan that is offered via an unsolicited
telephone call. The same holds true for mailers that you receive from
lending companies who want to solve all of your financial problems with a
home equity loan.
• Ignore high pressure sales tactics used by most home equity lenders,
claiming that their offer is good only for a limited time – sometimes
only hours. This technique is laughable – the company will offer you the
same deal a year from now.
• Consider credit counseling to help you get your financial life back on
track instead of absorbing the risk of losing your home to foreclosure.
• Avoid loans that might be billed as interest only, partially amortizing
or non-amortizing. This is legal jargon that simply means that you’ll
still owe money after all of your payments have been made, usually a
balloon payment. Fail to pay it – lose your home.
• Never sign a deed of trust of quitclaim deed with a contractor. This is
a tactic used among many contractors/lenders that will legally allow them
to trick you out of your home. The only contract you should sign with
someone doing repairs or renovations is a contract for home improvement
services.
• If you have just signed a home equity loan, the federal government
gives you three business days to back out of a loan contract when your
home is used as security for the loan (legally known as the right of
rescission). Cancellation of the loan must be done within three days in
writing.
About The Author
Greg Pesetsky has worked in Debt Settlement for 8 years and is considered
an expert in the industry by his peers. Greg is IAPDA Certified and has a
good standing in the industry. He owns and manages Practical Debt Relief.
Visit the author's web site at: http://www.practicaldebtrelief.com
by: Greg Pesetsky
Over the years, you have been a faithfully paying your home mortgage –
and all the while building up valuable equity in your most prized
possession, your home. This equity often provides a quick line of credit
that many homeowners are encouraged to tap into to pay off their existing
debts (or even to pay for things like education, weddings, vacations,
home improvements, and so on). However, tapping home equity to pay debts
is a foolhardy move that can put your home at risk for foreclosure and
leave you in even worse financial straits than you are currently in.
Home Equity Loan Myths
Many ill-advised homeowners are told that they should open up a home
equity line of credit due to the current state of the economy. In fact, a
recent article on SayEducate.com argues that because of the recent
economic downturn that those Americans who have built up equity and are
facing job loss should open up an equity line immediately! Worse advice
was never given. If you have no job, you will have no money to pay for
the equity loan. Although rates are at all time lows, those who are
looking to be out of work would be jumping from the frying pan into the
fire to take out a home equity loan or line of credit that they might not
be able to repay.
Home Equity Loan Scams
Even for those homeowners who feel secure in their job but are in need of
cash fast, there are hidden hazards involved in tapping into your home’s
equity. Home equity loans typically are written with variable rates of
interest and/or teaser rates that entice borrowers to borrow, borrow, and
borrow. These variable interest rate home equity loans often feature
initially low costs but culminate with a huge balloon payment at the end
of the loan’s term. And a variable rate of interest is just that –
variable. It varies based on current market conditions and adjusts at
different intervals of time to a new rate, giving you an unpredictable
payment that is hard to budget for or may be more than your income will
allow you to make. This puts your biggest and most valuable asset, your
home, at risk, if you should fail to make your required payments,
including these huge balloon type payments, your home can be foreclosed
upon, you could end up in bankruptcy, and your financial life would be a
living nightmare. Make sure you don’t fall victim to predatory lenders
who are looking to fleece homeowners with home equity loans that they
cannot afford. Protect yourself from home equity loan threats by
reviewing the guidelines that follow.
Home Equity Loan Guidelines
• Never, ever, under any circumstances, take out a home equity loan that
is based on the value of your home instead of on your ability to repay
the money being loaned to you or the credit extended on your behalf.
• When considering a home equity loan, look at the total package you’re
being offered. This means looking at more than an initial offer of a low
monthly payment, or no payments for a period of time. Read all the fine
print. Can you really afford a balloon payment of several thousand
dollars five years from now, seven years from now, or ever?
• Never consider a home equity loan that is offered via an unsolicited
telephone call. The same holds true for mailers that you receive from
lending companies who want to solve all of your financial problems with a
home equity loan.
• Ignore high pressure sales tactics used by most home equity lenders,
claiming that their offer is good only for a limited time – sometimes
only hours. This technique is laughable – the company will offer you the
same deal a year from now.
• Consider credit counseling to help you get your financial life back on
track instead of absorbing the risk of losing your home to foreclosure.
• Avoid loans that might be billed as interest only, partially amortizing
or non-amortizing. This is legal jargon that simply means that you’ll
still owe money after all of your payments have been made, usually a
balloon payment. Fail to pay it – lose your home.
• Never sign a deed of trust of quitclaim deed with a contractor. This is
a tactic used among many contractors/lenders that will legally allow them
to trick you out of your home. The only contract you should sign with
someone doing repairs or renovations is a contract for home improvement
services.
• If you have just signed a home equity loan, the federal government
gives you three business days to back out of a loan contract when your
home is used as security for the loan (legally known as the right of
rescission). Cancellation of the loan must be done within three days in
writing.
About The Author
Greg Pesetsky has worked in Debt Settlement for 8 years and is considered
an expert in the industry by his peers. Greg is IAPDA Certified and has a
good standing in the industry. He owns and manages Practical Debt Relief.
Visit the author's web site at: http://www.practicaldebtrelief.com
Saturday, June 27, 2009
3 Sides of “I Have Already Submitted My Resume”
3 Sides of “I Have Already Submitted My Resume”
by: Brett Stevens
You are interviewing a candidate about a position for your client, and
then you get to the part about interviewing. You ask,” Who have you
submitted your resume too?” I have submitted it to A, B, and C companies.
There are 3 major problems with submitting your resume to a company or
Job Board.
Number One: The Company loses if they haven’t seen the resume. Typically
the recruiter is now out of the process. There is no need to continue the
conversation, because it’s now in the clients resume “abyss.” Therefore
the recruiter is not entitled to a fee. Some clients have honored our
pointing out that the resume has been previously submitted, and had it
not been for the recruiter bringing it to the attention of the client
company this person was currently being overlooked. Other companies don’t
want to know about a candidate that has been submitted, and they are not
entertaining the candidate and you know they have a solid background for
the position. There needs to be a policy in place to handle candidates
that have submitted their resumes in the past, and they are currently not
under consideration.
Number Two: The candidate loses out because the resume is lost, and they
can’t get a shot at the position. I have had candidates actually say,
“Well if you don’t want to represent me, then it’s your loss. The resume
is probably being overlooked.” Both points are valid and have probably
crossed the recruiters mind once or twice during the conversation.
Sending your resume to a several companies has both positive and negative
effects. The positive is you can land a great position. The negatives are
that you are not sure “where in cyberspace” your information is floating
around.
I have had several potential candidates and I have asked them if they
have previously submitted their resume to my client and they say no or
the amnesia surfaces and they can’t remember so it slows the process
down. A couple of weeks ago, I interview a candidate and cover submitting
his resume. He said he had not submitted his resume, and I submit his
credentials and my client calls me back almost immediately and tells me
when they received it. It was just two days prior to our conversation.
Coincidentally, he gets a couple of interviews. He didn’t get the job.
Now I look like I am not qualifying my candidates, and the candidate
lessens his/her qualifications. Then the candidate calls back two or
three weeks later and wants to know about other opportunities. What would
you do?
Another problem occurs when someone sends the resume to a company. The
candidate sends the resume in to a company in the past. As long as six
months prior to the new position opening and the candidate has not been
reactivated.
I was working on a search. The client needed someone with very specific
technical skills. I submit a candidate that had submitted his resume six
months prior to our conversation. Once I submitted it, I get a call from
the client stating they already had the resume on file and I wouldn’t be
entitled to a fee. After some negotiations and stressing the fact that we
brought the candidate to attention of the candidate we should be entitled
to a fee. What is the right thing to do?
Conversely, we hear the hiring manager knows this person. The candidate
takes the initiative to call the person after we have revealed the have
an opening for the same skill sets. Would they have reconnected if the
recruiter had not spent time with the candidate?
Tips for using Job Boards:
Job boards like Monster can be very helpful, but from a recruiters stand
point it’s like using the phone book. We have to search for the right
person, then the screen the person. We will get hundreds of resumes sent
to us. We will narrow down the number of viable resumes by background and
skill sets required. We’ll call five people and amazing only 2 or 3
people will return the call.
• Monitor where you have sent your resume
• Don’t submit your resume for a position that you are not qualified for
• Remove your resume if you are no longer interested in a new opportunity
• Check your resume for spelling errors
• Make sure your contact information is current
• Be realistic about your requirements i.e. salary, relocation, commute
• Be aware that your current employer can find you on job boards like
Monster
Several times we have qualified a candidate and submitted the resume only
to find out it had already been submitted by someone else without their
knowledge. There are recruiters who will submit a resume to “test the
validity” of a search. Hopefully it wasn’t your resume.
Some companies ask recruiters not to use Monster. I feel that is like
asking a recruiter not to use the telephone. Job Boards are like phone
books. You need to “dig out” the proper person. We often hear, “If you
use Monster we will know.” Good but we all have job boards to utilize and
it’s like finding a needle in a haystack. It’s just another resource for
finding the right person for the client.
Submitting your resume if like using the telephone. If someone answers
and takes your call then congratulations. If you keep calling and no one
answers or returns your calls then don’t be disappointed. This goes for
both companies and potential candidates. Think carefully about
“submitting you resume” and then make the best move for your career.
About The Author
Brett Stevens is founder and President of The SearchLogix Group.
http://www.searchlogixgroup.com
Brett has enjoyed remarkable success in the executive search business in
the fields of Software Sales, Logistics, Supply Chain Management,
Distribution, Warehousing, and Transportation. He has achieved the
industry's highest level of professional certification: Certified Senior
Account Manager (CSAM). He has received numerous regional, national, and
international awards through meeting the needs of his clients. He
continues to achieve record breaking performance and has been nationally
recognized for those results with The SearchLogix Group. Brett is a
member of The Council of Supply Chain Management Professionals, formerly
The Council of Logistics Management (CLM), The Association for Operations
Management, The Warehousing Education and Research Council, and The
Institute of Industrial Engineers. He has been recognized in many trade
and online magazines and is a notable guest speaker. Most recently, Brett
was recognized internationally by both the American Stroke Association
and the Prostate Cancer Foundation for his fundraising efforts. You can
email Brett at brett.stevenspr@searchlogixgroup.com or telephone him at
770-517-2660 x20.
by: Brett Stevens
You are interviewing a candidate about a position for your client, and
then you get to the part about interviewing. You ask,” Who have you
submitted your resume too?” I have submitted it to A, B, and C companies.
There are 3 major problems with submitting your resume to a company or
Job Board.
Number One: The Company loses if they haven’t seen the resume. Typically
the recruiter is now out of the process. There is no need to continue the
conversation, because it’s now in the clients resume “abyss.” Therefore
the recruiter is not entitled to a fee. Some clients have honored our
pointing out that the resume has been previously submitted, and had it
not been for the recruiter bringing it to the attention of the client
company this person was currently being overlooked. Other companies don’t
want to know about a candidate that has been submitted, and they are not
entertaining the candidate and you know they have a solid background for
the position. There needs to be a policy in place to handle candidates
that have submitted their resumes in the past, and they are currently not
under consideration.
Number Two: The candidate loses out because the resume is lost, and they
can’t get a shot at the position. I have had candidates actually say,
“Well if you don’t want to represent me, then it’s your loss. The resume
is probably being overlooked.” Both points are valid and have probably
crossed the recruiters mind once or twice during the conversation.
Sending your resume to a several companies has both positive and negative
effects. The positive is you can land a great position. The negatives are
that you are not sure “where in cyberspace” your information is floating
around.
I have had several potential candidates and I have asked them if they
have previously submitted their resume to my client and they say no or
the amnesia surfaces and they can’t remember so it slows the process
down. A couple of weeks ago, I interview a candidate and cover submitting
his resume. He said he had not submitted his resume, and I submit his
credentials and my client calls me back almost immediately and tells me
when they received it. It was just two days prior to our conversation.
Coincidentally, he gets a couple of interviews. He didn’t get the job.
Now I look like I am not qualifying my candidates, and the candidate
lessens his/her qualifications. Then the candidate calls back two or
three weeks later and wants to know about other opportunities. What would
you do?
Another problem occurs when someone sends the resume to a company. The
candidate sends the resume in to a company in the past. As long as six
months prior to the new position opening and the candidate has not been
reactivated.
I was working on a search. The client needed someone with very specific
technical skills. I submit a candidate that had submitted his resume six
months prior to our conversation. Once I submitted it, I get a call from
the client stating they already had the resume on file and I wouldn’t be
entitled to a fee. After some negotiations and stressing the fact that we
brought the candidate to attention of the candidate we should be entitled
to a fee. What is the right thing to do?
Conversely, we hear the hiring manager knows this person. The candidate
takes the initiative to call the person after we have revealed the have
an opening for the same skill sets. Would they have reconnected if the
recruiter had not spent time with the candidate?
Tips for using Job Boards:
Job boards like Monster can be very helpful, but from a recruiters stand
point it’s like using the phone book. We have to search for the right
person, then the screen the person. We will get hundreds of resumes sent
to us. We will narrow down the number of viable resumes by background and
skill sets required. We’ll call five people and amazing only 2 or 3
people will return the call.
• Monitor where you have sent your resume
• Don’t submit your resume for a position that you are not qualified for
• Remove your resume if you are no longer interested in a new opportunity
• Check your resume for spelling errors
• Make sure your contact information is current
• Be realistic about your requirements i.e. salary, relocation, commute
• Be aware that your current employer can find you on job boards like
Monster
Several times we have qualified a candidate and submitted the resume only
to find out it had already been submitted by someone else without their
knowledge. There are recruiters who will submit a resume to “test the
validity” of a search. Hopefully it wasn’t your resume.
Some companies ask recruiters not to use Monster. I feel that is like
asking a recruiter not to use the telephone. Job Boards are like phone
books. You need to “dig out” the proper person. We often hear, “If you
use Monster we will know.” Good but we all have job boards to utilize and
it’s like finding a needle in a haystack. It’s just another resource for
finding the right person for the client.
Submitting your resume if like using the telephone. If someone answers
and takes your call then congratulations. If you keep calling and no one
answers or returns your calls then don’t be disappointed. This goes for
both companies and potential candidates. Think carefully about
“submitting you resume” and then make the best move for your career.
About The Author
Brett Stevens is founder and President of The SearchLogix Group.
http://www.searchlogixgroup.com
Brett has enjoyed remarkable success in the executive search business in
the fields of Software Sales, Logistics, Supply Chain Management,
Distribution, Warehousing, and Transportation. He has achieved the
industry's highest level of professional certification: Certified Senior
Account Manager (CSAM). He has received numerous regional, national, and
international awards through meeting the needs of his clients. He
continues to achieve record breaking performance and has been nationally
recognized for those results with The SearchLogix Group. Brett is a
member of The Council of Supply Chain Management Professionals, formerly
The Council of Logistics Management (CLM), The Association for Operations
Management, The Warehousing Education and Research Council, and The
Institute of Industrial Engineers. He has been recognized in many trade
and online magazines and is a notable guest speaker. Most recently, Brett
was recognized internationally by both the American Stroke Association
and the Prostate Cancer Foundation for his fundraising efforts. You can
email Brett at brett.stevenspr@searchlogixgroup.com or telephone him at
770-517-2660 x20.
Friday, June 26, 2009
Business Deductions - What You Need to Learn About Tax Deductions in Small Businesses
Business Deductions - What You Need to Learn About Tax Deductions in
Small Businesses
by: James A Karl
Today's economic problems have focused on the fact that it is important
more than ever to save every penny you produce in your small business.
With revenues becoming hard to earn, it is no wonder businesses try to
find ways on how to trim costs as much as learning ways to increase
business earnings. Therefore, as a small business you need to determine
the deductions that are required of your business so you can take
advantage of them and also save money in the process. Here are some of
them:
• Running a business includes advertising expenses such as office
supplies, repairs and utilities. These can be deducted as business
expenses but not so before you officially open your business. One tip
wherein you can make a profit immediately is to work around this rule by
delaying paying some of the bills until after you are in business.
• Legal and professional fees such as lawyers and tax consultants' fees
are deducted in the year incurred. But if the overall work relates to the
future years, then they are deducted over the life of the benefit.
• If traveling is required for your business, then you can deduct many
expenses such as cost of the plane ticket, the taxi expenses, lodging
meals, telephone calls and tips.
• Educational expenses can also be included if they are related to your
current business, but you must follow by the strict rules. The education
you will be receiving should be a necessity which can improve your skills
for the advancement of your business.
• Taxes associated with your present business are deductible but this
will usually depend on the type of tax. For instance, the fuel taxes used
for your business car are separately deducted as expenses. In the case of
real estate tax on property, this is deductible along with any special
assessments for maintenance and repairs.
• Advertising costs of goods and services such as yellow pages ads and
business cards are deductible as a current expense. This is also
applicable to promotional costs that helps create business goodwill such
as sponsoring an event which is directly related to your business.
• Like many other small businesses, you may use credit finance business
purchases. In this case, the interest and carrying charges are fully-tax
deductible. This is also pertinent if you are using a personal loan and
will be using it for your business. But you must make sure that you keep
a complete record showing that the proceeds of the loan were really used
for your business. Otherwise, if this is audited later the interest
deductions will not be allowed because it will be considered as a
personal expense.
• Regarding car expenses, the good news is that if you use your car for
business, you can deduct some of the cost of keeping it on the road. This
process can be quite tricky but will be well worth your time.
These are only some of the deductible costs that you can use for your
advantage. Learn them well and rest assured you will be able to save
money and decrease the cost of your expenses in the most beneficial way.
About The Author
For more tips about tax deductions, please check out:
http://www.atouchofbusiness.com/
Small Businesses
by: James A Karl
Today's economic problems have focused on the fact that it is important
more than ever to save every penny you produce in your small business.
With revenues becoming hard to earn, it is no wonder businesses try to
find ways on how to trim costs as much as learning ways to increase
business earnings. Therefore, as a small business you need to determine
the deductions that are required of your business so you can take
advantage of them and also save money in the process. Here are some of
them:
• Running a business includes advertising expenses such as office
supplies, repairs and utilities. These can be deducted as business
expenses but not so before you officially open your business. One tip
wherein you can make a profit immediately is to work around this rule by
delaying paying some of the bills until after you are in business.
• Legal and professional fees such as lawyers and tax consultants' fees
are deducted in the year incurred. But if the overall work relates to the
future years, then they are deducted over the life of the benefit.
• If traveling is required for your business, then you can deduct many
expenses such as cost of the plane ticket, the taxi expenses, lodging
meals, telephone calls and tips.
• Educational expenses can also be included if they are related to your
current business, but you must follow by the strict rules. The education
you will be receiving should be a necessity which can improve your skills
for the advancement of your business.
• Taxes associated with your present business are deductible but this
will usually depend on the type of tax. For instance, the fuel taxes used
for your business car are separately deducted as expenses. In the case of
real estate tax on property, this is deductible along with any special
assessments for maintenance and repairs.
• Advertising costs of goods and services such as yellow pages ads and
business cards are deductible as a current expense. This is also
applicable to promotional costs that helps create business goodwill such
as sponsoring an event which is directly related to your business.
• Like many other small businesses, you may use credit finance business
purchases. In this case, the interest and carrying charges are fully-tax
deductible. This is also pertinent if you are using a personal loan and
will be using it for your business. But you must make sure that you keep
a complete record showing that the proceeds of the loan were really used
for your business. Otherwise, if this is audited later the interest
deductions will not be allowed because it will be considered as a
personal expense.
• Regarding car expenses, the good news is that if you use your car for
business, you can deduct some of the cost of keeping it on the road. This
process can be quite tricky but will be well worth your time.
These are only some of the deductible costs that you can use for your
advantage. Learn them well and rest assured you will be able to save
money and decrease the cost of your expenses in the most beneficial way.
About The Author
For more tips about tax deductions, please check out:
http://www.atouchofbusiness.com/
Thursday, June 25, 2009
Debt Relief for Service Members
Debt Relief for Service Members
by: Lisa Zapalac
Americans' personal debt reached $2.6 trillion earlier this year, and the
men and women of the nation's armed forces have felt their share of
financial pain. However, a nearly 70-year-old law is helping to ease the
debt burden for those called to actively serve their country.
Financial protections for service members exist in the form of the
Servicemembers' Civil Relief Act (SCRA). Under the law, called the
Soldiers and Sailors Civil Relief Act when it was written in 1940 until
it was renamed and updated in 2003, lenders must cap at 6 percent the
interest rates on loans military service members incurred prior to
becoming active.
The 6 percent interest cap applies to any charges -- including credit
card debt, service charges and renewal charges or fees -- except bona
fide insurance. The act specifies that in order to receive the interest
rate reduction, a service member must request it in writing and include a
copy of his or her military orders. Additional protections include:
Reduced interest rates on mortgage payments.
Protection from eviction if your rent is $1,200 or less.
Delay of all civil court actions, such as bankruptcy, foreclosure or
divorce proceedings.
The promise that service members who claim any of the law's protections
would not feel adverse effects on their credit reports or be refused
future credit because of it. (This protection was added during the 2003
revision of the law.)
Some credit card companies even go beyond what the law requires and offer
additional benefits to service members. However, many lenders simply
ignore its requirements, says Cari Auclair, who runs the American
Military Debt Management Services, a service unaffiliated with the
military but that counsels and advises members of the military who are
struggling with debt. There are criminal penalties in many sections of
the SCRA for violations of the act. Additionally, many sections preserve
service members' basic right to bring lawsuits to protect additional
legal rights independent of the SCRA.
Numbers show that U.S. military men and women can use the help, even
though there is some dispute regarding the extent of their debt
difficulties. A 2006 Associated Press review of records from the Navy,
Marines and Air Force revealed a staggering increase in the number of
soldiers who had their clearances to be deployed around the world revoked
as a result of personal debt. The AP found that among the branches that
provided information, the number of clearances revoked because of debt
climbed from 284 in 2002 to 2,654 in 2005 -- a 935 percent spike.
On the other hand, surveys conducted between 2002 and April 2007 by the
Defense Manpower Data Center (DMDC) and the Department of Defense reveal
quite the opposite.
"Data show a downward trend in active-duty service members reporting
difficulty maintaining their finances,"
says Defense Department spokeswoman Eileen M. Lainez. "Information on
financial health gathered at that time shows that the vast majority of
military members were not reporting financial difficulty paying their
rent or mortgage. Over the past three years, more service members have
reported saving for their future."
Air Force Staff Sgt. Brandon Jacobson also denies that personal debt is
any bigger a problem in the military than in the civilian world. He runs
a financial blog called Money for Military and points out that servicemen
and women even have some extra advantages that can help them steer clear
of debt.
"The military is actually provided more protections: free education,
financial assistance that civilian companies would love to charge for,
the service members' Civil Relief Act, and lending protection," says
Jacobson, currently stationed at Beale Air Force Base outside Sacramento,
Calif. "I wouldn't say we're any more susceptible to being in debt than
civilians."
However, Jacobson did recently help a friend on base claim the act's
interest rate reduction. When the friend approached Jacobson for some
financial advice regarding her mounting personal debt, Jacobson noticed
that the majority of her debt -- including credit card debt and car
payments compounding at 16 percent interest -- had accrued before she
joined the Air Force.
"Four of the credit card companies dropped the interest rate down to 6
percent right away," says Jacobson. "On the car loan, she faxed them her
military orders, and they dropped it to 6 percent right away. That's a
better rate than I had on my first car."
The interest cap provision also targets the common practice of payday
lending, which has been shown to prey upon service members with the
promise of a same-day cash loan in exchange for any form of
identification and a post-dated check. The catch: sky-high annual
interest rates that can exceed 400 percent.
And in a time when home foreclosures in the military outnumber those in
the civilian world four-to-one, the SCRA provides the same 6 percent cap
to pre-service mortgages and prevents foreclosure while a service member
is on active duty.
This is serious business to the armed forces. As a rule, the military
views personal debt as a risk to both individual service members and the
interests of the armed forces overseas, as the stress of soldiers'
financial battles back home may distract them from their primary mission
or -- even worse - tempt them to sell secrets to our enemies.
American Military Debt Management Services' Auclair points to what she
views as low pay in the military, the difficulty for spouses seeking new
jobs when a service member is transferred, and the rising cost of living
as contributing to the problem of military personnel's increased debt
load.
"It's a mess," says Auclair. "I've had clients over in Hawaii who can't
even afford to turn their cable on because of the cost of living over
there, and the stipend that the government gives doesn't cover what the
actual cost of living is in an area that is over inflated."
Auclair also dispels the myth that the victims of military debt are
primarily the younger, lower-ranked soldiers who are seeing a steady
income for the first time in their lives.
"After looking at this industry over the last 10 years, I think that the
majority of our clients are not the younger soldiers," she says. "They
are the mid-level officers -- generally not second lieutenants, usually
first lieutenants and up. The reason being, they've had time now to
establish a family and the increases that they're supposed to get paid
don't cover the family costs, and they've had time to rack up the debt."
"Very rarely do we get a younger service member who's just gone hog wild."
To get more details on the act, and to begin the process of applying for
relief, visit the military's Civil Relief Act Web site, run by the
Defense Manpower Data Center.
About The Author
Lisa Zapalac
Vice President, Co-Founder
Public Relations Community/Realtor Affairs
281-692-1400
http://www.casanuevaguide.com
by: Lisa Zapalac
Americans' personal debt reached $2.6 trillion earlier this year, and the
men and women of the nation's armed forces have felt their share of
financial pain. However, a nearly 70-year-old law is helping to ease the
debt burden for those called to actively serve their country.
Financial protections for service members exist in the form of the
Servicemembers' Civil Relief Act (SCRA). Under the law, called the
Soldiers and Sailors Civil Relief Act when it was written in 1940 until
it was renamed and updated in 2003, lenders must cap at 6 percent the
interest rates on loans military service members incurred prior to
becoming active.
The 6 percent interest cap applies to any charges -- including credit
card debt, service charges and renewal charges or fees -- except bona
fide insurance. The act specifies that in order to receive the interest
rate reduction, a service member must request it in writing and include a
copy of his or her military orders. Additional protections include:
Reduced interest rates on mortgage payments.
Protection from eviction if your rent is $1,200 or less.
Delay of all civil court actions, such as bankruptcy, foreclosure or
divorce proceedings.
The promise that service members who claim any of the law's protections
would not feel adverse effects on their credit reports or be refused
future credit because of it. (This protection was added during the 2003
revision of the law.)
Some credit card companies even go beyond what the law requires and offer
additional benefits to service members. However, many lenders simply
ignore its requirements, says Cari Auclair, who runs the American
Military Debt Management Services, a service unaffiliated with the
military but that counsels and advises members of the military who are
struggling with debt. There are criminal penalties in many sections of
the SCRA for violations of the act. Additionally, many sections preserve
service members' basic right to bring lawsuits to protect additional
legal rights independent of the SCRA.
Numbers show that U.S. military men and women can use the help, even
though there is some dispute regarding the extent of their debt
difficulties. A 2006 Associated Press review of records from the Navy,
Marines and Air Force revealed a staggering increase in the number of
soldiers who had their clearances to be deployed around the world revoked
as a result of personal debt. The AP found that among the branches that
provided information, the number of clearances revoked because of debt
climbed from 284 in 2002 to 2,654 in 2005 -- a 935 percent spike.
On the other hand, surveys conducted between 2002 and April 2007 by the
Defense Manpower Data Center (DMDC) and the Department of Defense reveal
quite the opposite.
"Data show a downward trend in active-duty service members reporting
difficulty maintaining their finances,"
says Defense Department spokeswoman Eileen M. Lainez. "Information on
financial health gathered at that time shows that the vast majority of
military members were not reporting financial difficulty paying their
rent or mortgage. Over the past three years, more service members have
reported saving for their future."
Air Force Staff Sgt. Brandon Jacobson also denies that personal debt is
any bigger a problem in the military than in the civilian world. He runs
a financial blog called Money for Military and points out that servicemen
and women even have some extra advantages that can help them steer clear
of debt.
"The military is actually provided more protections: free education,
financial assistance that civilian companies would love to charge for,
the service members' Civil Relief Act, and lending protection," says
Jacobson, currently stationed at Beale Air Force Base outside Sacramento,
Calif. "I wouldn't say we're any more susceptible to being in debt than
civilians."
However, Jacobson did recently help a friend on base claim the act's
interest rate reduction. When the friend approached Jacobson for some
financial advice regarding her mounting personal debt, Jacobson noticed
that the majority of her debt -- including credit card debt and car
payments compounding at 16 percent interest -- had accrued before she
joined the Air Force.
"Four of the credit card companies dropped the interest rate down to 6
percent right away," says Jacobson. "On the car loan, she faxed them her
military orders, and they dropped it to 6 percent right away. That's a
better rate than I had on my first car."
The interest cap provision also targets the common practice of payday
lending, which has been shown to prey upon service members with the
promise of a same-day cash loan in exchange for any form of
identification and a post-dated check. The catch: sky-high annual
interest rates that can exceed 400 percent.
And in a time when home foreclosures in the military outnumber those in
the civilian world four-to-one, the SCRA provides the same 6 percent cap
to pre-service mortgages and prevents foreclosure while a service member
is on active duty.
This is serious business to the armed forces. As a rule, the military
views personal debt as a risk to both individual service members and the
interests of the armed forces overseas, as the stress of soldiers'
financial battles back home may distract them from their primary mission
or -- even worse - tempt them to sell secrets to our enemies.
American Military Debt Management Services' Auclair points to what she
views as low pay in the military, the difficulty for spouses seeking new
jobs when a service member is transferred, and the rising cost of living
as contributing to the problem of military personnel's increased debt
load.
"It's a mess," says Auclair. "I've had clients over in Hawaii who can't
even afford to turn their cable on because of the cost of living over
there, and the stipend that the government gives doesn't cover what the
actual cost of living is in an area that is over inflated."
Auclair also dispels the myth that the victims of military debt are
primarily the younger, lower-ranked soldiers who are seeing a steady
income for the first time in their lives.
"After looking at this industry over the last 10 years, I think that the
majority of our clients are not the younger soldiers," she says. "They
are the mid-level officers -- generally not second lieutenants, usually
first lieutenants and up. The reason being, they've had time now to
establish a family and the increases that they're supposed to get paid
don't cover the family costs, and they've had time to rack up the debt."
"Very rarely do we get a younger service member who's just gone hog wild."
To get more details on the act, and to begin the process of applying for
relief, visit the military's Civil Relief Act Web site, run by the
Defense Manpower Data Center.
About The Author
Lisa Zapalac
Vice President, Co-Founder
Public Relations Community/Realtor Affairs
281-692-1400
http://www.casanuevaguide.com
Wednesday, June 24, 2009
Factors To Consider When Deciding Between HMO And PPO Health Care Plans
Factors To Consider When Deciding Between HMO And PPO Health Care Plans
by: Christine O'Kelly
Faced with ever-increasing medical costs, selecting the best health plan
for you and your family requires informed decision-making on your part.
There are two basic forms of employer sponsored health care plans: HMO &
PPO. Both of them have distinct advantages and disadvantages that you
must be aware of in order to be able to make the best decision possible.
Families without a health plan receive far less preventative health care
and very often, they are not diagnosed with a disease until it reaches
later, less treatable stages. Compounding the problem, individuals
without a health insurance plan, even after diagnosis, receive less
treatment. Studies have shown that approximately 18,000 people die each
year from inadequate medical care. Studies also show that individuals
without a health care plan are hospitalized 30-50% more often for
avoidable conditions. With an average emergency room visit costing
$3,300, the investment in a health insurance is clearly worthwhile.
Managed Health Care Benefits
Managed health care plans reduce medical costs to enrollees, allowing
them to receive medical care that they might not otherwise be able to
afford without a medical plan. Health insurance companies develop
contracts with health care providers, promising to provide specific
doctors and hospitals with more business through their health insurance.
In return, doctors and hospitals agree to provide those services at a
lower cost.
HMOs and PPOs are both managed health care plans that reduce the cost of
medical treatment by combining contributions of enrollees and gaining the
benefits of scale. There are other medical plan mechanisms put into place
to reduce medical costs by encouraging such incentives as preventative
care, enforcing limitations to coverage and increased beneficiary cost
sharing. Each health care plan has advantages and disadvantages that must
be considered. There are significant price, service, and flexibility
differences between these two types of medical plans. Whichever medical
plan you select, you will be able to receive more medical care for far
less money than if you had no insurance at all.
HMOs Are An Inexpensive Option
HMOs, or Health Maintenance Organizations, are health plans characterized
as cooperatives of doctors, hospitals, and other medical providers. HMOs
such as Kaiser Permanente and Aetna are your least expensive and most
restrictive health care plan. Under HMO policies, health insurance
providers have agreed to provide their services at fixed prices and
copayments are generally very low. Since health care providers receive
less money for their services, they tend to see as many patients as
possible.
There are many rules covering HMO medical plan services, the most
important one being the requirement that your physician be a member of
the HMO. If you need to see a specialist, you must see your primary
physician for a referral. HMOs focus primarily upon preventative health
care services such as immunizations and physicals. HMO doctors are paid
on a per office visit basis.
PPOs Cost More And Provide More
PPOs, or Preferred Provider Organizations, are health care plans that
have contracts with insurance companies to reduce medical expenses to
enrollees. PPOs like Blue Cross Blue Shield are more expensive than HMOs,
but you have much more freedom about who you see. Referrals are not
needed to see a specialist, but your medical plan will require that you
pay more to see a doctor that is not a member of the PPO medical plan.
Enrolling in a PPO provides you with more control over your health care
plan as well as greater autonomy. Unlike HMOs, emergency room visits are
generally covered under PPO medical plans. PPO doctors are paid on a
retainer basis, thereby providing them with no incentive to unnecessarily
prolong treatment.
One aspect of a managed health care plan is that treatments are reviewed
by the insurer. In some cases, this can eliminate unnecessary procedures
and overcharging, thereby saving both the insurer and enrollees' time and
money. Whichever coverage you select, you will provide your family with
access to the benefits of regular, preventative care and early diagnosis
of more serious conditions, increasing the likelihood of recovery. Eat
right, stay fit, and enroll in a health care plan!
About The Author
Christine O'Kelly is a contributor writer for Health Insurance Finders.
She conducts in depth research on topics such as HMO Health Insurance
Plans http://www.healthinsurancefinders.com/hmo_plans.html and PPO Personal
Health Insurance
http://www.healthinsurancefinders.com/ppo_plans.html.
Visit the author's web site at: http://www.healthinsurancefinders.com
by: Christine O'Kelly
Faced with ever-increasing medical costs, selecting the best health plan
for you and your family requires informed decision-making on your part.
There are two basic forms of employer sponsored health care plans: HMO &
PPO. Both of them have distinct advantages and disadvantages that you
must be aware of in order to be able to make the best decision possible.
Families without a health plan receive far less preventative health care
and very often, they are not diagnosed with a disease until it reaches
later, less treatable stages. Compounding the problem, individuals
without a health insurance plan, even after diagnosis, receive less
treatment. Studies have shown that approximately 18,000 people die each
year from inadequate medical care. Studies also show that individuals
without a health care plan are hospitalized 30-50% more often for
avoidable conditions. With an average emergency room visit costing
$3,300, the investment in a health insurance is clearly worthwhile.
Managed Health Care Benefits
Managed health care plans reduce medical costs to enrollees, allowing
them to receive medical care that they might not otherwise be able to
afford without a medical plan. Health insurance companies develop
contracts with health care providers, promising to provide specific
doctors and hospitals with more business through their health insurance.
In return, doctors and hospitals agree to provide those services at a
lower cost.
HMOs and PPOs are both managed health care plans that reduce the cost of
medical treatment by combining contributions of enrollees and gaining the
benefits of scale. There are other medical plan mechanisms put into place
to reduce medical costs by encouraging such incentives as preventative
care, enforcing limitations to coverage and increased beneficiary cost
sharing. Each health care plan has advantages and disadvantages that must
be considered. There are significant price, service, and flexibility
differences between these two types of medical plans. Whichever medical
plan you select, you will be able to receive more medical care for far
less money than if you had no insurance at all.
HMOs Are An Inexpensive Option
HMOs, or Health Maintenance Organizations, are health plans characterized
as cooperatives of doctors, hospitals, and other medical providers. HMOs
such as Kaiser Permanente and Aetna are your least expensive and most
restrictive health care plan. Under HMO policies, health insurance
providers have agreed to provide their services at fixed prices and
copayments are generally very low. Since health care providers receive
less money for their services, they tend to see as many patients as
possible.
There are many rules covering HMO medical plan services, the most
important one being the requirement that your physician be a member of
the HMO. If you need to see a specialist, you must see your primary
physician for a referral. HMOs focus primarily upon preventative health
care services such as immunizations and physicals. HMO doctors are paid
on a per office visit basis.
PPOs Cost More And Provide More
PPOs, or Preferred Provider Organizations, are health care plans that
have contracts with insurance companies to reduce medical expenses to
enrollees. PPOs like Blue Cross Blue Shield are more expensive than HMOs,
but you have much more freedom about who you see. Referrals are not
needed to see a specialist, but your medical plan will require that you
pay more to see a doctor that is not a member of the PPO medical plan.
Enrolling in a PPO provides you with more control over your health care
plan as well as greater autonomy. Unlike HMOs, emergency room visits are
generally covered under PPO medical plans. PPO doctors are paid on a
retainer basis, thereby providing them with no incentive to unnecessarily
prolong treatment.
One aspect of a managed health care plan is that treatments are reviewed
by the insurer. In some cases, this can eliminate unnecessary procedures
and overcharging, thereby saving both the insurer and enrollees' time and
money. Whichever coverage you select, you will provide your family with
access to the benefits of regular, preventative care and early diagnosis
of more serious conditions, increasing the likelihood of recovery. Eat
right, stay fit, and enroll in a health care plan!
About The Author
Christine O'Kelly is a contributor writer for Health Insurance Finders.
She conducts in depth research on topics such as HMO Health Insurance
Plans http://www.healthinsurancefinders.com/hmo_plans.html and PPO Personal
Health Insurance
http://www.healthinsurancefinders.com/ppo_plans.html.
Visit the author's web site at: http://www.healthinsurancefinders.com
Tuesday, June 23, 2009
Four Things to Understand About Prepayment Penalties
Four Things to Understand About Prepayment Penalties
by: John Steely
If you have a mortgage, of any type, many people will give you the advice
to make extra payments on the mortgage in order to pay off the mortgage
that much sooner. Indeed, depending on the interest rate of the mortgage,
making extra payments has a return in line with the best money market
accounts. And you get debt free that much sooner. Whether or not you
should pay extra on your mortgage depends on many factors, and there are
many articles written about doing that; one of the factors involved is
whether there are prepayment penalties in your mortgage or not.
So, if you are going to make an informed decision about paying off your
mortgage early, whether through extra payments or through refinancing
your mortgage (which mortgage companies would love for you to do), you
need to understand what prepayment penalties are, how they work, and why
do they exist.
Types of Prepayment Penalties
If your mortgage has prepayment penalties, they are in place for a period
of time at the beginning of the mortgage. That period of time is anywhere
from two to five years; after that period is done, the penalty no longer
applies. The reason the prepayment penalty only exists for the first few
years of the mortgage is because the mortgage company has incurred
certain expenses in making the mortgage, above and beyond what you are
charged when the mortgage is closed. One example of such expenses is the
commissions paid to the people involved in originating the mortgage. The
mortgage company wants to make sure they get enough interest to cover
such expenses, so if you pay off the mortgage too early, they will put a
prepayment penalty to collect enough money to cover such expenses.
There are two types of prepayment penalties. The hard prepayment penalty
is one that is charged regardless of how the loan is paid off. No matter
what the circumstances, a hard prepayment penalty will be charged in
addition to the monies needed to pay off the principal. The soft
prepayment will not be charged under certain conditions; the two most
common ways to avoid a soft prepayment penalty are either to sell the
house or to refinance the mortgage through the original lender. If you
simply put enough extra money into the mortgage or if you refinance
through another company, the soft prepayment penalty will be charged.
How is the Penalty Calculated
Prepayment penalties will be triggered when one of two conditions is met;
the mortgage must specify which conditions apply. The first type of
penalty will is called a first dollar penalty, and it will be triggered
whenever any extra money is applied to the principal. The usual
calculation with this type of penalty is 80% of the interest owed on the
extra money. Let us say you have a loan at 7% and you put an extra $100
on the principal one month. This type of penalty will charge you 80% of
the 7% interest due on the extra $100, or $5.60. The exact details are in
your mortgage. This penalty will be due every time you make extra
payments on the principal.
The second type of penalty is called the 20% penalty. In this case, the
penalty is triggered when you have paid an extra 20% of the principal.
Again, let us say you have a mortgage of $150,000 at 7% interest. With
this penalty, nothing will be charged until you have made extra payments
totaling $30,000. When this amount is reached, you will be charged 6
months interest on 80% of the remaining principal. For example, let say
in the above mortgage you made regular payments and reduced the principal
down to $140,000, and then you came into an inheritance and put $30,000
on the loan, thus reducing the principal down to $110,000. Your penalty
will be 6 months interest of 7% on $88,000, or $3,080. This penalty will
be due the first time the trigger event occurs, but only the first time.
Many states put a cap on the size of the prepayment penalty. For example,
my state, Virginia, has a cap of 2% of the owing principal as a penalty.
Why should I accept a Prepayment Penalty
Many people will tell you to never accept a mortgage with a prepayment
penalty of any type; they will tell you it limits your options. However,
the mortgage company will compensate you for a prepayment penalty in one
of two ways; they will either reduce the interest rate of the mortgage
by, say, half a percentage point, which could save you several thousand
dollars over the life time of the mortgage, or they will reduce the loan
points at the time of closing by one or two points, which again can save
you a couple of thousand dollars.
The issue is where you see yourself heading. If you are planning on
moving in the period covered by the prepayment penalty, then it may be
worth your while to accept the higher rate or points so that you will not
incur the penalty. If you are comfortable with the idea of not moving
during the prepayment penalty period of two to five years, take the
penalty and the lower rate and/or points.
Explicit Penalties Only
In either case, whether you have a mortgage now or not, the prepayment
penalties must be spelled out in detail in the mortgage contract. If you
are unsure, have a financial professional look at the mortgage; such a
professional is trained at understanding this type of clause.
If someone comes to you with a deal, particularly a refinancing deal,
make sure you know what you would have to pay before you accept the
promised loan. You may be surprised to find all your supposed savings
eaten up by these kinds of penalties and fees. A lower rate does not
always make the best deal.
About The Author
John Steely has been a teacher for over 25 years, in such areas as
mathematics, finance, and leadership. For the last 5 years, he has been
providing services as a financial planner.
Visit the author's web site at: http://www.learningmoneybasics.com
by: John Steely
If you have a mortgage, of any type, many people will give you the advice
to make extra payments on the mortgage in order to pay off the mortgage
that much sooner. Indeed, depending on the interest rate of the mortgage,
making extra payments has a return in line with the best money market
accounts. And you get debt free that much sooner. Whether or not you
should pay extra on your mortgage depends on many factors, and there are
many articles written about doing that; one of the factors involved is
whether there are prepayment penalties in your mortgage or not.
So, if you are going to make an informed decision about paying off your
mortgage early, whether through extra payments or through refinancing
your mortgage (which mortgage companies would love for you to do), you
need to understand what prepayment penalties are, how they work, and why
do they exist.
Types of Prepayment Penalties
If your mortgage has prepayment penalties, they are in place for a period
of time at the beginning of the mortgage. That period of time is anywhere
from two to five years; after that period is done, the penalty no longer
applies. The reason the prepayment penalty only exists for the first few
years of the mortgage is because the mortgage company has incurred
certain expenses in making the mortgage, above and beyond what you are
charged when the mortgage is closed. One example of such expenses is the
commissions paid to the people involved in originating the mortgage. The
mortgage company wants to make sure they get enough interest to cover
such expenses, so if you pay off the mortgage too early, they will put a
prepayment penalty to collect enough money to cover such expenses.
There are two types of prepayment penalties. The hard prepayment penalty
is one that is charged regardless of how the loan is paid off. No matter
what the circumstances, a hard prepayment penalty will be charged in
addition to the monies needed to pay off the principal. The soft
prepayment will not be charged under certain conditions; the two most
common ways to avoid a soft prepayment penalty are either to sell the
house or to refinance the mortgage through the original lender. If you
simply put enough extra money into the mortgage or if you refinance
through another company, the soft prepayment penalty will be charged.
How is the Penalty Calculated
Prepayment penalties will be triggered when one of two conditions is met;
the mortgage must specify which conditions apply. The first type of
penalty will is called a first dollar penalty, and it will be triggered
whenever any extra money is applied to the principal. The usual
calculation with this type of penalty is 80% of the interest owed on the
extra money. Let us say you have a loan at 7% and you put an extra $100
on the principal one month. This type of penalty will charge you 80% of
the 7% interest due on the extra $100, or $5.60. The exact details are in
your mortgage. This penalty will be due every time you make extra
payments on the principal.
The second type of penalty is called the 20% penalty. In this case, the
penalty is triggered when you have paid an extra 20% of the principal.
Again, let us say you have a mortgage of $150,000 at 7% interest. With
this penalty, nothing will be charged until you have made extra payments
totaling $30,000. When this amount is reached, you will be charged 6
months interest on 80% of the remaining principal. For example, let say
in the above mortgage you made regular payments and reduced the principal
down to $140,000, and then you came into an inheritance and put $30,000
on the loan, thus reducing the principal down to $110,000. Your penalty
will be 6 months interest of 7% on $88,000, or $3,080. This penalty will
be due the first time the trigger event occurs, but only the first time.
Many states put a cap on the size of the prepayment penalty. For example,
my state, Virginia, has a cap of 2% of the owing principal as a penalty.
Why should I accept a Prepayment Penalty
Many people will tell you to never accept a mortgage with a prepayment
penalty of any type; they will tell you it limits your options. However,
the mortgage company will compensate you for a prepayment penalty in one
of two ways; they will either reduce the interest rate of the mortgage
by, say, half a percentage point, which could save you several thousand
dollars over the life time of the mortgage, or they will reduce the loan
points at the time of closing by one or two points, which again can save
you a couple of thousand dollars.
The issue is where you see yourself heading. If you are planning on
moving in the period covered by the prepayment penalty, then it may be
worth your while to accept the higher rate or points so that you will not
incur the penalty. If you are comfortable with the idea of not moving
during the prepayment penalty period of two to five years, take the
penalty and the lower rate and/or points.
Explicit Penalties Only
In either case, whether you have a mortgage now or not, the prepayment
penalties must be spelled out in detail in the mortgage contract. If you
are unsure, have a financial professional look at the mortgage; such a
professional is trained at understanding this type of clause.
If someone comes to you with a deal, particularly a refinancing deal,
make sure you know what you would have to pay before you accept the
promised loan. You may be surprised to find all your supposed savings
eaten up by these kinds of penalties and fees. A lower rate does not
always make the best deal.
About The Author
John Steely has been a teacher for over 25 years, in such areas as
mathematics, finance, and leadership. For the last 5 years, he has been
providing services as a financial planner.
Visit the author's web site at: http://www.learningmoneybasics.com
Monday, June 22, 2009
Understanding REITs - How Real Estate Mutual Funds Work
Understanding REITs - How Real Estate Mutual Funds Work
by: Robert Shumake
If you are new to the world of investing, you probably have a lot of
questions about how it all works. What's the difference between stocks,
bonds, and mutual funds? What really is happening in the stock market and
which investments are the wise ones to make? Here's a look at the smart
side of investing as well as a deeper look into the world of real estate
mutual funds.
First, it is wise to understand what real estate mutual funds are. Real
estate mutual funds are essentially portfolios where shares of a variety
of stocks and bonds are purchased and put in one package that you can
then purchase shares of. In the case of real estate mutual funds you are
purchasing shares of stocks and bonds that are specifically in the real
estate arena.
There are two types of mutual funds – open and closed-end mutual funds.
Open-end mutual funds are those that can grow and have unlimited numbers
of shares. The way it works is, as new shareholders want to buy in, the
fund will purchase more and more shares of the assets inside of it. On
the other hand, closed end funds have a set number of shares when they go
up for an IPO. Once those shares are purchased someone has to sell shares
in order for someone else to be able to buy into the fund.
A similar item to purchase is real estate investment trusts, also known
as REITs. These generally are shares in particular real estate interests.
This could mean that you are purchasing shares into a series of apartment
complexes, condos or commercial properties. Your shares in this case are
used to purchase property, maintain it and then profit from it. The
profits that come from the REITs are mostly given back to the
shareholders in the form of dividends. At least 90 percent of the profit
must be returned to shareholders.
If you are pretty sure you want to purchase real estate mutual funds, you
may be wondering where you should purchase them and when? No one wants to
buy into something just to have it drop.
When it comes to the where of purchasing, consider a brokerage firm that
is only focused on real estate mutual funds and REITS. REITBuyer.com is
one such company. They are the only site that just does REITs and real
estate mutual funds. As an online brokerage that specializes in REITs and
real estate mutual funds, you know they will have the type of focus and
attention to detail on the investments you are planning to sink your
money into. The more the brokerage knows about these things, the more you
can learn about them, meaning you can make much wiser investments.
As for the when of buying into real estate mutual funds, this is the
perfect time to buy. Right now the markets are at a record low. That
means they will soon start moving back up again. Those who have the money
to invest right now stand to be able to make great profits when the
market rises again.
About The Author
Robert Shumake's mission is to inform the public about mortgage fraud and
real estate scams and to provide tips on how to avoid being a victim.
"Sometimes people will commit identity theft to obtain a housing loan,
sell someone else's house or take over someone else's property," says
Shumake. "It is my goal to inform the public on how to protect themselves
from being victims of this crime."
http://reitbuyer.com
by: Robert Shumake
If you are new to the world of investing, you probably have a lot of
questions about how it all works. What's the difference between stocks,
bonds, and mutual funds? What really is happening in the stock market and
which investments are the wise ones to make? Here's a look at the smart
side of investing as well as a deeper look into the world of real estate
mutual funds.
First, it is wise to understand what real estate mutual funds are. Real
estate mutual funds are essentially portfolios where shares of a variety
of stocks and bonds are purchased and put in one package that you can
then purchase shares of. In the case of real estate mutual funds you are
purchasing shares of stocks and bonds that are specifically in the real
estate arena.
There are two types of mutual funds – open and closed-end mutual funds.
Open-end mutual funds are those that can grow and have unlimited numbers
of shares. The way it works is, as new shareholders want to buy in, the
fund will purchase more and more shares of the assets inside of it. On
the other hand, closed end funds have a set number of shares when they go
up for an IPO. Once those shares are purchased someone has to sell shares
in order for someone else to be able to buy into the fund.
A similar item to purchase is real estate investment trusts, also known
as REITs. These generally are shares in particular real estate interests.
This could mean that you are purchasing shares into a series of apartment
complexes, condos or commercial properties. Your shares in this case are
used to purchase property, maintain it and then profit from it. The
profits that come from the REITs are mostly given back to the
shareholders in the form of dividends. At least 90 percent of the profit
must be returned to shareholders.
If you are pretty sure you want to purchase real estate mutual funds, you
may be wondering where you should purchase them and when? No one wants to
buy into something just to have it drop.
When it comes to the where of purchasing, consider a brokerage firm that
is only focused on real estate mutual funds and REITS. REITBuyer.com is
one such company. They are the only site that just does REITs and real
estate mutual funds. As an online brokerage that specializes in REITs and
real estate mutual funds, you know they will have the type of focus and
attention to detail on the investments you are planning to sink your
money into. The more the brokerage knows about these things, the more you
can learn about them, meaning you can make much wiser investments.
As for the when of buying into real estate mutual funds, this is the
perfect time to buy. Right now the markets are at a record low. That
means they will soon start moving back up again. Those who have the money
to invest right now stand to be able to make great profits when the
market rises again.
About The Author
Robert Shumake's mission is to inform the public about mortgage fraud and
real estate scams and to provide tips on how to avoid being a victim.
"Sometimes people will commit identity theft to obtain a housing loan,
sell someone else's house or take over someone else's property," says
Shumake. "It is my goal to inform the public on how to protect themselves
from being victims of this crime."
http://reitbuyer.com
Sunday, June 21, 2009
Tips That You Can Use To Buy A Top Annuity
Tips That You Can Use To Buy A Top Annuity
by: Steven Hart
There are different investments that you can have, and buy annuities is
one of them. Annuities can be a good investment for individuals looking
to save for retirement. On the other hand, they may be a tragedy for
individuals that are not aware of the drawbacks and dangers that can
easily occur with them. If you are looking for annuities that you can use
as your retirement plan or an investment for your vehicles, then you must
think about several things so that you can avail the top annuity that you
can use.
Safety measures that should be considered
There are different things that should be put into consideration when
shopping for a top annuity. One of these things is that individuals ought
not to buy annuities that have long surrender periods. The reason for
that is the money will be locked up for a long time and that you will
have to surrender money for a long period. Moreover, it is important not
to buy such annuities because there are other similar annuities with the
similar interest rates yet the surrender period is much shorter.
In addition, if you are talked into a top annuity that offers first year
bonus interest rates, it is best that you do not buy one. This is due to
that companies that offer bonus interest rates on the first year deposit
usually have long surrender periods. Moreover, it is important to have
knowledge about the importance of the partial 1035 exchange and the
exclusion ratios. This part is important yet to a certain extent is a
complex matter. You have to properly structure the annuity contract from
the starting day. This is so that you can maximize the taxable exclusion
ratios. This will greatly help if you decide to take an annuitization
income from your pensions in the future.
Furthermore, when buying a top annuity, it is best that you do not use
small companies especially if the company has dubious financial ratings.
It is vital to know the paying ability of the companies to those that are
collecting their claims. This is what many people often forget. They buy
annuities without even factoring things such as bankruptcy of the
insuring company. There is a possibility that bankruptcy may happen
especially if the insuring company has financial troubles. For that
reason, it is best to consider this factor.
It is also vital to know the assured coverage for every individual for
every insurance company. If the insuring company becomes bankrupt, there
should be a guaranteed cover for every person for every insuring company.
If the insuring company does not provide such coverage, then you should
not invest with that company. The reason for this is if the company goes
bankrupt, the individual that has invested in it can lose his or her
savings.
Overall, you must choose the right insuring company when buying annuities
that you need. Moreover, it is best to have safety measures when looking
for companies where you will buy annuities. You can look into
http://www.freeannuityrates.com
to have more idea on how to buy a top annuity.
About The Author
Steven Hart is author of this article on Top Annuity. Find more
information about Buy Annuities here http://www.freeannuityrates.com
by: Steven Hart
There are different investments that you can have, and buy annuities is
one of them. Annuities can be a good investment for individuals looking
to save for retirement. On the other hand, they may be a tragedy for
individuals that are not aware of the drawbacks and dangers that can
easily occur with them. If you are looking for annuities that you can use
as your retirement plan or an investment for your vehicles, then you must
think about several things so that you can avail the top annuity that you
can use.
Safety measures that should be considered
There are different things that should be put into consideration when
shopping for a top annuity. One of these things is that individuals ought
not to buy annuities that have long surrender periods. The reason for
that is the money will be locked up for a long time and that you will
have to surrender money for a long period. Moreover, it is important not
to buy such annuities because there are other similar annuities with the
similar interest rates yet the surrender period is much shorter.
In addition, if you are talked into a top annuity that offers first year
bonus interest rates, it is best that you do not buy one. This is due to
that companies that offer bonus interest rates on the first year deposit
usually have long surrender periods. Moreover, it is important to have
knowledge about the importance of the partial 1035 exchange and the
exclusion ratios. This part is important yet to a certain extent is a
complex matter. You have to properly structure the annuity contract from
the starting day. This is so that you can maximize the taxable exclusion
ratios. This will greatly help if you decide to take an annuitization
income from your pensions in the future.
Furthermore, when buying a top annuity, it is best that you do not use
small companies especially if the company has dubious financial ratings.
It is vital to know the paying ability of the companies to those that are
collecting their claims. This is what many people often forget. They buy
annuities without even factoring things such as bankruptcy of the
insuring company. There is a possibility that bankruptcy may happen
especially if the insuring company has financial troubles. For that
reason, it is best to consider this factor.
It is also vital to know the assured coverage for every individual for
every insurance company. If the insuring company becomes bankrupt, there
should be a guaranteed cover for every person for every insuring company.
If the insuring company does not provide such coverage, then you should
not invest with that company. The reason for this is if the company goes
bankrupt, the individual that has invested in it can lose his or her
savings.
Overall, you must choose the right insuring company when buying annuities
that you need. Moreover, it is best to have safety measures when looking
for companies where you will buy annuities. You can look into
http://www.freeannuityrates.com
to have more idea on how to buy a top annuity.
About The Author
Steven Hart is author of this article on Top Annuity. Find more
information about Buy Annuities here http://www.freeannuityrates.com
Saturday, June 20, 2009
REITs and Real Estate Mutual Funds Investing - Scams
REITs and Real Estate Mutual Funds Investing - Scams
by: Robert Shumake
As you begin your investing life, you may have a lot of thoughts in your
head about how investing works and how you acquire and sell stocks,
bonds, mutual funds and other commodities on the stock market. Before you
start throwing your money around you need to understand that most days on
the stock market are not like what you have seen in the movies.
Often in the movies you see a person get a 'great tip' and run to buy up
that stock and make a fortune. They are buying and selling as quick as
they can when tips come in and while they may have started with a few
dollars, suddenly they are a millionaire.
Real life is not like the movies. In real life more often than not those
great investing tips are scams. They may come in the form of e-mails that
offer just you a hot tip about the next big thing that will be hitting
the market.
The only person who is going to profit from this deal is the person who
sent you the e-mail. Usually they are the owner of a company that will
profit when everyone jumps onto that stock. They will sell to you for a
higher price and then when the stock goes to it's real value, which is
much lower than the hype has made it, they will reap the profits while
you will lose your hard earned money.
Instead, you should only put your money into wise investments. One of the
wisest is real estate. Sure, real estate, like every other market, is
dealing with a tough time right now. But that does not mean it is going
to fall through the floor. Instead real estate mutual funds and REITs
have the benefit of a little more stability since they are built on the
foundation of a tangible asset – real estate.
In addition to knowing which market to invest in, there are plenty of
avenues in those markets. While you could purchase individual stocks or
bonds, you may want to go with something a little more solid and diverse
like real estate mutual funds and REITs or real estate investment trusts.
The reason these are more solid is that they are not putting all of their
eggs in one basket. Instead the real estate mutual fund or REIT basket is
filled with a number of real estate related stocks and bonds and
therefore you are getting a lot of shares for one buy in.
The hard part is often picking which one you want. By going onto a
website like REITBuyer.com you can look at the latest news and research
on real estate mutual funds and REITs. REITBuyer.com is the first and
only online brokerage specializing in REITs and real estate mutual funds
so you will have all the information you need at your fingertips without
having to dig through information that is useless to you. Once you've
selected the real estate mutual fund or REIT that is right for you, you
will also be able to make a purchase and watch your portfolio in the same
place.
About The Author
Robert Shumake's mission is to inform the public about mortgage fraud and
real estate scams and to provide tips on how to avoid being a victim.
"Sometimes people will commit identity theft to obtain a housing loan,
sell someone else's house or take over someone else's property," says
Shumake. "It is my goal to inform the public on how to protect themselves
from being victims of this crime."
http://reitbuyer.com
by: Robert Shumake
As you begin your investing life, you may have a lot of thoughts in your
head about how investing works and how you acquire and sell stocks,
bonds, mutual funds and other commodities on the stock market. Before you
start throwing your money around you need to understand that most days on
the stock market are not like what you have seen in the movies.
Often in the movies you see a person get a 'great tip' and run to buy up
that stock and make a fortune. They are buying and selling as quick as
they can when tips come in and while they may have started with a few
dollars, suddenly they are a millionaire.
Real life is not like the movies. In real life more often than not those
great investing tips are scams. They may come in the form of e-mails that
offer just you a hot tip about the next big thing that will be hitting
the market.
The only person who is going to profit from this deal is the person who
sent you the e-mail. Usually they are the owner of a company that will
profit when everyone jumps onto that stock. They will sell to you for a
higher price and then when the stock goes to it's real value, which is
much lower than the hype has made it, they will reap the profits while
you will lose your hard earned money.
Instead, you should only put your money into wise investments. One of the
wisest is real estate. Sure, real estate, like every other market, is
dealing with a tough time right now. But that does not mean it is going
to fall through the floor. Instead real estate mutual funds and REITs
have the benefit of a little more stability since they are built on the
foundation of a tangible asset – real estate.
In addition to knowing which market to invest in, there are plenty of
avenues in those markets. While you could purchase individual stocks or
bonds, you may want to go with something a little more solid and diverse
like real estate mutual funds and REITs or real estate investment trusts.
The reason these are more solid is that they are not putting all of their
eggs in one basket. Instead the real estate mutual fund or REIT basket is
filled with a number of real estate related stocks and bonds and
therefore you are getting a lot of shares for one buy in.
The hard part is often picking which one you want. By going onto a
website like REITBuyer.com you can look at the latest news and research
on real estate mutual funds and REITs. REITBuyer.com is the first and
only online brokerage specializing in REITs and real estate mutual funds
so you will have all the information you need at your fingertips without
having to dig through information that is useless to you. Once you've
selected the real estate mutual fund or REIT that is right for you, you
will also be able to make a purchase and watch your portfolio in the same
place.
About The Author
Robert Shumake's mission is to inform the public about mortgage fraud and
real estate scams and to provide tips on how to avoid being a victim.
"Sometimes people will commit identity theft to obtain a housing loan,
sell someone else's house or take over someone else's property," says
Shumake. "It is my goal to inform the public on how to protect themselves
from being victims of this crime."
http://reitbuyer.com
Friday, June 19, 2009
A Guide to Credit Card Counseling
A Guide to Credit Card Counseling
by: Justin Narin
Credit cards are one of the leading causes of consumer debt.
Unfortunately, 2005 bankruptcy reform laws made it harder than ever to
reduce credit card debt through bankruptcy. Fortunately, you can still
find a way out of debt if you’re committed. Credit counseling can help.
If you’re drowning in debt, you have to stop using your cards. Paying
cash is the only way to get a true picture of how and where you spend
money. Paying cash also curbs your spending because it feels like “real
money.” Once you’ve reduced your spending, you’ll have more money to pay
off the debts.
Start by cutting up your credit cards. Then contact your creditors and
ask them to reduce your interest rates. You should also consider debt
consolidation to further lower your interest rates and streamline your
payments.
If that doesn’t help you begin to pay down your debt, then it’s time to
get professional help from a credit counseling service.
Professional Credit Card Counseling
When you visit a credit counseling service, don’t expect a magic bullet
that will eliminate your debts and allow you to keep spending the way you
always have. Instead, you’ll be expected to change your spending habits
and work had to pay off your debt. Most counselors will walk you through
the following steps:
* Stop using credit cards. You can’t get out of debt while you continue
to create new debt.
* Analyze your income and expenses. As the counselor goes over your
budget with you, she’ll recommend places you can cut your spending to
free up more money for debt payments. For example, she may suggest
cancelling cable, eating out less, driving less, or not buying clothes,
accessories, and entertainment products while you work on your debt.
* Create a debt solution. Most counselors will recommend one of three
debt solutions: credit card consolidation, debt management, and debt
settlement.
* With debt consolidation, the counselor will arrange for a personal or
home equity loan that will be used to pay off your other debts. You’ll
then have the responsibility of paying off the consolidation loan.
* With a debt management plan, all of your debts will be enrolled in a
2-4 year program. The counselor negotiates with your creditors to lower
your interest rates. You then pay the service every month, which
distributes the funds appropriately. You’re barred from using the cards
or acquiring new debt while in the program.
* With debt settlement, your counselor will negotiate with your creditors
to reduce the total balance due. This option is reserved for very serious
situations because it will damage your credit history and credit score
significantly. There may also be tax implications.
The solution recommended by the debt counselor depends largely on your
current income, necessary expenses, and the size of your debt. Try to
find the solution with the lowest fees and fastest resolution so that you
can get out of debt and move forward with your new-debt free life.
You should also work hard to change your spending habits so that you
don’t find yourself in debt again. Ask your counselor for educational
materials about budgeting, money management, and financial planning. The
credit counseling service may also offer free or low-cost classes on
controlling even your required expenses, like groceries. The more you
save on your expenses, the more you have to pay off those credit cards.
If you need to get your debt under control, and the DIY options aren’t
right for you, contact a credit counseling service for help finding the
best solution for you. You can get out of debt.
For more articles on credit card counseling, please visit:
http://www.bills.com/credit-card-counseling/
About The Author
Justin Narin has 5 years of experience as a financial adviser; his key
areas are loan consolidation, debt relief, mortgages etc. For more free
articles and advice visit http://www.Bills.com.
by: Justin Narin
Credit cards are one of the leading causes of consumer debt.
Unfortunately, 2005 bankruptcy reform laws made it harder than ever to
reduce credit card debt through bankruptcy. Fortunately, you can still
find a way out of debt if you’re committed. Credit counseling can help.
If you’re drowning in debt, you have to stop using your cards. Paying
cash is the only way to get a true picture of how and where you spend
money. Paying cash also curbs your spending because it feels like “real
money.” Once you’ve reduced your spending, you’ll have more money to pay
off the debts.
Start by cutting up your credit cards. Then contact your creditors and
ask them to reduce your interest rates. You should also consider debt
consolidation to further lower your interest rates and streamline your
payments.
If that doesn’t help you begin to pay down your debt, then it’s time to
get professional help from a credit counseling service.
Professional Credit Card Counseling
When you visit a credit counseling service, don’t expect a magic bullet
that will eliminate your debts and allow you to keep spending the way you
always have. Instead, you’ll be expected to change your spending habits
and work had to pay off your debt. Most counselors will walk you through
the following steps:
* Stop using credit cards. You can’t get out of debt while you continue
to create new debt.
* Analyze your income and expenses. As the counselor goes over your
budget with you, she’ll recommend places you can cut your spending to
free up more money for debt payments. For example, she may suggest
cancelling cable, eating out less, driving less, or not buying clothes,
accessories, and entertainment products while you work on your debt.
* Create a debt solution. Most counselors will recommend one of three
debt solutions: credit card consolidation, debt management, and debt
settlement.
* With debt consolidation, the counselor will arrange for a personal or
home equity loan that will be used to pay off your other debts. You’ll
then have the responsibility of paying off the consolidation loan.
* With a debt management plan, all of your debts will be enrolled in a
2-4 year program. The counselor negotiates with your creditors to lower
your interest rates. You then pay the service every month, which
distributes the funds appropriately. You’re barred from using the cards
or acquiring new debt while in the program.
* With debt settlement, your counselor will negotiate with your creditors
to reduce the total balance due. This option is reserved for very serious
situations because it will damage your credit history and credit score
significantly. There may also be tax implications.
The solution recommended by the debt counselor depends largely on your
current income, necessary expenses, and the size of your debt. Try to
find the solution with the lowest fees and fastest resolution so that you
can get out of debt and move forward with your new-debt free life.
You should also work hard to change your spending habits so that you
don’t find yourself in debt again. Ask your counselor for educational
materials about budgeting, money management, and financial planning. The
credit counseling service may also offer free or low-cost classes on
controlling even your required expenses, like groceries. The more you
save on your expenses, the more you have to pay off those credit cards.
If you need to get your debt under control, and the DIY options aren’t
right for you, contact a credit counseling service for help finding the
best solution for you. You can get out of debt.
For more articles on credit card counseling, please visit:
http://www.bills.com/credit-card-counseling/
About The Author
Justin Narin has 5 years of experience as a financial adviser; his key
areas are loan consolidation, debt relief, mortgages etc. For more free
articles and advice visit http://www.Bills.com.
Thursday, June 18, 2009
Improve Your Financial Health by Spending Less and Increasing Your Income
Improve Your Financial Health by Spending Less and Increasing Your Income
by: Elizabeth Williams
In a tough economic climate such as the one we're living in, there is a
lot of advice about how to cut expenses or increase income. Both concepts
are good and can improve your financial situation, but combining the two
concepts and working together during a specific time period will catapult
your results. You'll be amazed at how possible it is to live on less
money and actually enjoy it more.
1. Think about shopping in a different way. Instead of mindlessly heading
to the grocery store each week, start questioning your purchasing habits.
Make a shopping list of necessities, use up what's in your pantry,
freezer or cabinets, and shop the sales with coupons to further your
savings. You'd be surprised how much you buy each shopping trip that
really isn't needed to make your meals. At first it will feel like a
major lifestyle change, but after a few weeks it will become habit and
you'll have taken great strides for reducing your expenses.
2. Look at your checkbook register carefully. This is a common place that
you can see all of your expenses and probably find areas you are
overspending, especially if you are a debit card user. It tells so much
about who you are and what you do with your money. If you see a number of
small purchases with the debit card for coffee and other treats, consider
giving yourself a weekly cash allowance and don't dip into the checking
account. That will keep you on track and avoid spending money that you
aren't even aware of how much it's adding up to at the end of the month.
3. Eliminate anything that isn't a necessity. This takes discipline and a
keen eye for what is really legitimate and that which can be trimmed out
to help with the budget. Basically, if it isn't a monthly living expense
like mortgage or rent, debt repayments or utility or food bills – it's
not a necessity. This may seem too strict, but taking a radical approach
just might be the thing that forces you to think differently about your
lifestyle and how you spend money. Give yourself a 30 day no spending
challenge – make sure you've got enough groceries to make it through a
month (or set aside a few dollars for dairy products and produce
throughout the month) and don't spend anything except for monthly
recurring living expenses and your existing debt repayments.
4. Pretend you've lost your job. What would you do if this happened? You
would reduce your expenses to the bare minimum right? Pretend you've lost
your job, but without the loss of income, you suddenly have more money
available. Start an emergency fund in case you really do lose your job
with the savings of living more frugally, or pay off credit card debt.
Look for balance transfer offers to save on interest and expenses for
debt you can't pay off immediately.
5. Increase income creatively. Declutter your house and sell things on
ebay or in yard sales. Bring items to consignment shops. Consider a
temporary part time job or a way to start another income source online or
otherwise.
If you just choose lowering expenses over income generation, the synergy
between the two is lost. Doing both will maximize your savings and give
you additional money to pay off debt and increase the money you have
saved.
About The Author
Elizabeth Williams, Editor-in-Chief for http://www.CreditCardFlyers.com
Need to transfer higher interest credit to a lower interest credit card
to save money? http://www.CreditCardFlyers.com is the leader in online balance transfer
offers. Compare balance transfers and find the one that meets your needs.
by: Elizabeth Williams
In a tough economic climate such as the one we're living in, there is a
lot of advice about how to cut expenses or increase income. Both concepts
are good and can improve your financial situation, but combining the two
concepts and working together during a specific time period will catapult
your results. You'll be amazed at how possible it is to live on less
money and actually enjoy it more.
1. Think about shopping in a different way. Instead of mindlessly heading
to the grocery store each week, start questioning your purchasing habits.
Make a shopping list of necessities, use up what's in your pantry,
freezer or cabinets, and shop the sales with coupons to further your
savings. You'd be surprised how much you buy each shopping trip that
really isn't needed to make your meals. At first it will feel like a
major lifestyle change, but after a few weeks it will become habit and
you'll have taken great strides for reducing your expenses.
2. Look at your checkbook register carefully. This is a common place that
you can see all of your expenses and probably find areas you are
overspending, especially if you are a debit card user. It tells so much
about who you are and what you do with your money. If you see a number of
small purchases with the debit card for coffee and other treats, consider
giving yourself a weekly cash allowance and don't dip into the checking
account. That will keep you on track and avoid spending money that you
aren't even aware of how much it's adding up to at the end of the month.
3. Eliminate anything that isn't a necessity. This takes discipline and a
keen eye for what is really legitimate and that which can be trimmed out
to help with the budget. Basically, if it isn't a monthly living expense
like mortgage or rent, debt repayments or utility or food bills – it's
not a necessity. This may seem too strict, but taking a radical approach
just might be the thing that forces you to think differently about your
lifestyle and how you spend money. Give yourself a 30 day no spending
challenge – make sure you've got enough groceries to make it through a
month (or set aside a few dollars for dairy products and produce
throughout the month) and don't spend anything except for monthly
recurring living expenses and your existing debt repayments.
4. Pretend you've lost your job. What would you do if this happened? You
would reduce your expenses to the bare minimum right? Pretend you've lost
your job, but without the loss of income, you suddenly have more money
available. Start an emergency fund in case you really do lose your job
with the savings of living more frugally, or pay off credit card debt.
Look for balance transfer offers to save on interest and expenses for
debt you can't pay off immediately.
5. Increase income creatively. Declutter your house and sell things on
ebay or in yard sales. Bring items to consignment shops. Consider a
temporary part time job or a way to start another income source online or
otherwise.
If you just choose lowering expenses over income generation, the synergy
between the two is lost. Doing both will maximize your savings and give
you additional money to pay off debt and increase the money you have
saved.
About The Author
Elizabeth Williams, Editor-in-Chief for http://www.CreditCardFlyers.com
Need to transfer higher interest credit to a lower interest credit card
to save money? http://www.CreditCardFlyers.com is the leader in online balance transfer
offers. Compare balance transfers and find the one that meets your needs.
Wednesday, June 17, 2009
What's Better 401(k) or Roth IRA?
What's Better 401(k) or Roth IRA?
by: Rocco Beatrice
One of the most frequently asked questions planners get about retirement
planning is what's better for retirement planning: a 401(k) or a Roth
IRA. The answer may not be as straightforward as it might seem.
WHAT ARE THE OPTIONS?
401(K)
Under section 401(k) of the IRS code, a 401(k) is an employer-sponsored
deferred contribution plan for retirement. In your workplace, you set up
a 401(k) plan with human resources and choose options within the defined
plan. Your employer takes money out of your paycheck prior to income
taxes being taken out and deposits this into your 401(k) plan. Some
employers even match your contributions. When you retire, you can decide
to withdraw money out of the 401(k), but those withdrawals are subject to
income tax when they are taken out 10,20, 30 years later. Currently,
there are no income limitations on who can contribute, but an individual
can contribute at most $15,500 to their 401(k) in 2008. $46,000 is the
maximum aggregate amount that can be contributed between employer and
employee in 2008.
ROTH IRA
Senator William Roth was the chief sponsor of this movement. A Roth IRA
is an individual retirement account independent from your employer that
you create directly with a custodian firm. After a Roth IRA account is
set up, these plans have a much wider investment selection typically, and
then directly deposit after-tax money from your checking account into the
Roth IRA. Then, after you turn 59 1/2 years old and have had the plan for
at least five years, you can withdraw from the account entirely tax free.
In 2009, the maximum you can contribute is $5,000 a year (unless you're
over 50). There is one big qualification: if you make more than $99,000
individually or $156,000 as a married couple, you cannot contribute the
full amount (and may not be able to contribute at all).
401(K) OR ROTH IRA: THE LARGEST DIFFERENCES (PROS & CONS)
The largest differences between the two plans are workplace
contributions, investment options/management, and taxes. Let's walk
through each feature.
1) Workplace contributions - Employers with a 401(k) retirement plan may
or may not match contributions made by an employee. For example, a 401(k)
program may offer a 50% match for every dollar the employee contributes
to a 401(k) up to 4% of the salary. Therefore, if the employee
contributes 4% of their salary to their 401(k), the employer also puts in
an extra 2% of your salary, effectively increasing your contribution by
50%. In short, employers that offer matching contributions to your 401(k)
should be revered. This typically trumps any other consideration
regarding the decision to contribute to a 401(k). It's free money, like a
year-end bonus that comes every 2 weeks - don't turn it down.
2) Investment options - With a 401(k), you're forced into whatever
management and investment options are offered to you by the plan your
employer offers which usually mean the investment choices are restrictive
and expensive. Things to watch out for in these investment plans are
mutual fund expense ratios and investment options. A Roth IRA is
extremely flexible and allows one to choose investment options - you even
pick the custodian you want to use. Roth IRAs offer an advantage with
regards to flexibility of investment choices, though if your 401(k)
offers solid options, this may not be a great advantage – but most
don't.
3) Taxes - This is really the tough one out of the three because it
involves a level of prediction of what the future holds for you. If you
think your income tax rate will be higher at the time of withdrawal than
it is currently, a Roth IRA is the better choice and will save you in the
long run.
How can someone expect to know future tax rates? Here are a few things to
consider:
Will my income grow significantly between now and retirement? If you
believe it will, you'll likely be in a higher tax bracket at that time,
which favors the Roth. If you feel that you are near your peak, you'll
probably be in the same bracket or lower, which could favor the 401(k).
Do I expect to be working in my retirement years? If you believe that you
will, you have a high chance of being in the same tax bracket or higher
than you are now. If the answer is no, likely your income will be lower.
Will the political landscape shift towards higher tax rates? It is easy
to speculate that with the expected budget deficits, tax rates will go
up, and that favors the Roth IRA. If you believe they will decline, that
would favor the 401(k).
401(K) OR ROTH IRA: SO WHAT SHOULD I DO?
If your employer offers 401(k) matching, always max it out. This is free
money.
The question really revolves around what to do with additional retirement
money. Given all the above factors, and also assuming you're young and
have many years of income growth ahead of you, a great option is a Roth
IRA.
Finally, there are other tax-free retirement options to consider such as
Roth IRA on Roids for slightly more sophisticated investors. It has all
the benefits of a Roth IRA with no restrictions and guaranteed principal.
Whichever you decide to pursue, by simply putting money away, you're
ahead of the game. Don't let the deliberation keep you from saving - if
all else fails, start making contributions immediately to one or the
other now and then finalize decisions later - you can always change your
mind in the future.
About The Author
Best IRA Rescue provides services on your IRA investments and traditional
IRA and will help you reduce your inherited and beneficiary independent
retirement account taxes in your estate assets. Roth on ROIDS is your
advanced Roth IRA retirement planning strategy and one of the best IRA
tax-savings strategies with benefits of a guaranteed death benefit,
guaranteed principal, tax-free growth, and tax-free distributions from
policy loans.
Contact us if you have any questions on your IRA retirement planning.
http://bestirarescue.com. Original
article:
http://roth-ira.bestirarescue.com/whats-better-401k-or-roth-ira.html
Boston, MA: 71 Commercial Street #150 Boston, MA 02109
California: 543 Victoria Ste. J, Costa Mesa, CA 92627
toll-free: 888-93ULTRA (888-938-5872)
tel: (508) 429-0011
fax: (508) 429-3034
Visit the author's web site at: http://bestirarescue.com
by: Rocco Beatrice
One of the most frequently asked questions planners get about retirement
planning is what's better for retirement planning: a 401(k) or a Roth
IRA. The answer may not be as straightforward as it might seem.
WHAT ARE THE OPTIONS?
401(K)
Under section 401(k) of the IRS code, a 401(k) is an employer-sponsored
deferred contribution plan for retirement. In your workplace, you set up
a 401(k) plan with human resources and choose options within the defined
plan. Your employer takes money out of your paycheck prior to income
taxes being taken out and deposits this into your 401(k) plan. Some
employers even match your contributions. When you retire, you can decide
to withdraw money out of the 401(k), but those withdrawals are subject to
income tax when they are taken out 10,20, 30 years later. Currently,
there are no income limitations on who can contribute, but an individual
can contribute at most $15,500 to their 401(k) in 2008. $46,000 is the
maximum aggregate amount that can be contributed between employer and
employee in 2008.
ROTH IRA
Senator William Roth was the chief sponsor of this movement. A Roth IRA
is an individual retirement account independent from your employer that
you create directly with a custodian firm. After a Roth IRA account is
set up, these plans have a much wider investment selection typically, and
then directly deposit after-tax money from your checking account into the
Roth IRA. Then, after you turn 59 1/2 years old and have had the plan for
at least five years, you can withdraw from the account entirely tax free.
In 2009, the maximum you can contribute is $5,000 a year (unless you're
over 50). There is one big qualification: if you make more than $99,000
individually or $156,000 as a married couple, you cannot contribute the
full amount (and may not be able to contribute at all).
401(K) OR ROTH IRA: THE LARGEST DIFFERENCES (PROS & CONS)
The largest differences between the two plans are workplace
contributions, investment options/management, and taxes. Let's walk
through each feature.
1) Workplace contributions - Employers with a 401(k) retirement plan may
or may not match contributions made by an employee. For example, a 401(k)
program may offer a 50% match for every dollar the employee contributes
to a 401(k) up to 4% of the salary. Therefore, if the employee
contributes 4% of their salary to their 401(k), the employer also puts in
an extra 2% of your salary, effectively increasing your contribution by
50%. In short, employers that offer matching contributions to your 401(k)
should be revered. This typically trumps any other consideration
regarding the decision to contribute to a 401(k). It's free money, like a
year-end bonus that comes every 2 weeks - don't turn it down.
2) Investment options - With a 401(k), you're forced into whatever
management and investment options are offered to you by the plan your
employer offers which usually mean the investment choices are restrictive
and expensive. Things to watch out for in these investment plans are
mutual fund expense ratios and investment options. A Roth IRA is
extremely flexible and allows one to choose investment options - you even
pick the custodian you want to use. Roth IRAs offer an advantage with
regards to flexibility of investment choices, though if your 401(k)
offers solid options, this may not be a great advantage – but most
don't.
3) Taxes - This is really the tough one out of the three because it
involves a level of prediction of what the future holds for you. If you
think your income tax rate will be higher at the time of withdrawal than
it is currently, a Roth IRA is the better choice and will save you in the
long run.
How can someone expect to know future tax rates? Here are a few things to
consider:
Will my income grow significantly between now and retirement? If you
believe it will, you'll likely be in a higher tax bracket at that time,
which favors the Roth. If you feel that you are near your peak, you'll
probably be in the same bracket or lower, which could favor the 401(k).
Do I expect to be working in my retirement years? If you believe that you
will, you have a high chance of being in the same tax bracket or higher
than you are now. If the answer is no, likely your income will be lower.
Will the political landscape shift towards higher tax rates? It is easy
to speculate that with the expected budget deficits, tax rates will go
up, and that favors the Roth IRA. If you believe they will decline, that
would favor the 401(k).
401(K) OR ROTH IRA: SO WHAT SHOULD I DO?
If your employer offers 401(k) matching, always max it out. This is free
money.
The question really revolves around what to do with additional retirement
money. Given all the above factors, and also assuming you're young and
have many years of income growth ahead of you, a great option is a Roth
IRA.
Finally, there are other tax-free retirement options to consider such as
Roth IRA on Roids for slightly more sophisticated investors. It has all
the benefits of a Roth IRA with no restrictions and guaranteed principal.
Whichever you decide to pursue, by simply putting money away, you're
ahead of the game. Don't let the deliberation keep you from saving - if
all else fails, start making contributions immediately to one or the
other now and then finalize decisions later - you can always change your
mind in the future.
About The Author
Best IRA Rescue provides services on your IRA investments and traditional
IRA and will help you reduce your inherited and beneficiary independent
retirement account taxes in your estate assets. Roth on ROIDS is your
advanced Roth IRA retirement planning strategy and one of the best IRA
tax-savings strategies with benefits of a guaranteed death benefit,
guaranteed principal, tax-free growth, and tax-free distributions from
policy loans.
Contact us if you have any questions on your IRA retirement planning.
http://bestirarescue.com. Original
article:
http://roth-ira.bestirarescue.com/whats-better-401k-or-roth-ira.html
Boston, MA: 71 Commercial Street #150 Boston, MA 02109
California: 543 Victoria Ste. J, Costa Mesa, CA 92627
toll-free: 888-93ULTRA (888-938-5872)
tel: (508) 429-0011
fax: (508) 429-3034
Visit the author's web site at: http://bestirarescue.com
Tuesday, June 16, 2009
Selling Secrets From The Farmer's Market
Selling Secrets From The Farmer's Market
by: Robert Schneider
I love going to the Farmer's Market. It’s a weekly ritual that forces me
out of my cave and into the sunlight. I get to stretch my legs, buy fresh
produce, and meet people in the heat of personal one-to-one sales.
There are about 15-30 vendors at the two markets close to my house. They
range from veggies and fruits to tamales and carrot cakes. Most f the
food is organic, locally grown and the guy selling it is the guy who
picked it. I feel so much closer to my food.
Okay, so I'm a little bit sentimental. But the Ralph's clerk just doesn't
give a rip about what they are selling. The market vendors are intimately
connected to their wares. And their attitudes and behaviors reflect that
connection. I think the closeness makes the food more satisfying.
As always, there are a few lessons to learn from this weekly trek. Most
of these folks are farmers and artists. They haven't been school in
selling. Most of the good things they do are instinctual rather than
purposeful. And many of the things they do wrong are a result of no
training. But ALL the lessons can help you.
Massive competition
The bulk of these vendors are selling produce. Potatoes, celery, carrots,
lettuce and peaches. It's all seasonal so everything changes throughout
the year. Which is a bummer because I wish avocados were always "in
season." I'm going to chat with God about that one.
A good half of the vendors at both markets are selling the same stuff.
Different farms, different crews, identical product. It's displayed the
same way, looks the same, and probably is grown the same. So, what makes
me choose one vendor of the other? Proximity. That one is 5 feet closer.
There is nothing distinctive about these vendors. Not even their charisma
(farmers, not performers). This is most businesses. You and ten other
companies are selling the same product to the same prospect. You set up
shop and hope that the guy walks closer to your stand.
Very few people are able to sell in a vacuum. The environment where you
have virtually no competition. Usually, if you have that, it's because
nobody wants your product. And if you do, it won't last for long.
Differentiate your product. Any of these vendors could do more to set
themselves apart. Instead of putting all their products on the table in a
pile, they could bundle them. Maybe create a "dinner" kit that has a
variety of items for this weeks menu. They could even provide yummy
recipes for the different items. Consultative selling for produce.
Perfect.
Of course, they can grow organic products and charge a higher price,
which some do. How about telling the story of the farm? Show pictures of
the facilities and the workers. Create a stronger bond between the
shopper and the creator. Give a feeling of involvement in the life of the
worker.
One of the fruit vendors gives me a couple extra pieces of fruit with my
purchase. I ALWAYS go to them while the place across the market is
wondering why nobody is over there.
What can you do to be different from the competition? You don't need to
change your product even. Just focus on changing the presentation.
Personal Relationships
Most of the vendors miss this. A few get it. The mystic of the market
experience is personally connecting with the people who make your food.
That's one of the reasons people enjoy shopping there.
The vendors that recognize me, acknowledge I'm a regular shopping and
show appreciation get my business. If they ask (and remember) my name
it's even better.
The fish guy stopped me a couple weeks ago and asked where I had been the
last couple weeks. He doesn't know my name, but he knows I'm a regular.
And he showed me that he notices if I'm not there. He values my business.
And he gets it.
People want these personal relationships. They crave them. They want an
authentic, connective buying experience in EVERY industry. What are you
doing to create that environment in your business? Social media? Events?
Community building? Consistent personal interactions?
Exclusivity
As I said before most of the vendors sell exactly the same thing. They
just hope that I walk by their booth first. The fish guy, the tamale man,
and the juice lady have an exclusive presence. They're it.
Sure, not as many people come to the market for those items. But these
folks can charge any price, get all the business.
You must develop an edge of exclusivity. If you can't change WHAT you
sell, change WHERE you sell, of WHO you sell to. There are other tamale
companies, but not at this market. This guy has essentially eliminated
any competition by NOT selling in the traditional stores. And oh those
tamales are tasty.
What if another vendor had fresh avocados or guacamole in the off-season.
How about selling a unique vegetable that no one else has? What other
kind of non-produce items would fit (art, groceries, etc)? How can you be
exclusive?
Pride
Most of the folks there are the ones that planted the seeds and harvested
the fruit. Part of your problem is you didn't make what you're selling
(in most cases). Your product was made in a sweat shop in China or a hick
in Alabama. You have very little connection to your product.
But pride sells. If you are proud, you'll be excited, confident and a
fervent evangelist. Those attitudes are contagious. I'll go back to the
tamale man. He yelled at me across the market to taste a sample (another
hint). After he reeled me in, he began spinning the story of how they
created these unique tamales. The ingredients are fresh, organic and
pure. They are hand crafted by his mother and daughter. They are the most
tasty I'll ever experience. Oh, and here's a convenient three pack.
My wife enjoyed the tamales. As far as I could tell, they were made of
chicken and corn—like every other tamale around. But I really like the
guy. And I need to eat. He gets my business over Ralph's.
Are you proud of your product. Can you talk about it like parent of a
newborn? Do you get a twinkle in your eye when people ask questions? Do
people have to tell you to STOP talking about your business? That's a
good sign, by the way.
The vendors that do well, are very intentional about how they sell. The
others are accidental. Sitting in their booth hoping that someone will
walk by and desperately need their carrots. Guess what…they don't. You
need to help reveal that need. Position your product as the only solution
to that need. And make an irresistible offer.
I encourage you to find a local farmer's market. Walk around for awhile.
Watch. Learn. And get some really great food. Experience a sales
environment where every dollar counts. It's a fantastic experience.
About The Author
~Robert Schneider - http://www.AccidentalSelling.com - http://www.VisionPipeline.com
I’m passionate about sales, marketing, and business strategy. Nothing
thrills me more than seeing people and businesses thrive. I spend a lot
of time thinking, observing, and writing about my experiences in the
trenches of the entrepreneurial battlefield. Hopefully, some of the stuff
I've learned can help you!
by: Robert Schneider
I love going to the Farmer's Market. It’s a weekly ritual that forces me
out of my cave and into the sunlight. I get to stretch my legs, buy fresh
produce, and meet people in the heat of personal one-to-one sales.
There are about 15-30 vendors at the two markets close to my house. They
range from veggies and fruits to tamales and carrot cakes. Most f the
food is organic, locally grown and the guy selling it is the guy who
picked it. I feel so much closer to my food.
Okay, so I'm a little bit sentimental. But the Ralph's clerk just doesn't
give a rip about what they are selling. The market vendors are intimately
connected to their wares. And their attitudes and behaviors reflect that
connection. I think the closeness makes the food more satisfying.
As always, there are a few lessons to learn from this weekly trek. Most
of these folks are farmers and artists. They haven't been school in
selling. Most of the good things they do are instinctual rather than
purposeful. And many of the things they do wrong are a result of no
training. But ALL the lessons can help you.
Massive competition
The bulk of these vendors are selling produce. Potatoes, celery, carrots,
lettuce and peaches. It's all seasonal so everything changes throughout
the year. Which is a bummer because I wish avocados were always "in
season." I'm going to chat with God about that one.
A good half of the vendors at both markets are selling the same stuff.
Different farms, different crews, identical product. It's displayed the
same way, looks the same, and probably is grown the same. So, what makes
me choose one vendor of the other? Proximity. That one is 5 feet closer.
There is nothing distinctive about these vendors. Not even their charisma
(farmers, not performers). This is most businesses. You and ten other
companies are selling the same product to the same prospect. You set up
shop and hope that the guy walks closer to your stand.
Very few people are able to sell in a vacuum. The environment where you
have virtually no competition. Usually, if you have that, it's because
nobody wants your product. And if you do, it won't last for long.
Differentiate your product. Any of these vendors could do more to set
themselves apart. Instead of putting all their products on the table in a
pile, they could bundle them. Maybe create a "dinner" kit that has a
variety of items for this weeks menu. They could even provide yummy
recipes for the different items. Consultative selling for produce.
Perfect.
Of course, they can grow organic products and charge a higher price,
which some do. How about telling the story of the farm? Show pictures of
the facilities and the workers. Create a stronger bond between the
shopper and the creator. Give a feeling of involvement in the life of the
worker.
One of the fruit vendors gives me a couple extra pieces of fruit with my
purchase. I ALWAYS go to them while the place across the market is
wondering why nobody is over there.
What can you do to be different from the competition? You don't need to
change your product even. Just focus on changing the presentation.
Personal Relationships
Most of the vendors miss this. A few get it. The mystic of the market
experience is personally connecting with the people who make your food.
That's one of the reasons people enjoy shopping there.
The vendors that recognize me, acknowledge I'm a regular shopping and
show appreciation get my business. If they ask (and remember) my name
it's even better.
The fish guy stopped me a couple weeks ago and asked where I had been the
last couple weeks. He doesn't know my name, but he knows I'm a regular.
And he showed me that he notices if I'm not there. He values my business.
And he gets it.
People want these personal relationships. They crave them. They want an
authentic, connective buying experience in EVERY industry. What are you
doing to create that environment in your business? Social media? Events?
Community building? Consistent personal interactions?
Exclusivity
As I said before most of the vendors sell exactly the same thing. They
just hope that I walk by their booth first. The fish guy, the tamale man,
and the juice lady have an exclusive presence. They're it.
Sure, not as many people come to the market for those items. But these
folks can charge any price, get all the business.
You must develop an edge of exclusivity. If you can't change WHAT you
sell, change WHERE you sell, of WHO you sell to. There are other tamale
companies, but not at this market. This guy has essentially eliminated
any competition by NOT selling in the traditional stores. And oh those
tamales are tasty.
What if another vendor had fresh avocados or guacamole in the off-season.
How about selling a unique vegetable that no one else has? What other
kind of non-produce items would fit (art, groceries, etc)? How can you be
exclusive?
Pride
Most of the folks there are the ones that planted the seeds and harvested
the fruit. Part of your problem is you didn't make what you're selling
(in most cases). Your product was made in a sweat shop in China or a hick
in Alabama. You have very little connection to your product.
But pride sells. If you are proud, you'll be excited, confident and a
fervent evangelist. Those attitudes are contagious. I'll go back to the
tamale man. He yelled at me across the market to taste a sample (another
hint). After he reeled me in, he began spinning the story of how they
created these unique tamales. The ingredients are fresh, organic and
pure. They are hand crafted by his mother and daughter. They are the most
tasty I'll ever experience. Oh, and here's a convenient three pack.
My wife enjoyed the tamales. As far as I could tell, they were made of
chicken and corn—like every other tamale around. But I really like the
guy. And I need to eat. He gets my business over Ralph's.
Are you proud of your product. Can you talk about it like parent of a
newborn? Do you get a twinkle in your eye when people ask questions? Do
people have to tell you to STOP talking about your business? That's a
good sign, by the way.
The vendors that do well, are very intentional about how they sell. The
others are accidental. Sitting in their booth hoping that someone will
walk by and desperately need their carrots. Guess what…they don't. You
need to help reveal that need. Position your product as the only solution
to that need. And make an irresistible offer.
I encourage you to find a local farmer's market. Walk around for awhile.
Watch. Learn. And get some really great food. Experience a sales
environment where every dollar counts. It's a fantastic experience.
About The Author
~Robert Schneider - http://www.AccidentalSelling.com - http://www.VisionPipeline.com
I’m passionate about sales, marketing, and business strategy. Nothing
thrills me more than seeing people and businesses thrive. I spend a lot
of time thinking, observing, and writing about my experiences in the
trenches of the entrepreneurial battlefield. Hopefully, some of the stuff
I've learned can help you!
Monday, June 15, 2009
Salaries - Just How Much Are You Worth?
Salaries - Just How Much Are You Worth?
by: Todd Bavol
Regardless of income, job, background or education, nearly everyone
thinks they are entitled to more money than they are getting. Salary
negotiation, however, has to be based on realistic expectations within
the current marketplace and, like investments, ‘what you are worth’ in an
employer’s eyes can go up or down.
At one time, trying to get hold of salary information proved quite a
difficult task. As employers are wont to pay as little as possible, while
still trying to keep their employees reasonably happy, they liked to
‘play their cards close to their chests’ for fear that expectations might
rise and their bank balances might suffer. Nowadays, however, it is much
easier to find this information because the Internet has effectively
empowered employees, who now know where to go to get this information.
While data naturally varies from site to site, there is a huge range of
anything from salary surveys to customized compensation analyses
available online. Here are just a few which will help to give you an idea
of what others in your line of work are receiving, or what it might be
reasonable to expect in a different field.
1. Salary.com allows you to input or select from a range of job titles to
find out the US national average for that particular role, such as
National Account Manager. Insert your zip code and you can learn what
percentage of all National Account Managers is employed in your region,
as well as the median salaries for the region. You can even check out the
educational levels within a profession and the variation in salaries
depending upon the size of the employer. By going a step further,
inputting a few straightforward details about your company, industry, job
title, pay and performance and education and the site will give you
access to your own ‘You vs Market’ Report, as well as providing you with
monthly updates on your salary ranges and notifications of any job
postings in your area.
2. Payscale.com is another site which provides accurate, real-time
reports based on your job title, location, education, skills and
experience. It gives you the opportunity to evaluate a job offer or
raise, evaluate your salary for your current job or check out the
salaries for a job that you may be considering for the future.
3. Indeed.com has a link to its own salaries page, providing the average
salaries for jobs according to zip code, as well as historical trends
within particular professions.
4. Vault.com holds a comprehensive range of salary surveys on major
companies, industries and professions, although it has to be said that
when I tried it, many of the links were unavailable and some information
is only available to Vault Gold Members.
5. America’s Career InfoNet at http://www.acinet.org (Link:
http://www.acinet.org) offers salary information on a wide range of
occupations, either nationally or by area. There are yearly and hourly
wage charts, as well as a 2007 wage table which is useful for comparative
purposes, for each occupation.
6. The United States Department of Labor’s Bureau of Labor Statistics
provides a wealth of current and historical surveys and statistical data,
as well as all that contained within its Occupational Outlook Handbook
and Career Guide to Industries.
Of course, especially in a tough economic climate, there may appear to be
a huge gulf between what you think you are worth and what employers are
willing to pay (see my post dated 20 April concerning how employers are
putting the squeeze on workers), but doing your research and going into
the marketplace with even a rough idea of what is reasonable is certainly
better than completely ‘outpricing’ or undervaluing yourself.
The other thing to remember is that salary ranges are all very well, but
the key to maximizing your compensation is about clearly demonstrating
the benefits that you can bring to an organization. A well-documented
performance which provides a prospective employer with quantitative
results and shows him how you solved problems or accomplished tasks is
pretty tough to argue with!
About The Author
I am committed to providing people quick access to job search and career
information. Over 20 years of experience in the HR and Career Coaching
field has given me a vast amount of information and resources to share
with you. My natural curiosity and desire to be on the leading edge of
EVERYTHING, brings value to you as a blog participant because I will keep
you informed of updates, changes and innovations that will assist you in
finding the job
http://www.integritycareertransitions.com/blog
by: Todd Bavol
Regardless of income, job, background or education, nearly everyone
thinks they are entitled to more money than they are getting. Salary
negotiation, however, has to be based on realistic expectations within
the current marketplace and, like investments, ‘what you are worth’ in an
employer’s eyes can go up or down.
At one time, trying to get hold of salary information proved quite a
difficult task. As employers are wont to pay as little as possible, while
still trying to keep their employees reasonably happy, they liked to
‘play their cards close to their chests’ for fear that expectations might
rise and their bank balances might suffer. Nowadays, however, it is much
easier to find this information because the Internet has effectively
empowered employees, who now know where to go to get this information.
While data naturally varies from site to site, there is a huge range of
anything from salary surveys to customized compensation analyses
available online. Here are just a few which will help to give you an idea
of what others in your line of work are receiving, or what it might be
reasonable to expect in a different field.
1. Salary.com allows you to input or select from a range of job titles to
find out the US national average for that particular role, such as
National Account Manager. Insert your zip code and you can learn what
percentage of all National Account Managers is employed in your region,
as well as the median salaries for the region. You can even check out the
educational levels within a profession and the variation in salaries
depending upon the size of the employer. By going a step further,
inputting a few straightforward details about your company, industry, job
title, pay and performance and education and the site will give you
access to your own ‘You vs Market’ Report, as well as providing you with
monthly updates on your salary ranges and notifications of any job
postings in your area.
2. Payscale.com is another site which provides accurate, real-time
reports based on your job title, location, education, skills and
experience. It gives you the opportunity to evaluate a job offer or
raise, evaluate your salary for your current job or check out the
salaries for a job that you may be considering for the future.
3. Indeed.com has a link to its own salaries page, providing the average
salaries for jobs according to zip code, as well as historical trends
within particular professions.
4. Vault.com holds a comprehensive range of salary surveys on major
companies, industries and professions, although it has to be said that
when I tried it, many of the links were unavailable and some information
is only available to Vault Gold Members.
5. America’s Career InfoNet at http://www.acinet.org (Link:
http://www.acinet.org) offers salary information on a wide range of
occupations, either nationally or by area. There are yearly and hourly
wage charts, as well as a 2007 wage table which is useful for comparative
purposes, for each occupation.
6. The United States Department of Labor’s Bureau of Labor Statistics
provides a wealth of current and historical surveys and statistical data,
as well as all that contained within its Occupational Outlook Handbook
and Career Guide to Industries.
Of course, especially in a tough economic climate, there may appear to be
a huge gulf between what you think you are worth and what employers are
willing to pay (see my post dated 20 April concerning how employers are
putting the squeeze on workers), but doing your research and going into
the marketplace with even a rough idea of what is reasonable is certainly
better than completely ‘outpricing’ or undervaluing yourself.
The other thing to remember is that salary ranges are all very well, but
the key to maximizing your compensation is about clearly demonstrating
the benefits that you can bring to an organization. A well-documented
performance which provides a prospective employer with quantitative
results and shows him how you solved problems or accomplished tasks is
pretty tough to argue with!
About The Author
I am committed to providing people quick access to job search and career
information. Over 20 years of experience in the HR and Career Coaching
field has given me a vast amount of information and resources to share
with you. My natural curiosity and desire to be on the leading edge of
EVERYTHING, brings value to you as a blog participant because I will keep
you informed of updates, changes and innovations that will assist you in
finding the job
http://www.integritycareertransitions.com/blog
Sunday, June 14, 2009
Improve Your Finances, Cut Back Where You Can
Improve Your Finances, Cut Back Where You Can
by: Bernz Jayma P.
Market changes have forced a lot of expenses to go up. If you notice,
your mortgage payments and other costs are not at the same level as
before. For the ordinary consumer, this means less purchasing power and
lower standard of living. Fortunately, you can fight back by knowing the
tips and tricks in saving money. We have compiled five tips that will
help you financially during tough economic times:
• Check your mortgage – most mortgage lenders offer an introductory
offer. If you took advantage of this, make sure that you know when it
will end so that you can remortgage in time. With the variable rate of as
much as 8.5%, no one wants to make even one late payment.
• Save on energy expenses – previously, consumers weren’t that concerned
about their energy bills. It was just something to be paid each month.
With today’s harsh condition though, every penny counts. If you make a
conscious effort to cut back, you might be surprised by the amount of
savings you can keep each month.
• Lower your grocery bills – it is easy to get tempted on the grocery. By
preparing a list and sticking to it, you can eliminate a lot of
unnecessary expenses. In addition, using coupons and buying items that
are really on sale can dramatically reduce your expenses.
• Phone calls – although landlines are no longer popular as before, some
people still rack up expensive monthly bills. If this is the case for
you, examine your pattern and implement strategies that will help lower
it. For example, getting an affordable package will help or you can make
less-urgent calls during off-peak hours. It is even better if you can
manage to call using the VoIP technology instead.
• Gym membership – it is true that investing for your health is good. In
fact, it is probably one of the best investment policies out there.
However, if you have an expensive gym membership that you barely use,
consider some alternatives. For example, look into the gyms that offer
pay-per-trip programs. That way, you only need to pay for the times when
you actually exercise.
These tips are just an overview of what you can do to save on your bills.
There are many more ways to save according to your unique circumstance.
In addition, combining effective investment practices with your saving
strategies will help you attain better financial health.
About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com.
by: Bernz Jayma P.
Market changes have forced a lot of expenses to go up. If you notice,
your mortgage payments and other costs are not at the same level as
before. For the ordinary consumer, this means less purchasing power and
lower standard of living. Fortunately, you can fight back by knowing the
tips and tricks in saving money. We have compiled five tips that will
help you financially during tough economic times:
• Check your mortgage – most mortgage lenders offer an introductory
offer. If you took advantage of this, make sure that you know when it
will end so that you can remortgage in time. With the variable rate of as
much as 8.5%, no one wants to make even one late payment.
• Save on energy expenses – previously, consumers weren’t that concerned
about their energy bills. It was just something to be paid each month.
With today’s harsh condition though, every penny counts. If you make a
conscious effort to cut back, you might be surprised by the amount of
savings you can keep each month.
• Lower your grocery bills – it is easy to get tempted on the grocery. By
preparing a list and sticking to it, you can eliminate a lot of
unnecessary expenses. In addition, using coupons and buying items that
are really on sale can dramatically reduce your expenses.
• Phone calls – although landlines are no longer popular as before, some
people still rack up expensive monthly bills. If this is the case for
you, examine your pattern and implement strategies that will help lower
it. For example, getting an affordable package will help or you can make
less-urgent calls during off-peak hours. It is even better if you can
manage to call using the VoIP technology instead.
• Gym membership – it is true that investing for your health is good. In
fact, it is probably one of the best investment policies out there.
However, if you have an expensive gym membership that you barely use,
consider some alternatives. For example, look into the gyms that offer
pay-per-trip programs. That way, you only need to pay for the times when
you actually exercise.
These tips are just an overview of what you can do to save on your bills.
There are many more ways to save according to your unique circumstance.
In addition, combining effective investment practices with your saving
strategies will help you attain better financial health.
About The Author
Author and entrepreneur Bernz Jayma P. is the owner of a financial blog,
dedicated to helping people expand their knowledge about their personal
finances. Learn up to date investing strategies and retirement planning
by visiting http://www.Invesmint.com.
Saturday, June 13, 2009
Loan Modification – The Lucas Law Way
Loan Modification – The Lucas Law Way
by: Bobby Presley
Foreclosures continue to increase in numbers as the economy continues to
go down. More and more homeowners are having difficulty keeping their
homes. Some homeowners try to have their loans modified by their lenders
only to be frustrated.
What is Loan Modification?
Loan modification involves the adjustment and renegotiation of the terms
and conditions of an existing mortgage contract allowing for more
affordable payment rates that will fit your budget. If an account is
delinquent, loan modification brings your account to current status. It
is not the same as refinancing. You do not need good credit standing as a
prerequisite for the terms to be modified. Change of terms is dependent
on the type of loan obtained. The most problematic loan is the adjustable
rate mortgage. You can have this changed to the fixed-rate loan. A
fixed-rate loan is better because you can adjust your rate to better suit
your budget. Lower rate means lower payments. Loan terms can also be
extended, for example from 20 to 30 years.
Do You Need a Lawyer?
Not necessarily. But having the services of a good attorney to represent
you during negotiation proves to be more advantageous. It will
dramatically increase the possibility of success in the loan modification
process. A lawyer can provide a more detailed and careful analysis of the
situation. Better equipped with knowledge on the different options open
to you, the lawyer can come to a better understanding with the lender
concerning your property and financial condition. When negotiation fails,
the appropriate legal action will be filed.
What Can the Lucas Law Center Do For You?
The Lucas Law Center is committed to keeping you in your homes. It
renegotiates existing mortgage contracts of clients with lenders. The
Lucas Law Center can successfully process a loan modification when the
initial teaser rate has expired. The teaser rate may be extended to allow
the client to keep the house, while the lender still collects the monthly
dues. This benefits both client and lender.
The Lucas Law Center can get to the right people in the lender’s office.
Its lawyers talk directly to the lender’s attorneys and key people in the
organization, people who can make decisions. When negotiations fail and
complaints are valid, it does not hesitate to file suit in court.
It is dedicated to protect the client’s most valuable asset—the
home. Visit http://lucaslawcenter.com for more info.
About The Author
Bobby Presley was born in New York City on April 3, 1975. Currently
working as an entrepreneur and salesman, he sometimes spends his free
time by writting aticles related to law as a way to offer services to
readers as well as broaden his knowledge in term of law.
by: Bobby Presley
Foreclosures continue to increase in numbers as the economy continues to
go down. More and more homeowners are having difficulty keeping their
homes. Some homeowners try to have their loans modified by their lenders
only to be frustrated.
What is Loan Modification?
Loan modification involves the adjustment and renegotiation of the terms
and conditions of an existing mortgage contract allowing for more
affordable payment rates that will fit your budget. If an account is
delinquent, loan modification brings your account to current status. It
is not the same as refinancing. You do not need good credit standing as a
prerequisite for the terms to be modified. Change of terms is dependent
on the type of loan obtained. The most problematic loan is the adjustable
rate mortgage. You can have this changed to the fixed-rate loan. A
fixed-rate loan is better because you can adjust your rate to better suit
your budget. Lower rate means lower payments. Loan terms can also be
extended, for example from 20 to 30 years.
Do You Need a Lawyer?
Not necessarily. But having the services of a good attorney to represent
you during negotiation proves to be more advantageous. It will
dramatically increase the possibility of success in the loan modification
process. A lawyer can provide a more detailed and careful analysis of the
situation. Better equipped with knowledge on the different options open
to you, the lawyer can come to a better understanding with the lender
concerning your property and financial condition. When negotiation fails,
the appropriate legal action will be filed.
What Can the Lucas Law Center Do For You?
The Lucas Law Center is committed to keeping you in your homes. It
renegotiates existing mortgage contracts of clients with lenders. The
Lucas Law Center can successfully process a loan modification when the
initial teaser rate has expired. The teaser rate may be extended to allow
the client to keep the house, while the lender still collects the monthly
dues. This benefits both client and lender.
The Lucas Law Center can get to the right people in the lender’s office.
Its lawyers talk directly to the lender’s attorneys and key people in the
organization, people who can make decisions. When negotiations fail and
complaints are valid, it does not hesitate to file suit in court.
It is dedicated to protect the client’s most valuable asset—the
home. Visit http://lucaslawcenter.com for more info.
About The Author
Bobby Presley was born in New York City on April 3, 1975. Currently
working as an entrepreneur and salesman, he sometimes spends his free
time by writting aticles related to law as a way to offer services to
readers as well as broaden his knowledge in term of law.
Friday, June 12, 2009
Top Ten List of Eligible VA Loan Purposes
Top Ten List of Eligible VA Loan Purposes
by: Bruce Charles
VA is authorized by law to guarantee loans made to eligible veterans only
for the following purposes:
1. You can purchase or construct a residence to be owned and occupied by
the veteran as a home. The loan may include simultaneous purchase of the
land on which the residence is situated or will be situated.
2. Loans may also be guaranteed for the construction of a residence on
land already owned by the veteran (A portion of the loan may be used to
refinance a purchase money mortgage or sales contract for the purchase of
the land, subject to reasonable value requirements.)
3. The residential property may not consist of more than four family
units and one business unit except in the case of certain joint loans.
4. To refinance an existing VA-guaranteed or direct loan for the purpose
of a lower interest rate.
5. To refinance an existing mortgage or other indebtedness secured by a
lien of record on a residence owned and occupied by the veteran as a home.
6. To repair, alter, or improve a residence owned by the veteran and
occupied as a home.
7. To simultaneously purchase and improve a home.
8. To improve a residence owned and occupied by the veteran as the
veteran’s home through the installation of residential energy
improvements. These energy efficiency improvement loans can be made in
conjunction with any type of VA purchase or refinancing loan.
9. To purchase a single family unit in a residential condo development
approved by VA.
10. To purchase a farm residence to be owned and occupied by the veteran
as a home. If the loan includes the purchase of farmland, the farmland is
appraised at its residential value only.
About The Author
www.freevaloan.com is a FREE comprehensive website for our military and veterans to come for information regarding VA loans but most importantly, make good on the promise to provide visitors access to Certified VA
Lenders that charge NO FEES. Visit today and find out how serious we are
about helping our veterans save thousands of dollars.
by: Bruce Charles
VA is authorized by law to guarantee loans made to eligible veterans only
for the following purposes:
1. You can purchase or construct a residence to be owned and occupied by
the veteran as a home. The loan may include simultaneous purchase of the
land on which the residence is situated or will be situated.
2. Loans may also be guaranteed for the construction of a residence on
land already owned by the veteran (A portion of the loan may be used to
refinance a purchase money mortgage or sales contract for the purchase of
the land, subject to reasonable value requirements.)
3. The residential property may not consist of more than four family
units and one business unit except in the case of certain joint loans.
4. To refinance an existing VA-guaranteed or direct loan for the purpose
of a lower interest rate.
5. To refinance an existing mortgage or other indebtedness secured by a
lien of record on a residence owned and occupied by the veteran as a home.
6. To repair, alter, or improve a residence owned by the veteran and
occupied as a home.
7. To simultaneously purchase and improve a home.
8. To improve a residence owned and occupied by the veteran as the
veteran’s home through the installation of residential energy
improvements. These energy efficiency improvement loans can be made in
conjunction with any type of VA purchase or refinancing loan.
9. To purchase a single family unit in a residential condo development
approved by VA.
10. To purchase a farm residence to be owned and occupied by the veteran
as a home. If the loan includes the purchase of farmland, the farmland is
appraised at its residential value only.
About The Author
www.freevaloan.com is a FREE comprehensive website for our military and veterans to come for information regarding VA loans but most importantly, make good on the promise to provide visitors access to Certified VA
Lenders that charge NO FEES. Visit today and find out how serious we are
about helping our veterans save thousands of dollars.
Thursday, June 11, 2009
Why the Bank Doesn’t Want Your House
Why the Bank Doesn’t Want Your House
by: Karla Jo Helms
An Insider’s View of Why It’s Best to Work With Your Lender – For You AND
the Bank – When You’re in Danger of Losing Your House
Once upon a time, collateral was king when it came to borrowing money.
And your home was typically the crown jewel of your collateral assets.
Home ownership gave you instant credibility to a lender who could quickly
pull up your payment history and deduce from past payment schedules that,
yes, you were a reliable borrower and, even if something went south – a
lost job, a divorce, an illness in the family – with the house as
collateral, the bank would never lose money on your loan.
But now the market is saturated with foreclosed homes, short sales and
defaulted home loans. The value of property in some of the most saturated
areas continues to go down and has yet to hit rock bottom, leaving both
homeowners and bank owners in a precarious position.
According to Robert Sumner, CEO of First National Bank of Pasco (FNB
Pasco) near Tampa, Florida, “Everything is down right now; not only are
we making fewer home loans but we are seeing fewer home improvement loans
as well.”
Sumner clarifies: “Those who still have their homes are simply trying to
ride out the storm and waiting until the market goes back up; they don’t
want to throw ‘good money after bad’ by doing costly home improvements if
they’re not going to get their value back. Unfortunately, others are
losing their homes altogether.”
Sumner is referring, of course, to the staggering amount of foreclosed
properties currently flooding the market. And he should know; Florida
features one of the highest numbers of foreclosures in the country right
now. Nationally, according to CNNMoney.com, “More than 1.5 million homes
are seriously delinquent and close to foreclosure.” What’s more, a new
study finds that “…more than 20% of U.S. homeowners – about 20 million
residences – owe more than their homes are worth.” [Source: CNNMoney.com]
Not wanting to become part of the problem but preferring to remain part
of the solution, now more than ever banks are eager to stay out of the
foreclosure business and do what they do best: banking. In other words,
your bank doesn’t want your house. Rather, they’d prefer to work with you
so that you keep the house.
Banks don’t want your home for two basic reasons.
First, the bank is not in the real estate business. They don’t want to
filter precious assets of time, personnel and energy into inspecting the
residence, listing your home, making concessions or worrying about upkeep.
Further, who will mow the lawn and prune the shrubs once you’ve
foreclosed on the property? Either the bank spends money to hire someone
to do it or lets it alone to become not only an eyesore to the community
but a liability on the already-competitive housing market. Either way,
the bank loses money.
Secondly, when the bank takes over the house the price is drastically
reduced. According to Sumner, “Once the message is out that this is a
‘bank-owned’ property, both savvy realtors and buyers know that they
suddenly have the upper hand; they know the bank wants to unload this
property and they now have a much stronger bargaining chip. We typically
experience a 30% loss on the value of the property the minute we assume
ownership.”
What can you do to avoid missing mortgage payments or, barring that,
avoid foreclosure? Sumner lists three simple steps you can take to work
with your lender to avoid your own financial meltdown:
1.) Reach out before it’s too late: If your income has been affected or
your debts have simply snowballed to the point where paying your mortgage
this (or even next) month is looking less and less likely, don’t bury
your head in the sand but reach out to your lender and start
communicating with them, sooner rather than later. They can’t help you if
they don’t know you’re in trouble.
2.) Come prepared: The bank will need information to help you restructure
your payments, refinance the loan or possibly delay a payment or two to
help you with a current situation. Be sure to bring the latest
information on your income, how it’s been affected, your current bills
and debt load. Calling the bank beforehand (or visiting its website) will
help you gather a specific list for each vendor.
3.) Prepare for the worst: Not every bank can help in every situation.
Short of foreclosure, you will still need to pay your mortgage on time
and Sumner warns you shouldn’t expect miracles. However, rather than take
over your home the bank would rather work with you, realistically, to
help you avoid foreclosure.
Sumner warns there is no simple fix when budgets are tight and your
mortgage continues to be your biggest expenditure per month. However, he
stresses, “avoiding the issue is never the answer.”
About The Author
After handling the PR for an Inc 500 company for several years Karla Jo
Helms was ready to launch out on her own allowing her to bring her unique
take on the world of PR to businesses both large and small. “Public
Relations is a powerful tool that can garner wide acceptance and delve
into arenas that marketing cannot touch,” says Karla Jo, PR Strategist
and Published Author. Helms got her start creating and implementing PR
Strategies for entrepreneurs, which helped her develop a keen eye for how
to hone in on the best use of PR and technology to increase the Return On
Investment of one’s marketing dollars. Her theory on how attaining
critical mass by utilizing all areas of PR and Marketing in today's world
allows her to put together complete strategies for clients that attain
measurable results. A background in sales, business management and media
relations has given her the well-rounded understanding of how to harness
the power of PR to communicate to diverse groups of people...the end
result being a wider sphere of influence and the invaluable commodity of
goodwill garnered on a broad basis for her clients.
Visit the author's web site at: http://www.jotopr.com
by: Karla Jo Helms
An Insider’s View of Why It’s Best to Work With Your Lender – For You AND
the Bank – When You’re in Danger of Losing Your House
Once upon a time, collateral was king when it came to borrowing money.
And your home was typically the crown jewel of your collateral assets.
Home ownership gave you instant credibility to a lender who could quickly
pull up your payment history and deduce from past payment schedules that,
yes, you were a reliable borrower and, even if something went south – a
lost job, a divorce, an illness in the family – with the house as
collateral, the bank would never lose money on your loan.
But now the market is saturated with foreclosed homes, short sales and
defaulted home loans. The value of property in some of the most saturated
areas continues to go down and has yet to hit rock bottom, leaving both
homeowners and bank owners in a precarious position.
According to Robert Sumner, CEO of First National Bank of Pasco (FNB
Pasco) near Tampa, Florida, “Everything is down right now; not only are
we making fewer home loans but we are seeing fewer home improvement loans
as well.”
Sumner clarifies: “Those who still have their homes are simply trying to
ride out the storm and waiting until the market goes back up; they don’t
want to throw ‘good money after bad’ by doing costly home improvements if
they’re not going to get their value back. Unfortunately, others are
losing their homes altogether.”
Sumner is referring, of course, to the staggering amount of foreclosed
properties currently flooding the market. And he should know; Florida
features one of the highest numbers of foreclosures in the country right
now. Nationally, according to CNNMoney.com, “More than 1.5 million homes
are seriously delinquent and close to foreclosure.” What’s more, a new
study finds that “…more than 20% of U.S. homeowners – about 20 million
residences – owe more than their homes are worth.” [Source: CNNMoney.com]
Not wanting to become part of the problem but preferring to remain part
of the solution, now more than ever banks are eager to stay out of the
foreclosure business and do what they do best: banking. In other words,
your bank doesn’t want your house. Rather, they’d prefer to work with you
so that you keep the house.
Banks don’t want your home for two basic reasons.
First, the bank is not in the real estate business. They don’t want to
filter precious assets of time, personnel and energy into inspecting the
residence, listing your home, making concessions or worrying about upkeep.
Further, who will mow the lawn and prune the shrubs once you’ve
foreclosed on the property? Either the bank spends money to hire someone
to do it or lets it alone to become not only an eyesore to the community
but a liability on the already-competitive housing market. Either way,
the bank loses money.
Secondly, when the bank takes over the house the price is drastically
reduced. According to Sumner, “Once the message is out that this is a
‘bank-owned’ property, both savvy realtors and buyers know that they
suddenly have the upper hand; they know the bank wants to unload this
property and they now have a much stronger bargaining chip. We typically
experience a 30% loss on the value of the property the minute we assume
ownership.”
What can you do to avoid missing mortgage payments or, barring that,
avoid foreclosure? Sumner lists three simple steps you can take to work
with your lender to avoid your own financial meltdown:
1.) Reach out before it’s too late: If your income has been affected or
your debts have simply snowballed to the point where paying your mortgage
this (or even next) month is looking less and less likely, don’t bury
your head in the sand but reach out to your lender and start
communicating with them, sooner rather than later. They can’t help you if
they don’t know you’re in trouble.
2.) Come prepared: The bank will need information to help you restructure
your payments, refinance the loan or possibly delay a payment or two to
help you with a current situation. Be sure to bring the latest
information on your income, how it’s been affected, your current bills
and debt load. Calling the bank beforehand (or visiting its website) will
help you gather a specific list for each vendor.
3.) Prepare for the worst: Not every bank can help in every situation.
Short of foreclosure, you will still need to pay your mortgage on time
and Sumner warns you shouldn’t expect miracles. However, rather than take
over your home the bank would rather work with you, realistically, to
help you avoid foreclosure.
Sumner warns there is no simple fix when budgets are tight and your
mortgage continues to be your biggest expenditure per month. However, he
stresses, “avoiding the issue is never the answer.”
About The Author
After handling the PR for an Inc 500 company for several years Karla Jo
Helms was ready to launch out on her own allowing her to bring her unique
take on the world of PR to businesses both large and small. “Public
Relations is a powerful tool that can garner wide acceptance and delve
into arenas that marketing cannot touch,” says Karla Jo, PR Strategist
and Published Author. Helms got her start creating and implementing PR
Strategies for entrepreneurs, which helped her develop a keen eye for how
to hone in on the best use of PR and technology to increase the Return On
Investment of one’s marketing dollars. Her theory on how attaining
critical mass by utilizing all areas of PR and Marketing in today's world
allows her to put together complete strategies for clients that attain
measurable results. A background in sales, business management and media
relations has given her the well-rounded understanding of how to harness
the power of PR to communicate to diverse groups of people...the end
result being a wider sphere of influence and the invaluable commodity of
goodwill garnered on a broad basis for her clients.
Visit the author's web site at: http://www.jotopr.com
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