Financial Services Reviews

Loan modification is still the #1 best alternative to foreclosure. But getting one through requires some little-known information and strategy. Youve got to know what the banks are looking for, and how to fill out the paperwork so you not only qualify for loan modification, but get in on those unheard of two and three percent interest rates that can make your monthly payment go down by as much as 40 – 50%!

Banks are allowing some pretty unbelievable workouts with unheard of low rates. Has there ever been a time when you got a 2% interest rate! That is happening everyday to some people. Will you ever have this opportunity to lock in these silly low rates again? Probably not, so take your loan modification paperwork VERY seriously and dont talk yourself out of your own modification.

If youre one of the millions who make up 1 in 7 homes in foreclosure or default, then what youre about to learn can stop your foreclosure and substantially reduce your monthly mortgage payment giving you the financial relief you need to stay afloat and stabilize your life with lower mortgage payments now and over the long run.

The main problem – and what stands between you and a modified lower monthly payment has been perfectly summed up in this recent Los Angeles Times article

Getting loans through the system to the modification finish line is tough for banks and loan servicers, says Douglas Potolsky, Chase Home Lending senior vice president. The main obstacle, he and other banks say, is borrowers who dont properly complete their paperwork.

The trick is to know how to fill out the darn paperwork so you dont talk yourself right out of your own modification!

90% of the loan modification requests are not going through because people fill out their paperwork to their DISADVANTAGE. They either disqualify themselves because they show they make too much, or too little, to afford the NEW modified payment thats the lower one thats based on the 2% to 4% rates that bank can give you in modification, but wont if your financials and other paperwork pieces qualify for this payment.

90% of the people who fill out the paperwork for loan modification do not know how the banks are looking at their numbers and story. Banks actually have a couple of formulas they work by when calculating your financials in relation to your hardship letter, pay stubs, checking account statements, and past 2 years of income tax returns. You must make all of these pieces jibe together for one consistent financial hardship story.

Basically this is how you want to fill out the main two pieces of paperwork for loan modification the hardship letter and financial worksheet:

1.Hardship letter: Be consistent and make sure the hardship story and the numbers you provide on your financial worksheet make one strong, consistent picture. In about 1 1 pages, make sure you give the following information in this sequence:
a.Include your loan number at the top
b.ASK for a loan modification in the first sentence
c.Make it evident that you are capable of earning consistent income, but right now, your hardship is making your mortgage – and life – unaffordable. Tell them you need help
d.Explain with emotion all of the reasons youre in hardship. Banks are especially looking for things like reduced or lost income from one or more household members, increased expenses that were unexpected or unavoidable, a medical problem that left you sick or disabled and from earning income, and/or caused increased expenses, etc.
e.ASK FOR WHAT YOU WANT ask for a low interest rate (2%-3%) for the first 5 years while you get back on your feet; and then ask that they stretch your loan term out to 40 years; and that the remaining 35 years be at 4% to 5%. Use an amortization calculator (search online) and calculate what your payment would be at 2%, 3%, 4%, and 5%. Tell them that you CAN afford payments based on a 2%, 3% right now, and that later, because of better work projections or opportunities or whatever reason that you can later afford a payment based on 4% or 5%. I always ask for 2% for the first 5 years and then 4% to 5% for the rest of a 40 year loan when I help people fill out their paperwork.
f.Close with a sentence or two that tells them you want to keep you and your family in your home (mention of kids if you have them helps) and that you want to avoid foreclosure and further damage to your credit.

2.Financial worksheet/Personal budget: Get this form from your bank. Your modification will go through faster and cleaner is you use the banks form instead of making your own Excel spreadsheet. One of the banks formulas I was telling you about comes into play when they review your financial worksheet. This is where most people blow their chances for getting a modification. The banks are looking to see that you can afford the new, modified payment the one based on 2% or 3% with about $200 to $300 left over. This is a fine line between showing that you dont make too much or too little to afford the modified payment. This is how you get to that balancing point:
a.For now, where you see the line to write in your monthly mortgage expense, do not put in your current payment. Put in the modified payment youre going after the one that you calculated with the amortization calculator at 2% (or 3%) or somewhere in between. This is a temporary placeholder for the purpose of getting the sum of this payment plus all your other monthly expenses minus your monthly income to come out to about $200 – $300 left over. Then, before you fax in this worksheet with your other paperwork, make sure you erase that lower mortgage payment that served as a placeholder to make all of your numbers jibe, fill in your actual, current mortgage payment. Or make a copy of the blank worksheet like I do then its clean as a whistle.
b.Write in your income and all of your other expenses. The trick is using some of the categories that are not easily tracked like your monthly food, gas, and credit card payments that you can increase or decrease if you need to get your end balance to be at that $200 – $300 left over after Income minus Expenses. Realize that they will be cross-checking the numbers on your financial worksheet with your checking account statements (you submit the past two months checking and savings bank statements). Realize too that if you have a bunch of money (over $2,000 or $3,000 sitting in savings), that the bank will see this as a place you can pull from and pay them.

Most people don’t understand what’s behind the banks strategy and that they are indeed debt collectors! They want to make sure you can pay or theyre not going to give you a new loan (modified loan). People don’t realize what they should ask for, what to say … and what not to say … or how to talk to their bank to get the right story on record. Because they dont have this critical insight, many are losing out on the best loan modification opportunity of the century.

I help and counsel people through loan modification, and have an eBook that outlines steps to modification and virtually every other option you can take to avoid foreclosure in my book called, How to Survive Foreclosure or Avoid it Altogether.
Learn more at

How to Survive your Foreclosure or Avoid it Altogether

During a forum back in 2010, then president of Citi Personal Banking and Wealth Management said that America would never have experienced the 2008 financial crisis if it was the Lehman Sisters and not the Lehman Brothers.

That being said, the financial services industry is still undoubtedly a man’s world. Based on a report by the Bureau of Labor Statistics, only 31% of financial advisors in the US are women, which means almost 8 out of 10 financial brokers and consultants are men. This is contraindicative to the recent findings of a research done by Pershing, a financial consultancy firm under the BNY Mellon group, which revealed a projected rise in demand for women financial advisors.

From the standpoint of financial advisor recruiters, this is a simple economic situation – high demand and low supply equals a lot of opportunities. If you’re a woman in the financial industry, this is a great time to look for better jobs and greener pastures. In doing so, it pays to know what your main advantages are over your male counterparts. This would allow you to strongly position yourself during job interviews.

So, what exactly are your key advantages as a female financial advisor?

Women Understands Women

Women-owned businesses account to trillions of dollars per year. According to the same report from Pershings, female investors are more likely to hire financial consultants than their male counterparts – 46% versus 36%. The study also shows that female clients are more likely to develop a long-term and loyal relationship with a consulting firm. Not coincidentally, most of these women entrepreneurs prefer to hire female advisors. Why do you think is that? For one, it is a consensus in the industry that women clients require more intensive consulting and they take more time than female clients. This is because female investors are more detail-oriented.

Also, the number of wealthy women who are not necessarily investors or entrepreneurs is rising. These are those who just got divorced, was recently widowed, etc. They have real money and they need help in managing their finances. According to financial services recruiters, this new breed of rich women are more comfortable working with female consultants because they are more patient, are typically good listeners and wouldn’t mind hearing about the personal stories of their clients.

Women Generate Clients in More Varied Ways than Men

According to the 2012 Fidelity Broker and Advisor Sentiment survey, 71% of female wealth managers attend industry gatherings and in-person seminars. This is significantly higher compared to the 36% of men who attend such networking events. The report says nothing conclusive about this information but it’s easy to draw an educated hypothesis – women develop more connections and therefore, more opportunities to acquire new clients. Also, women are more open to clients who are looking beyond the traditional investment platforms.

Experts also observe that female financial advisors are craftier in promoting their expertise. Carol Pepper, the woman behind the New York-based investment firm Pepper International wrote a book to promote her services. Chapin Hill Advisors president Kathy Boyle often gives speeches to create thought leadership for the firm. She also use blogging as a tool to reach potential clients.

Women have made and are continuously making their mark in the financial services arena and though they are still outnumbered, it wouldn’t be surprising if they equal or surpass the number of financial advisors in the future.