Client P went to all the bank-sponsored seminars during 2008 and 2009 and submitted their forms for a modification with Hope Now, and various other non profits that were touted by the government and the news to help them lower their mortgage payment. Nothing happened. When they were referred to 360 Group we started with the Pre Audit questionnaire and found several reasons why they couldn’t get anywhere.
Upon review of their portfolio several things where made clear.
1. Both self employed, their P & L showed that together they earned too much money to qualify for a modification.
2. They were not deducting any expenses from their home based businesses.
3. Then other items surfaced. They had 3 life insurance policies that all overlapped. They were spending over $300 per month on double coverage without even realizing it.
Client P called 360 Group when they became late on their mortgage payment and the lender helped themselves to the money in their savings account. They thought that taking money from their account without written approval was illegal. It is not! Banks have a variety of small print that allows them to “help themselves” to your cash if you miss a payment on a loan or even a credit card.
One of the best things you can do as a consumer in this country is to NOT bank and borrow with the same institution. Further, you need to know the details about the affiliates these firms share information with. For example, Bank of America owns over 14 different companies of a different name. This fact alone impacts millions of people each year. We all get a small brochure in the mail twice a year with the tiny 2 point font you need a magnifying glass to read. This is the affiliated business relationship fine print.
Over the next six months 360 Group began a course to help the P’s with several structural plans so that they “could” actually qualify for that modification. Here’s what we did.
- Helped them organize their life insurance to one main plan, dropping the overlapping plan and saving them $300 per month.
- Showed them how to save receipts and use legitimate business expense deductions for their business which lowered their combined income.
- The lower income then enabled them to qualify for a modification to save their home.Often, time needs to be spent organizing and planning BEFORE a modification is submitted or a Short Sale is executed. If you know someone who needs advice on what their options are, we’re always here to help. Contact us today.