TALK WORD

If you have children from two or more marriages and want to protect them all, please, please go see a lawyer now. And if you have more than $600,000 in assets, want to protect all your children, and don’t go to see a lawyer, you are being tremendously irresponsible to yourself, your money, and your children.
In the case of my friend’s family, let’s imagine that Pop and Mom do manage to get their act together and, with the aid of a bypass trust, leave the business to Tim and Daniel in the most respectful way possible. But Tim and Daniel don’t follow suit; they keep their wills. Let’s say Tim dies first, the business goes to Daniel, and Daniel’s will says everything goes to Christine, who in turn has a will leaving everything to her children. What about my friend She? What about Tim’s own children? Did he mean to disinherit them? Did he intend for Daniel’s kids to get the whole business and his to get nothing? That’s not what he meant, but that’s what could happen. Or if Daniel dies first, did he mean for the same scenario to happen to his children? No, of course not. Both brothers need to set up revocable living trusts themselves to protect their families, as well as each other.

What can you do to stop foreclosure? A lot more than you think is possible. Put yourself in the shoes of the bank and propose terms that are not beyond the confines of reason. Ask the lender for all possible concessions. You will never know what you are going to get until you ask. A negotiation strategy should be in place before you start talking to your banker or lender. In the end, it is all a matter of negotiation and renegotiation. Hiding from your lender will not help. You must open the communication lines quickly. Don’t be afraid to talk to them. They won’t bite. They are probably more eager to talk to you than vice-versa. All you have to do is ask. As Jack Canfield and Mark Victor Hansen wrote in the last chapter of their inspirational The Aladdin Factor (1995): “Our final wish for you is that you ask, ask, ask until all your dreams come true.” Prepare to renegotiate the terms of your loan agreement. The most popular method of loan restructuring is the extension of the period of payment that will result in the reduction of the debtor’s monthly installments. This plan is quite acceptable to the lenders because they get paid in full in the end with more money in their pockets as a result of the inclusion of additional interest payments. Some banks may agree to extend the period of loan installments way beyond the term originally stated in the agreement to allow them to recoup their losses. Some banks ask for more collateral or security before they grant any term extensions.
Another proposal to the lender will come in the form of a request to defer the payment of the principal if the loan is not a new one. For fresh loans, the debtor will arguably receive fewer benefits from this concession because the payments are mostly applied to the interest of the loan, not the principal. As a bold move, you may ask and in some cases get a reduction or waiver of interest and penalties. Some banks may give you up to a 5% discount on the interest. Use your persuasive powers by painting a graver picture to reduce the interest. Ask the creditor for a substantial discount on the balance of the credit if you could come out with the money to immediately pay the entire balance of the loan. Penalties are easier to waive than interest. Lenders must earn something for the service of lending their money to you.