First and foremost, this is a warning to both job seekers and employers… It is in no way a recommendation that anyone use fraudulent references.Several websites have begun to offer phony reference services for job seekers. At first glance, this may look like a good idea to overcome spotty work history. However, it is a risky move. Every employer has – or should have – a policy of immediate termination for lying on resumes and applications.One of these services, Career Excuse, encourages candidates to create their own work history, tailored to their desired field. For a fee and ongoing subscription, the website will provide references, work history verification and other fictitious documents to support the falsehoods in a candidate’s resume. Disturbingly enough, they even offer phony funeral excuses.However, these services do not guarantee that they will stand up to a rigorous background check. In fact, many of these services carry a disclaimer that they will assume that the information provided by the job seeker is true. This creates a reflective action back on the job seeker, thereby absolving the fake reference provider. In other words, they state that their information is only as good as the statements created by the candidates.To avoid this trap, a thorough HR department will confirm work histories, criminal checks and education verification through their own resources, not just the phone numbers provided by the candidates. And they have the legal right to do so.When a job seeker signs either an online or paper application, he is signing a legal document. It is not merely a formality, especially when employers include certifications like the one below to gain permission for the background check:”I, _____ (the candidate), hereby certify that the facts set forth in the above employment application are true and complete to the best of my knowledge. I authorize XYZ Company to verify their accuracy and to obtain reference information on my work performance. I hereby release XYZ Company from any and all liability of whatever kind and nature which, at any time, could result from obtaining and having an employment decision based on such information. I understand that, if employed, falsified statements of any kind or omissions of facts called for on this application shall be considered sufficient basis for dismissal.”This means that the candidate is granting the potential employer the right to conduct a thorough background check. Any discrepancies can cost the candidate the job offer or even employment if he has already been hired before the falsehood is discovered.In addition to checking references, the employer may require employment verification, education verification, criminal background checks and drug screening. A credit check may be run in some situations, specifically when the potential employee will have any contact with financial information or actual funds.Considering the severe penalties, it is not recommended that any candidate provide knowingly fraudulent materials or references to get a job. Eventually, the truth will catch up in brutal and legal ways.(c) 2011 Donna Shannon
Private Education Loans Should Be Carefully Compared Before Borrowing
For many families, borrowing is one of the key components of financing a college education. To that end, a family may utilize one of the many education loan options that are available, such as private education loan programs available from lenders.When a family borrows an education loan, they essentially rely on future income sources to pay college costs, as they will be repaying the education loan back in the future. Since loans need to be paid back, the loan repayment will be an added responsibility in the future and one that needs to be taken very seriously. Loans are not free and actually can be very expensive. It is imperative that if you do borrow a private education loan that you be a smart borrower, as decisions that you make now will impact your life style and options in the future. Students should first maximize loan borrowing through the Federal Direct Stafford Loan Programs, if eligible, which have favorable terms, various repayment options, and typically are the lowest cost loans.Private education loans, also referred to as alternative loans, are credit based loans offered by lenders, including banks, credit unions, state agencies, and private companies. It is important to understand the role of credit in the private loan process, as private loans are not automatic financing options. Private loan programs use a borrower’s and co-borrower’s (if applicable) credit worthiness as a determinant when considering applicants for private loan eligibility. A borrower’s credit worthiness not only determines if they are approved for the loan, but has a bearing on the interest rate assigned to the loan. Ultimately, when talking about private loans, your credit rating is a very important contributing factor in the private loan review process.Although specific lender underwriting guidelines are proprietary information and unpublished to the consumer, it is known that the strength of the applicant’s credit is a large factor. With that said, it is a worthwhile exercise to review your personal credit standing regardless, as establishing and maintaining good credit is vital for many reasons. In general, credit is the basis of most consumer borrowing, thus being proactive with credit is a positive practice.Before borrowing a private education loan, you should carefully compare the terms, repayment details, and total cost of the loan, including interest rate and fees. Loan terms and repayment details vary greatly among lenders and between loan programs, so do be sure to compare loan details carefully and ask the lender many questions when reviewing loan programs. Important information to inquire about includes whether the rate is fixed or variable, if the loan incurs any fees, if there is a prepayment penalty, what the length of the repayment term is, and if there are any deferment or forbearance provisions available. Loan applicants will be provided with a disclosure notice with the financing details of the loan which provides a good opportunity for the borrower to review the minute details of the loan prior to committing. Just be sure to ask many questions and compare several loan programs before committing to a specific. Check out the website Financial Aid Sense for a complete guide on how to compare private loan programs.
Seller Financing – Better For the Seller Than the Buyer
One of the most misunderstood topics in real estate is “Seller Financing”. This is probably because the topic of seller financing is usually discussed from the perspective of the buyer. And in most cases the buyer is a beginning investor who is trying to get a “good deal” or they are starting to buy property with “no money down”. But all too frequently the deal falls apart and the stories explode about the problems of seller financing.It is time to unfold the power of seller financing and the simple secrets and techniques to keeping the transaction a positive experience for everyone. While most people can explain the benefits of seller financing for a buyer what most people don’t understand is that seller financing is actually better for the seller than it is for the buyer. Here are several ways that the seller can benefit from offering seller financing on their property:1.Timing – The seller has complete control over the timing of the sale when they are offering the financing. The seller can determine just how long it will be before the sale closes. The seller can determine how long they can stay in the house after the sale closes. The seller can determine exactly how long the buyer must pay on the mortgage and when they have to refinance and pay off the loan. And by offering seller financing they can get their home sold more quickly because of the appeal of seller financing to the market in general.2.Higher Sales Price – Market value is based upon “supply and demand.” Most sellers are not offering seller financing so there is a limited supply but there is a huge demand. As a result, the price of the home in higher than the other comparable homes in the neighborhood. Also, because the traditional costs of mortgages are no longer in the equation you can collect that money too (as much as 3-5% of the value of the home) as part of the sales price.3.Cash at Closing – There is nothing that says a seller must finance the entire purchase price of the property. The seller can require a down payment which will provide some cash at closing. (There are more advanced way to collect cash at closing which go way beyond a down payment but can still result in a “zero-down” for the buyer.)4.Payments over Time – When the seller finances the equity in their property, those payments become a steady stream of income for the seller. This becomes a fantastic income stream for someone who may be down-sizing or who does not want their property for any reason (this is especially great on investment properties).5.High Return on Investment – Considering the equity as an investment, the payments received from seller financing are better than one can expect from a savings account, CD or mutual fund. Even if the interest rate on the seller finance mortgage is small, the principle balance of the investment is larger than the seller could have received through a traditional sale.6.Difficult Properties Sell Easily – Sellers who have properties that are difficult to sell can sell them with seller financing. Again, the demand for any property increases as more people are qualified to buy them.7.Collateralization – The seller controls the terms of the mortgage and can require additional collateral to secure the loan. This additional collateral can come in many ways. Of course the seller can require a large down payment. However, some other options include additional co-signers on the loan or equity in a 2nd property. If the buyer owns another home or an investor own additional property, the seller can attach their seller finance note to the other property. This will make it more painful for the buyer to default because the seller can claim the additional property in the event of a foreclosure.In selling a property it is the owner who has control over the entire transaction when they offer seller financing. The seller controls all the aspects of the sell including the timing, the price, the terms, their return on investment, and security and protection of their equity. Since the seller has the flexibility to craft a sell the meet all of their needs, why would you sell it any other way?How would you like to offer seller financing but remove all personal liability for the property after the sale? How would you like to increase your income from your rental property and get rid of ALL property management? How would you like to get paid twice what your property is worth? How would you like to sell your investment property and never pay capital gains taxes? Stay tuned for some practical examples of seller financing tips and techniques that will keep you out of trouble when you sell your property.