Methods for Purchasing Forclosure Homes

Have you decided on the forclosure home that you want, and are you ready to buy? There are many methods that will help you get ready as you proceed with the purchase for your forclosure home.

Rules for Bidding on Forclosure Homes:

If the home you have chosen to look at is a bank forclosure, the bidding rules are pretty easy. You will want to get in touch with your real estate agent or the listing agent and let them know that you are interested in the forclosure home. After that, you will want to do a couple of other things.

1. You will need a pre approval letter from your mortgage loan officer. The letter need only be the amount you plan to offer and no more.

2. You can then ask your real estate agent to forward the letter to the listing agent expressing intent to purchase the forclosure home. This letter is different than a contract because the only things it includes are general topics such as the price, suggested closing date and financing.

3. When the letter is received by the listing agent, it will from there be forwarded to the bank that is holding the forclosure property. This process will take around 7 to 10 days, as banks proceed cautiously and very slowly.

What Should Your Bid Be?

At this point, there are two different concerns. The first is what to bid on a forclosure home, and the second is what to bid to win the home without bidding too much and over paying. This is where the water gets a little choppy. Banks are different from HUD or VA because they determine the price they are willing to accept on a per property basis. The VA and HUD have preset levels. You should never try to underbid what the bank owes. When the home has been on the market for three to six months, you might be able to get away with this.

You shouldn't worry about bidding below the amount mortgaged for a forclosure home. You might be able to swing a 10 to 15 percent discount, but the bank may not be even that flexible when it comes to the price of the forclosure home. Offering anything less than full price can result in you losing the property to another purchaser.

Brock is a fairly new investor in real estate focusing his efforts on investing in home forclosures. His blog details all his adventures in purchasing forclosure houses, fixing them up, and reselling them for healthy profit margins. http://forclosurehomes.weebly.com

Wealth Creation - Kiss it or Say Goodbye!

I never thought that I would find myself using the old Kiss cliché ("Keep it Short and Simple" or "Keep it Simple Stupid). I've always preferred Einstein's approach, "Everything should be made as simple as possible, but no simpler."

Yet wealth creating is simple. Incredibly and utterly simple. When creating wealth becomes complicated it's time to stop and take measure. It's clearly time to get back on the track of simplicity before one gets derailed.

Wealth creating is not about "running a business" "making money" "investing" "earning an income" "having a great job" and the like. Far too complicated and time consuming for the serious wealth creator. There are, as you know, tens of thousands of books written on those subjects and guess what? The great majority of people still struggle financially through life. We all know of couples who have "great jobs" and are earning "high incomes" and making "heaps of money" yet still struggle to make ends meet at the end of each month. Commitments and expenses seem to sadistically expand to the level of the money available to meet them.

And of course we all know of people who were on very low incomes who end up fabulously wealthy.

So by all means keep at your job or business and retain the status quo - but quite separately, begin your new part time wealth creation program ASAP.

One of the biggest hurdles is that people at some level have the desire to be wealthy but do not know exactly what "wealth creation" is. Those whose real estate or investments rose in value, know that they are "wealthier" but see the obvious element of luck in the fact that prices rose opportunistically. Others coming into the same market, are "on a wing and a prayer" hoping that prices will continue to rise so they too can benefit.

Without knowing precisely what wealth creation is, it is impossible to become "wealth" conscious.

So let's get Wealth Creation in focus and keep it simple.

Please consider:

A business has a gross annual income and from that total pays all overheads. From the net income or profit (if any) tax is payable. Now the amount that is left, can either be used to create wealth - or it can be spent on non-wealth creating products or services - for example, spending the surplus on a vacation etc.

Similarly a working couple has a combined gross annual income and from that total pays all domestic overheads. Now the amount that is left, can either be used to create wealth - or it can be spent on non-wealth creating products or services - for example, spending the surplus on a vacation etc.

So you can readily observe from the above two examples that there is a difference between "business" and wealth creation and "income" and wealth creation.

Wealth, put simply, is the total realizable value of one's total material assets. That is if you have antiques worth $10,000.00 or gold worth $10,000.00 or acme widgets worth $10,000.00, your wealth is $10,000.00. Obvious and simple, yes? It's so simple it's a no-brainer!

Wealth Creation is NOW whilst investing is about planning (and praying) for the future. A wealth creator wants to multiply the value of his or her realizable wealth total NOW!

That is, if those antiques or widgets are genuinely worth $10,000.00 the wealth creator will buy them at $5,000.00 or less. At the point of purchase, at least $5,000.00 is added to the wealth total. Unlike the speculator or the investor, a Wealth Creator does not buy on the hope or the gamble that the purchase will rise in value. "Yikes - no way! Keep it simple - the golden rainbow of tomorrow may not come. I want my added wealth now - the minute I pay I intend being wealthier. Let others get their crystal ball out and start praying."

Note that:

A wealth creator spends money and becomes wealthier.

The average punter spends money and becomes poorer.

The speculator gambles.

The investor hopes and prays.

Who of the above has the most fun?

And having fun is part of wealth creation. For example, Bob and June, part time wealth creators in England, keep in touch with me regularly. After reading my book, they used the money they each spend on each other as Christmas and birthday gifts to begin their wealth program. Instead of buying each other a present for $100.00 and knowing that as soon as they leave the shop the value of that present is probably about $30.00 maximum and thereafter declines in value to become a worthless keepsake, they became wealth conscious. He loves early watercolors and she collects estate jewellery. So off to the auctions and sales they went. Once they became wealth conscious and in a wealth program, when they spend that $100.00 on an item, the item is usually worth $300.00.

They've been at it now for four and a half years. The two birthday and two Christmas presents added up. They buy and sell when ever possible. Today they have art and jewellery worth tens of thousands of pounds and their wealth total is going up at an astronomical rate. Even more important they have immense fun in the process.

Business proprietors have every right to have all the hassles of working hard, paying the overheads and hopefully making a profit. The wealth creator takes a short cut through the whole tedious process and goes straight for the jugular - WEALTH CREATION.

To a wealth creator liquidating a part of one's wealth gives the opportunity to increase the overall wealth total. In stark contrast, the business proprietor needs turnover to pay the overheads.

How ever much money you have available for your part time wealth program, two points are clearly obvious. (1) Your money is always limited - so you can afford to be extremely choosy. And (2) because you are always multiplying your wealth by at least 100%, it doesn't matter how little you have to start with.

Multiply $20 in wealth only 15 times and you are up around the $250,000.00 mark. After that the sky is the limit.

That is why a single wage family following a wealth program and who are able to live within their means, can end up far wealthier than a multiple large income family.

So it's your decision - when it comes to wealth creation - Kiss it or Say Goodbye!

Charles Goodwin is the author of the highly rated book ?The Secrets Of Wealth Creation Revealed? (available as a paperback or e-book.) Read more free articles by Charles Goodwin at http://www.wealth-creators-club.com or his Blog ?The Esoteric Charles Goodwin? at http://charlesgoodwin.blogspot.com

Traveling To America? New ESTA Registration Mandated January 2009

For years, visitors from certain foreign countries have been able to travel to America without first getting a formal Visa sticker placed in their passport. Implemented in 1998, the "Visa Waiver Program" (VWP) has allowed for visitors of several countries to come to America for tourism or business purposes for up to 90 days without getting a Visa put in their passport. During 2007, more than 15 million visitors from VWP countries arrived in the United States.

As of January 12, 2009 America's new ESTA program requires Visa Waiver Program visitors coming to the U.S. for tourist or business purposes via a plane or ship to "register" online before entering the United States to see if they pose a law enforcement or security risk to the U.S. ESTA is not required for land crossings. Officials are asking that the ESTA registration be done at least 72 hours prior to leaving, but theoretically it is possible to register at the last minute. An ESTA Travel Authorization is free, valid for 2 years, and valid for multiple entries.

Here are some Frequently Asked Questions (FAQs) for ESTA Travel Authorization:

What Countries Are in the Visa Waiver Program?

Andorra, Austria, Australia, Belgium, Brunei, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Monaco, The Netherlands, New Zealand, Norway, Portugal, San Marino, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, and the United Kingdom.

Where Do I Apply for an ESTA Travel Authorization?

A website, operated by the American government, is where you register for ESTA: esta.cbp.dhs.gov. The ESTA information you submit via the computer is compared with certain American law enforcement databases and then either approved or denied. Foreign travelers will not be able to submit ESTA applications at American airports after arriving or at a U.S. Embassy in their country.

What if I Don't Have Plans to Travel to the U.S. Yet?

VWP travelers are not required to have specific plans to travel to the United States before they apply for an ESTA Travel Authorization. As soon as VWP travelers begin to plan a trip to visit the U.S., they are encouraged to apply for travel authorization through the ESTA website. Applicants are not required to update their destination addresses or itineraries if they change after their ESTA Travel Authorization has been granted.

Does the ESTA Travel Authorization Guarantee Entry to the U.S.?

An ESTA Travel Authorization only authorizes a traveler to board an airline or ship for travel to the U.S. under the Visa Waiver Program. After they arrive, travelers who obtained an ESTA Travel Authorization may still be denied entry (also called "admission") at a U.S. port of entry, such as an American airport. An approved ESTA is not a guarantee of admissibility at an American airport. In all cases, the American airport officers make the final determination whether a foreign traveler can enter the U.S. or not. You still have to establish to the satisfaction of the inspecting officer that you are entitled to be admitted to the U.S. under the Visa Waiver Program.

Can I Change My Travel Itinerary?

It is possible to change an itinerary on an existing ESTA Travel Authorization; ESTA is designed so that you can update parts of it at any time. Travelers who did not get an ESTA approval may be denied boarding by the airlines, experience delayed processing, or be denied admission to the U.S. at the American airport.

What If I Already Have a Valid B1/B2 Visitor Visa?

While the ESTA Travel Authorization is completed online with no interview, there are Visas that require a U.S. Embassy interview. The Visa process has separate procedures, which generally require an appointment, travel to a U.S. Embassy, an interview with a Consular Officer, processing time, and the payment of an application fee. If a foreign national already went to the U.S. Embassy and has a valid B1/B2 Visitor Visa pasted in their passport it is not necessary to get an ESTA Travel Authorization because the traveler will be entering with a B1/B2 Visitor Visa and not through the Visa Waiver Program. Keep in mind that an approved ESTA Travel Authorization is not a Visa.

Can I Re-Apply for an ESTA Travel Authorization if Denied?

Yes, but you must wait at least 10 days to reapply and your circumstances must have changed. Unless there is a change in a substantive fact, re-application will not change the result. Keep in mind that applying for an ESTA Travel Authorization with false information can cause a foreign national to be permanently barred from ever entering America. The ESTA system is designed to try to prevent individuals from changing and manipulating an ESTA entry until they receive an approval.

What If I am Denied an ESTA Travel Authorization and Have No Changed Circumstances?

There are three types of responses to an ESTA application; approved, pending or travel not authorized (denied). Applicants who receive a "pending" response are advised to check the website 72 hours later. Applicants who are denied will be required to go to a U.S. Embassy to apply for a formal nonimmigrant visa, such as a B1/B2 Visa, which may take months.

Can a Traveler Find Out the Reason Why an ESTA Application was Denied?

The U.S. Dept. of Homeland Security has stated that travelers may contact the DHS Travel Redress Inquiry Program (DHS TRIP at dhs.gov) but there are no guarantees that information about a denial will be divulged. U.S. Embassies and Consulates are not required to provide details about an ESTA denial nor resolve the issue that caused the ESTA denial.

What If I Have a Criminal Record?

Only those qualified to travel under the VWP are eligible to pre-register through ESTA. Persons who have been arrested and/or convicted are generally not eligible for VWP and probably require a formal Visa, such as a B1/B2 Visa, to travel to America. If a foreign national has received tickets for speeding (which don't usually result in an arrest or conviction) they are probably still eligible for the VWP and ESTA. If a foreign traveler has been denied entry into or deported from the U.S., they require a formal Visa.

Do Any Other Countries Have a Similar Program?

Australia has a program called the Electronic Travel Authority (ETA) that mandates travelers to submit an ETA application electronically through a website requesting permission to travel to Australia. Airlines may refuse to accept passengers who do not have either an approved ETA or Visa to enter Australia.

How Long Will the ESTA Application Data be Stored? Who Can Access It?

The ESTA Travel Authorization is valid for two years or until the traveler's passport expires, whichever comes first. The American government will maintain the information for at least 15 years to allow retrieval of the information for law enforcement, national security, or investigatory purposes. Information submitted through ESTA can also be shared with any U.S. government organization.

What Information Does the Airlines Get?

Airlines will receive confirmation of a passenger's ESTA status visa the "Advance Passenger Information System" (APIS) which shows whether the ESTA authorization has been granted for a Visa Waiver Program traveler. It is recommended that the traveler print out the ESTA application approval in order to maintain a record of their ESTA application number and to have confirmation of their ESTA status.

What About Children?

Accompanied and unaccompanied children, regardless of age, are required to obtain an independent ESTA Travel Authorization.

What if a Mistake was Made on the ESTA Application?

The ESTA website will ask applicants to review their application before submitting it. Also, there is an update function for certain information such as email address, telephone number, or flight information. If an applicant makes a mistake that cannot be "updated," he will need to submit a new ESTA application.

What if I Only Have a Connecting Flight Through the U.S.?

Visa Waiver Program visitors who have a connecting flight in the U.S. are required to either have ESTA Travel Authorization or a Visa from a U.S. Embassy in their passport to travel through the U.S. even for a one hour stop. If a traveler is only planning to stop in the U.S. en route to another country, the traveler should enter the words "In Transit" and his final destination in the address lines under the heading "Address While In The United States" on the ESTA application.

What Are the Questions on the ESTA Travel Authorization Application?

The traveler must provide (in English) biographical data including name, birth date, country of citizenship, country of residence, email address, sex, telephone number, passport information, destination address in the U.S., travel information (round trip airline ticket, flight number and city where you are boarding) as well as questions regarding communicable diseases (chancroid, gonorrhea, granuloma inquinale, HIV, leprosy, lymphogranuloma venereum, syphilis [active], tuberculosis [active], and others), physical or mental disorders, drug addiction problems, arrests, convictions, past history of visa cancellation or denial, and prior deportations from the U.S. The traveler will also be asked whether they are seeking work in the U.S., have ever been deported or tried to get a visa by fraud or misrepresentation. The traveler will be asked if they have ever detained a child of a U.S. Citizen granted custody of the child, and whether they have ever asserted immunity from prosecution.

Do I Select "Business" or "Pleasure (Tourist) at the Airport Port of Entry?

After the ESTA Travel Authorization is granted, the foreign traveler will be interviewed by government officers at the first American airport they land. The officer will ask what the foreign traveler will be doing in America and the questioning can take up to four hours in a detained setting called "secondary inspection." The officer may ask the traveler "what else are you doing in America?" repeatedly to try to get "the real" answer. If the traveler is only going to be a tourist, they are not allowed to do any business, including meeting with any attorneys, applying for a bank account, meeting with real estate agents, or other business consulting activities. Even though the traveler is going to conduct just one business meeting while in America, they are required to report it and enter as a business visitor. The business visitor is allowed to participate in tourist activities, but the tourist visitor is not allowed to participate in any business activities. Therefore, if any business might be conducted while in America, it is best to tell the government officers about it at the airport to avoid being accused of lying, put immediately on a plane back to your home country, and barred from America for life.

What Else Do Can the Airport Officers Make Me Prove After I Land?

The airport officers will ask the traveler proof of a foreign residence (address on foreign driver's license), whether their intention is to depart at the end of the visit (round trip airline ticket), whether the traveler has a job (letter, paystub, business card) and family in their home country, (marriage certificate, childrens' birth certificates), and whether the traveler has the money to travel around America (bank statement or credit cards with bank letter showing credit limit). The airport officers are also required to ask where the traveler will stay in America (hotel reservations or friends/relatives' homes) and have been known to pick up the phone to verify all of the aforementioned information.

Can I Be Searched in the American Airport? Am I Entitled to Legal Representation?

While being interviewed at the American airport, all luggage (even locked bags) can be searched, as well as the traveler's body and his/her cell phone (including text messages and phone numbers) and laptop (including hard drive). The officers may "google" a traveler's name and check out their myspace, facebook or hyves pages. The traveler is not allowed to be represented by an attorney or even call their attorney while in "secondary inspection." Bathroom visits, water and food may be limited, so it is best to prepare for such an occasion while still on the plane before landing.

Do I Still Have to Go Through the "US-VISIT" Program at the American Airport?

Foreign travelers arriving at American airports and seaports must still be photographed and fingerprinted every time they enter the U.S.

Who Should I Ask For Help to Fill Out the ESTA Application?

The information a traveler provides on the ESTA application can remain in their file with U.S. authorities for a minimum of 15 years - probably longer. If a foreign traveler has some questions about how to answer the questions so as not to be permanently barred from America, it would be prudent to them to pay for a legal consultation with an American Immigration Attorney who is a member of the American Immigration Lawyers Association (AILA). Beware of unauthorized private websites that offer ESTA application assistance for $49.99 - they are usually not authorized to practice immigration law and are asking travelers to pay for a copy of the application questions, which are free on the dhs.gov website.

If I Am Denied the ESTA Travel Authorization Will it Effect My Ability to Obtain a Visa at the U.S. Embassy?

When the ESTA Travel Authorization is denied, the foreign traveler must make an appointment at a U.S. Embassy in their country to apply for a formal Visa. The U.S. Embassy is operated by the U.S. Department of State and there are no expedited procedures for those who have been denied ESTA Travel Authorization. Because the ESTA program is so new, it is impossible to predict how badly a denial of the ESTA Travel Authorization will impact a traveler's application for a Visa at a U.S. Embassy or impact their future travel to America in general. American Immigration Attorneys are in close contact with their foreign clients and will share the denial information with each other starting in January 2009. Currently there are no government policies regulating this area of the law, or opportunities to appeal a denial.

When Is the a "New" ESTA Travel Authorization Required?

A new ESTA Travel Authorization is required during the two years if (1) the traveler is issued a new passport (2) the traveler changes his name (3) the traveler changes his or her gender (4) the traveler's country of citizenship changes or (5) the circumstances underlying the traveler's previous responses to any of the ESTA application questions requiring a "yes" or "no" response have changed (such as a new arrest).

Can an American Immigration Attorney, Travel Agent or Employer Fill Out the ESTA Application?

A third party, such as a relative, travel agent or American Immigration Attorney, is permitted to submit an ESTA application on behalf of a VWP traveler. Be aware that the traveler is still responsible under the law for the answers submitted on his or her behalf by a third party.

Over 68,000 travelers have already voluntarily registered by using the ESTA online system in the last few months. Applicants are reminded to obtain a new "e-passport" which has an integrated computer chip capable of storing biographic information from the data page, as well as other biometric information, when registering with ESTA.

The author is Attorney Danielle Nelisse, owner of the Law Offices of Danielle Nelisse. She has been practicing U.S. immigration law since 1999. She specializes in U.S. citizenship, lawful permanent residence through marriage, and work visas. She has a staff of translators who speak German, French, Spanish, Dutch, Russian, Chinese, Japanese and other languages.

http://www.immigrationworkvisa.com

Investing in Bank Forclosures - Advantages and Disadvantages

When bank forclosures process begins, three real estate investing opportunities are created; the Default phase, the Auction phase, and the REO phase. Below, we will discuss the advantages and the disadvantages of each of the three opportunities.

Purchasing Homes before Bank Foreclosures

When you purchase a home before the forclosure process has begun, you are able to work directly with the owner of the home and sometimes even the lender. You are able to try for a win/win situation. The homeowner wins because they make the sale and avoid forclosure and you win because you are able to get the property at a large reduction.

In order to accomplish a successful purchases before bank forclosures, the following 7 steps are recommended:

1. Find homes that are in default on the loans.

2. Compare homes and choose which one to pursue.

3. Inspect the property.

4. Figure out what the property owner needs.

5. Figure out the market value of the property, repair costs, and potential sales price and profit.

6. Negotiate with the owner and the lender to come up with a decision.

7. Close on the property, fix it up and sell it again quickly.

Advantages - If done correctly, this can be a great investment. The discounts from market value are usually around 20 to 35 percent. A low down payment is possible if it's structured properly, and you have plenty of time to check out the properties. You are able to make unique and flexible sales agreements.

Disadvantages - Sometimes it can be hard to get in touch with the property owner. You will have competition to purchase the home, and the court house research can be difficult. You may also have to negotiate with the lien holders.

Auction Purchases

Purchasing homes at an auction can be great. It is also dangerous. You are able to purchase the home as the highest bidder, and the process moves quickly. When you are purchasing something at an auction, you have to compete against the lender and other people who are looking to invest. Before purchasing at the auction, most people research the properties before the sale date, go after realistic opportunities, calculate their potential for profit and amounts, determine a good bid price and then go to the auction to bid.

Advantages - This is a great way to find moderate to large discounts. It's possible to save anywhere from 35 to 45 off of market values and you can earn an excellent return on investment. It's possible to really hit the jackpot.

Disadvantages - The auctions are often postponed or delayed. Being able to inspect the property is rare. In truth, a title search should be performed on the house and this is usually costly. You may have to provide a check for ten percent of the purchase amount within days or weeks from the auction. If you don't do your research, it may result in a loss.

Purchasing REOs

Some think that the easiest way to purchase a foreclosed home is to buy an REO. A 'Real Estate Owned' occurs when a lender takes a property back to gain possession and cut its losses. They normally do not want to keep the property because it is not in the real estate business, and so they normally move the property quickly.

Advantages - The lender is the lien holder, so there is always a clear title, and that saves a lot of time. Not to mention expenses and worries about purchasing forclosure homes. The property taxes which were in arrears have normally been paid and the property may have been repaired to be within acceptable standards. Sometimes though, they just leave the repairs to the buyer and offer a discount.

Disadvantages - There are low to no risks with this method, however the rewards can be pretty low as well. You may save anywhere from 5 percent to 15 percent off of market value. You can save up to 25 percent or more if you are knowledgeable and know how.

This method of investing in forclosure properties can bring excellent profits. All three forclosure opportunities contain rewards and risks. Doing your homework before you buy is a must.

Brock is a fairly new investor in real estate focusing his efforts on investing in home forclosures. His blog details all his adventures in purchasing bank forclosures and forclosure homes, fixing them up, and reselling them for healthy profit margins.

Why We Are Losing Working Farms

The Situation

Today's farmer faces unique challenges which threaten to continue the trend of developing our working farms without consideration of sustainable farming practices. These challenges arise from trends in several (seemingly unrelated) areas, which combine in unexpected ways to produce unintended results.

Growth to accommodate the needs of a growing population naturally seeks as a solution the path of least economic and regulatory resistance. In many cases, this solution manifests itself in the development of available farms located close to population centers. To the farm owner, who is often land rich but cash poor, this is an option, as existing federal tax laws practically guarantee that the farm must eventually be sold and developed to pay the requisite estate taxes.

One seemingly obvious solution to preserve our farms and promote sustainable farming would be more regulatory policy. Wetlands and floodplains have long been protected under federal legislation generated years ago. Why not enact similar mandates to preserve prime agriculture soils or working farms? Keep in mind the law of unintended consequences though, as trying to tighten the laws to preserve agriculture soils will actually promote the loss of farms, as farmers will be inclined to sell their farms if they perceive threats to the value of the property. Each of us would probably do the same if we thought the value of our house would be diminished from pending legislation. Moreover, anything tied to more regulation or legislation will simply lead to more legal battles that in the long run achieve little toward farm preservation.

A New Way

If the current approach is not working, what, then, is the answer?

One potential avenue to explore may be to learn from the efforts of non-profit organizations, whose approach to preserve open space frequently encourages limited development of farm acreage, while preserving the balance of the farm as open space. Current economic realities, though, suggest that the non-profits' approach may require some modification, as past successes were driven partially on the ability to take advantage of the tax codes in times of economic surpluses. The success of the many non profits has been in thinking "outside the box" and seeking cooperative solutions. The next generation solution may involve incentivizing those involved in the development process to embrace sustainable farm practices for both crops and animals as part of development proposals. There is also a large opportunity to use some of the land set aside for open space for farming practices.

Additionally, we have to become more proactive. No plan to save the farm should depend on tax benefits, government grants or subsidies. The plan has to work at the local level and it has to provide fair compensation to the farmer. The farmer, after all, will be assuming the financial risk and uncertainty of adopting a nontraditional and unproven approach to preserve a smaller but sustainable farm operation. Since local land use law is not set up to protect farms, the farmer, developer, local municipal leaders, and the local community must caucus and agree on how best to proceed. Initially, many developers may not be quick to embrace this approach, and same probably may also be true for municipal leaders, as this is an uncertain path that will rely heavily upon the belief in a better plan and a trust that neighbors and governing bodies will act responsibly.

To achieve the desired result, it will be necessary to set aside existing zoning and land development ordinances that normally control density and design. Instead, the focus must be on identifying farm resources needed for the farm to remain economically viable, and then crafting a plan for the balance of the land that compensates the farmer for effectively restricting forever a portion of his farm for continued farm operations. Compromise will be a component, as past efforts to preserve open space frequently prioritized setting aside wetlands, floodplain, steep slopes, wildlife habitat, tree masses, lands important as public views, etc., none of which are necessarily compatible with preserving high quality farm soils or preserving the operation of a farm.

Procedural approval of the agreed plan will also present challenges, as most municipalities cannot spot-zone. One solution to this may be found in the use of overlay districts to existing zoning. The federal government may prove to be a hindrance though, as the laws governing the protection of wetlands and high quality watersheds offer no room to look at the bigger picture and possible competing priorities. Educating the general public will also be an important element if this approach is to gain support, as many non-farmers do not fully appreciate the benefits of saving a farm.

Saving our farms goes beyond just approving land development plans. We need to provide for the long term operation and management of the farm. Near-term, providing the farmer is able and willing, the operation of the farm can remain with the existing farmer. Eventually, however, the existing farmer will be physically unable to continue with day-to-day management of operations, so any plan for saving the farm must provide for the long- term operation of the farm by providing for a farm manager. This includes providing the farm manager with farm facilities and property. The farm manager will not own the property, but will have the opportunity raise his family from income generated by the farm. The underlying assumption here is that, given the opportunity of land to farm and a place to live while doing it, there will be people with the ability, knowledge and drive to operate and manage the farm.

Good, proven programs can help new farmers get started and manage. Pennsylvania offers a good example of programs that help. The Penn State Extension Program offers instruction for farmers on farming practices, writing business plans, disease control and farm management. The PA Association for Sustainable Agriculture (PASA) has programs to train farmers in soil management, water management, and business plans. PASA also supports buying fresh and buying local, which is important as the famers need a local market in which to sell the farm product. The Community Supported Agriculture (CSA) initiative goes even further. In a CSA the farmer brings in local people to make modest investments each growing season, and possibly volunteer at the farm, in exchange for each member sharing in the vegetables and produce grown that season.

Why Should We Care About Saving Independent Farms, Anyway?

Does the goal of preserving independent farms reflect the interests of the majority of our population and, if not, should the majority even care?

As result of technological advancements, food supply is, after all, not a problem, is it? And previous predictions of worldwide famine have not materialized. Today, we grow more food per acre in the typical large industrial farm operation than ever before.

This "success", however, ignores some of the ugly scars that the heavy use of chemical fertilizers and pharmaceutical enhancements cause. In Time Magazines' August 3, 2009 publication, Rebecca Kaplan states "The US agriculture industry can now produce unlimited quantities of meat and grains at remarkably cheap prices. But it does so at a high cost to the environment, animals, and humans". She then goes on to further discuss how current, large-scale farming operations are contributing to "dead zones" in the Gulf of Mexico, which are devoid of fish.

Even ignoring the damage associated with the success of producing food more efficiently, are we sure we're not at risk of food shortages now and in the foreseeable future? The answer depends not only on the continued production of food, but also on the safety and reliability of its distribution system. On a global basis, we know that food distribution is neither totally consistent nor reliable. Millions of people face food shortages every day. Thinking locally, the more concentrated farming operations become, the greater our exposure to crop and animal disease.

As the global economy continues to expand and take root, is it reasonable to expect that the food we import is safe? As a practical matter, we need to realize that the world food production and distribution system is far too vast and complex to be effectively monitored, so we are inherently assuming some level of risk .Other risks posed by the global economy include potential disruption in supply resulting from war or disease or, perhaps, a root cause we have yet to anticipate.

Basic principles of risk management dictate diversification, so to minimize our risk we should de-centralize farming into the hands of many.

In addition to risk management, there has been growing public sentiment about giving ourselves a voice regarding the quality of the food we eat. Sustainable farming for crops and animals is already taking hold. Many individual consumers, and companies and owners of restaurants, now insist on buying locally grown produce, as the food tastes better and is believed to be healthier. The sustainable farm also leaves a more environmentally friendly carbon footprint by avoiding the usage of heavy chemical and pharmaceutical enhancements used in the industrial farm complex.

Conclusion

Given all the arguments in favor of saving our independent farms, why, then, is it not a priority to save them? And whose responsibility should it be? Does the responsibility rest with the farmers themselves, many of whom have been dutifully working their land for generations? Should the municipality's elected officials be held accountable for saving the farms and do whatever has to be done to make it happen? What about our elected state and federal officials? Since regulation and legislation enacted to this point with the best of intentions have actually contributed to the problem, we clearly need a new way of thinking at this level.

The farmer cannot do it alone, just as the municipality and local citizen groups cannot do it alone. It has to be a cooperative effort. But even if all involved in the process of planning for the preservation of ours farms work together, there is still a missing piece in the puzzle without which sustainable farming cannot work.

What is the missing piece to complete the puzzle? It is all of us. It is all of us in how we treat food as a commodity to be acquired at the cheapest cost. It is all of us in how we blindly and foolishly expect our government to protect our food supply rather than support diversification with more numerous smaller farms. And it is all of us because we allow our busy lives to dictate shopping at large grocery stores buying vegetables and meats imported from across the country, and across world, as opposed to supporting the local farm.

John Lynch is the founder and President of Trilogy Investments, LLC, a West Chester, PA development and investment firm. For more information, contact John at trilogylynch@verizon.net or 610-430-7567

Life Insurance Basics

Many of us buy life insurance because we want to make sure that our loved ones, especially dependents, remain financially secure after we die. Income replacement is the No. 1 reason people buy life insurance.

Non-earning caregivers also have an important - and often overlooked - economic value that should be covered by life insurance.

Life insurance is also purchased by those interested in achieving specific business or estate-transfer goals.

There are many types of life insurance policies depending on your goals, and there are huge price differences among different companies offering identical coverage. Policies are available from hundreds of life insurance companies in the United States. Most financial planners recommend that each family income provider carry no less than 10 times their annual income in life insurance.

Here's an orderly way to go about shopping for life insurance:

1) Assess your needed life insurance amount..




2) Decide on the most appropriate policy type for your goals.




3) Choose possible companies by setting high standards for financial stability ratings.



4) Shop until you find the best price.



5) Look at ways to get the best possible life insurance rate.

Life insurance is a long-term proposition, so you should pay particular attention, at time of purchase and throughout the life of the policy, to the financial stability ratings of your life insurance company. Ratings indicate a company's ability to pay claims.

Assessing your life insurance needs

The first step in life insurance planning is to analyze your life insurance needs - meaning the economic needs of dependents left behind. A great way to determine your coverage needs is to use an online calculator like Insure.com's Life Insurance Needs Estimator Tool.

Before purchasing a life insurance policy, consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your final medical bills and funeral costs? Would your family have to relocate or otherwise change their standard of living after losing your income? The assumption of immediate death is necessary to determine the current life insurance needs for a family or individual.


Add in the longer term financial needs of the remaining family members, such as: children's expenses, income for the surviving spouse, mortgage and other debt payoffs, college education funds and an additional emergency fund.

Because life insurance needs change over time, your life insurance amount should be reevaluated periodically. We recommend a review at least once every five years or whenever you experience a major life event such as a change in income or assets, marriage, divorce, the birth or adoption of a child, or a major purchase such as a house or business.

In theory, you should have a declining need for life insurance as you age because fewer people remain dependent upon you for income support. Exceptions would be protecting a business entity or paying taxes on a large estate for heirs. If the purpose of buying life insurance is to pay estate taxes, then you'll need permanent life insurance, which is in-force as long as you live and pay premiums.

Policy choices

Life insurance policies [http://www.insure.com/quotesmith/controller?REF=99998&reqid=qstermindex&redirx=x] are divided into two main types:

Term life insurance, which provides only death protection without any side funds or "cash values" (offering the least expensive cost per $1,000 of death coverage purchased).




Permanent life insurance, which has "cash value" accounts in which a return-on-investment component becomes an often complex and expensive part of the policy (most expensive cost per $1,000 of coverage).

Term life insurance

The simplest of all life insurance to understand and the cheapest to buy: Term life insurance provides death benefit protection without any savings, investment or "cash value" components for the term of the coverage period.

Term life insurance is available for set periods of time such as 10, 15, 25 or 30 years. With "annual renewable term life," your policy automatically renews each year and premiums increase as you get older. Choose "level term insurance" if you want your premium to stay the same for the duration of the policy. Also available is "decreasing term insurance," where premiums remain level but your death benefit declines over time. This is good if you want to cover only a specific debt that decreases, such as a mortgage or business loan.

As long as you pay your premiums, the company cannot cancel you.

Term life insurance is a popular choice because of the long rate-guarantee periods and because of the ability to get a low cost life insurance policy. However, if you get to the end of your policy term and still need life insurance, you'll need to shop for a new policy, which will then be priced based on your older age and health status.

Choosing an initial rate-guarantee period is easy: Match the period of time your dependents need your income to the available rate-guarantee periods. For example, if your children are young and you have decades to go on your mortgage, try 30-year term life. If your children are leaving the nest and your home is paid off or nearly paid off, 10-year term might fit the bill.

Other policy provisions that drive the popularity of term life insurance are guaranteed renewal and guaranteed convertibility.

Guaranteed Renewal. Before you buy a term life policy, ask the agent or company to confirm to you that the policy contains a guaranteed renewable option, which grants you the right to continue coverage beyond the initial rate-guarantee period without a medical exam. This feature, found in most term life policies sold today, is extremely important should you become sick and uninsurable toward the end of your rate-guarantee period.

For example, say that you've been paying $800 per year on a $500,000, 20-year level term life policy and develop cancer near the end of the 20-year period, thus making you uninsurable. Assuming that you want to continue the coverage, a guaranteed renewable clause would allow you to continue the coverage beyond 20 years on an annual renewable basis without an exam, albeit at a much higher annual premium of, say, $8,000 in year 21, $11,000 in year 22, and so on.

You may have sticker shock right now but these premiums don't look so high when you are very sick and uninsurable but still in need of coverage.

Guaranteed Convertible. Another built-in feature of most term life policies is the right to convert your coverage to any cash value policy that the company might offer at current rates without having to take another physical exam. This feature may be of use in the future if you decide you want cash value life insurance.

If you'd like term insurance to cover you for a certain period of time but you're confident you'll outlive the policy, consider a "return of premium" (ROP) term life insurance policy. Under this type of policy, if no death benefit has been paid by the end of your insurance term, you receive all your premiums back (tax-free). Return of premium term life insurance generally costs 50 to 150 percent more than a comparable term policy but it provides a way to hedge your bets no matter what happens.

Term life insurance is widely available on the Internet, from direct-to-consumer life insurance companies and from insurance agents and brokers.

Cash value life insurance

If you want more than a death benefit from your life insurance policy and like the idea of a long-term savings account (not insured by any federal agency) or stock market investment, you might consider cash value life insurance such as whole life, universal life or variable life. But be prepared to pay much higher premiums per $1,000 of coverage precisely because you are now funding a cash value account and paying fees and expenses.

In many cash value policies, the annual premium does not increase from year to year. Universal life policies allow you to fluctuate or even skip premium payments, which in turn adjusts your death benefit amounts.

Unlike term life insurance, which is easily compared online, cash value insurance is often marketed by agents and brokers in a face-to-face setting, where needs and strategies can be discussed.

Because of the complexity and dizzying array of possible outcomes for permanent life insurance, regulators insist that cash value insurance be sold using pre-approved illustration formats. These illustrations can run to 15 or more pages. Cash value life insurance illustrations are divided into two major sections: guaranteed values and projected or "illustrated, non-guaranteed" amounts. Illustrations can be complex and hard to compare in an apples-to-apples way.

Pay particular attention to the guaranteed death benefit and premium-payment sections because these columns contain the actual company promises. If you don't like what you see there, walk away.

Another caveat: Many cash value policies contain harsh penalties for surrendering the policies in the early years. Changing your mind within the first few years is an expensive decision.

Whole life insurance

Ordinary whole life insurance offers "permanent protection" with a cash value account that grows over time. Whole life provides a level death benefit and level premiums throughout your life and for as long as you continue to pay the premiums. For example, a healthy 40 year-old female might pay $4,200 per year for a $500,000 whole life policy. The premium remains level at $4,200 per year for the rest of her life and, in the event of death at any age, the policy will pay $500,000 to her beneficiary.

Whole life also contains a cash value account that builds over time, slowly at first and gaining steam after several years. You can withdraw your cash value or take out a loan against it, but remember, if you die before you pay back the loan, the death benefit paid to your beneficiaries will be reduced. For example: Susan has a $500,000 whole life policy in force and, over the years, has borrowed continually from the cash value. Her total loan amount and accrued interest totals $300,000. When Susan dies, her beneficiary will receive $200,000 because the life insurance company will first pay itself back from the death benefit.

Understand what your beneficiaries will receive upon your death. If you have a traditional whole life policy, your beneficiaries receive only the death benefit no matter how much cash value you've built up. Other payout options available for higher premiums are:

Death benefit plus cash value




Death benefit plus return of premium

Whole life policies can be issued as "participating" or "nonparticipating." Participating policies typically cost more but may return annual dividends if the insurer has a good financial year. Dividends are never guaranteed. Nonparticipating whole life insurance offers no dividends.

Buyers of whole life insurance like the certainty of fixed premiums with a known death benefit for life. They also appreciate the "forced savings" component and watching their cash value account build up.

Universal life insurance

This kind of policy offers greater flexibility than whole or term life. Universal life has many moving parts to understand before you buy.

After your initial premium payment, you can reduce or increase the amount of your death benefit. Also, after your initial payment, you can pay premiums any time and in any amount, as long as you don't miss a minimum payment level. In some cases, there are limits to how much extra you can pay in advance. If you choose to increase your death benefit, you may have to provide medical proof that your health has not deteriorated.

You will need to manage these policies to maintain sufficient funding, especially because the insurance company can increase charges.

Some new universal life policies perform like term life insurance: They can be configured at the time of purchase to provide both level death benefits and level premiums that are guaranteed for life as long as you pay the scheduled premium.

Variable life insurance

Variable life offers a death benefit with a side fund that operates like an investment account. It shifts the uncertainties of investment gains and losses to the policyholder.

The insurance company invests your premiums and offers you a choice of funds in which your money will be invested. Returns are not guaranteed. The amount of money your beneficiaries will receive and the cash value of your policy depend on how well the underlying accounts perform. Theoretically, the cash value can go down to zero and, if so, the policy will terminate. Some variable life policies will guarantee a minimum death benefit.

Other permanent life insurance considerations

When your cash value account grows large enough, it can be used by the insurer to pay your premiums for the rest of your life. This is known as being "paid up." You can still withdraw your cash value, but you'll have to resume premium payments to keep the policy in force or settle for a reduced benefit that the remaining cash value can support. Your policy illustration will show you how long it may take for your whole life policy to be "paid up."

If you no longer want your whole life policy, you can surrender it to receive the current cash surrender value or convert it into an annuity, but keep in mind that cashing in a permanent policy after only a couple of years is an expensive way to get insurance protection for a short time.

Riders add benefits

You can add riders to your life insurance policy that guard against a number of unpleasant situations. Your insurer will have its own list of available riders, but here are a few:

Accelerated death benefit rider (aka living benefits rider): Pays the benefit early if you become terminally ill.




Accidental death benefit rider: Pays an extra benefit if you die as the result of an accident.




Long term care rider: Pays for long term care expenses should you not be able to do some of the "activities of daily living," such as dressing or toileting.




Waiver of premium rider: Waives premium payments should you become totally disabled.

How life insurance is priced

Your life insurance rate is based on your life expectancy, the face amount you request and the length of the policy, whether it's the duration of your life (whole life) or a specific period (term life). Obtaining a low cost life insurance policy depends, in large part, on your current and past health.

Because your current and past health conditions impact your life expectancy, insurers want to know as much as possible about your health condition. Common conditions such as high blood pressure, heart disease, obesity, cancer and depression can all raise your life insurance rate or even result in a declination.

Based on your medical history, you'll be grouped into a category such as "preferred plus," "preferred," "standard" and "substandard." Your category ultimately determines your premiums.

Insurance buyers with severe health conditions or a combination of conditions can find it hard or impossible to find life insurance. They are known as "impaired risks." Local agents may not be experienced enough to find a company that specializes in insuring people with certain medical conditions. Fortunately, impaired-risk specialists have expertise in knowing where to direct applications for folks with medical conditions.

The life insurance buying process

The life insurance applications process is paper-intensive, can take weeks and often seems intrusive for people who value their privacy. A face-to-face paramedical examination is generally required for policies in excess of $100,000, which means, at minimum, giving of both blood and urine samples to the paramedical professional.

Expect questions in detail regarding your lifestyle, intended foreign travel destinations, your family health history and your personal health history. Do you intend to scuba dive? Have you had parents or siblings with heart disease or cancer before age 60? Have you ever taken any medicine for anxiety or depression? These, and more, are the kinds of questions to expect.

Sometimes multiple interviews are required in order to verify your information. The paramed examiner typically asks these questions face-to-face and often insurance companies will conduct follow-up telephone interviews so that you can verify the first set of answers. Regardless of the type of life insurance you buy, most policies require you to meet certain guidelines regarding your lifestyle and health history.

If it sounds tempting to shortcut this process by fudging on an answer or withholding information, don't do it. It's a crime in all 50 states to lie about or conceal information on a life insurance application. Besides, policies obtained through fraud can be voided at claim time.

Insurers will likely report your medical exam results (reported as numbered codes) to the Medical Information Bureau (MIB), which maintains a database of those who have applied for life insurance in the last seven years. If you've given different answers to medical questions in the past, it will raise a red flag with the MIB. The goal of the MIB database is to reduce fraud.

All standard life insurance policies generally cover death by any cause at any time in any place, except for death by suicide within the first two policy years (one year in some states).

If you don't care to go through the underwriting process, you have two other, more expensive, options:

Simplified issue life insurance can be purchased after answering only a few medical questions. There is no medical exam required. However, if you report health problems, you will likely be declined. Also, if you are healthy, or even if you have some negative medical history, an underwritten policy is still going to be your least expensive.




Guaranteed issue life insurance is sold to anyone who applies (up to an age limit) and is by far the most expensive way to purchase life insurance. This should be considered only by those who are declined for everything else but still need life insurance. These policies have graded death benefits, meaning your beneficiaries won't receive the full death benefit until several years into the policy.

In naming a beneficiary, keep in mind that the life insurance company will want to see only the names of those who are financially dependent upon you. An acquaintance, friend or relative, absent of a financial relationship, will not do.

Working with an agent

After reviewing the various life insurance policies available, you might still be unsure about which best meets your needs. The American Council of Life Insurers (ACLI) recommends consulting an insurance agent. ACLI spokesman Jack Dolan says an agent can recommend policies that will meet your needs. "Look at the recommended policy with care to be sure it fits your personal goals," Dolan says.

Carefully study your agent's recommendations and ask for a point-by-point explanation. Make sure the agent explains items you don't understand. Because your policy is a legal document, it is important that you know what it provides.

Insure.com offers these recommendations for deciding which type of life insurance to purchase:

If your agent recommends a term life policy, ask:

What is the Standard & Poor's, A.M. Best, Fitch, Moody's and Weiss ratings of this insurance company?




What is the initial rate-guarantee period? Is this policy renewable past the initial rate-guarantee period without a physical exam? If so, what are the premiums?




Is this policy convertible to permanent insurance without a physical exam? If so, for what period of time do I have the right to convert?

If your agent recommends a cash value policy, ask:

What is the Standard & Poor's, A.M. Best, Fitch, Moody's and Weiss ratings of this insurance company?




Can you tell me, in writing, why you are recommending cash value insurance for me at this time?




Why should I combine my life insurance protection needs with my investment objectives?




Can you please prepare an analysis for me that shows the true cost of this cash value insurance policy over 5, 10, 15, 20, 25 and 30 years vs. buying term life and investing the difference in long term bonds over those same time periods?




How much is your first-year commission on this proposed cash value policy vs. your commission on an equivalent term life insurance policy?




Are these proposed annual premiums within my budget?




Why do you think that I can commit to paying these premiums over the long term, perhaps decades?




How much will I receive if I surrender the policy?

Additional Resources

Consumer Federation of America's Insurance "Rate of Return" Service



Insurance Information Institute: Learn about life insurance



Your state's department of insurance may also have life insurance buying guides online



For a free life insurance quote or more information on the types of life insurance available, please visit Insure.com.

Amy Danise is a staff writer for Insure.com. Visit Insure.com for a comprehensive array of comparative auto, life and health quotes, including a vast library of originally authored insurance articles and decision-making tools that are not available from any other single source. Insure.com is dedicated to providing impartial insurance information to consumers. Visitors can obtain instant quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown.

Tips For Locking in the Best Home Mortgage Rate

Tip #1: Always Shop For Home Mortgage Rates

Don't blindly accept a Realtor or Builder referral to apply for a Home Mortgage through their preferred lender. Many times they will say, "We work closely with this guy and he gets the job done". Translation: "We play golf together and he buys the beer". Remember, the Realtor won't be paying the bill each month for the next 30 years, you will.

Mortgage Loan Officers that work off of a referral network of Realtors and Builders don't have to have competitive Home Mortgage Rates because they have a steady stream of "Drones" (people who are referred to them and don't shop) calling them. Shop around, get the lowest cost Home Mortgage Rate, then if you are inclined, approach the "preferred" Loan Officer you were referred to and ask him to match the quote.

If you apply for a Home Mortgage through a preferred lender without shopping, you will pay hundreds or even thousands of dollars in additional costs.

Tip #2: Call For Home Mortgage Quotes After 11:00 a.m. Eastern Time

Mortgage Rates change each day and sometimes midday. The previous day's rates typically expire by 8:30 a.m. the next morning. Generally, Home Mortgage Rates are published each day by 11:00 a.m. Eastern time. This varies from lender to lender. To make sure you are getting Home Mortgage Rates from the current day and not a mixture of rates from the previous day from some lenders and the current rates from other lenders, always do your rate shopping after 11:00 a.m. Eastern time.

Get all your quotes after 11:00 a.m. Eastern time.

Sometimes Home Mortgage Rates change midday due to a volatile bond market. When this happens, some Home Mortgage Lenders will adjust the Discount Points for their rates in accordance with the new bond prices and publish new Home Mortgage Rates for that day. Other Lenders may continue to honor their morning rates.

Tip#3: Always Tell The Mortgage Loan Officer You Are Prepared To Apply For A Loan NOW

If you are buying a home, tell the Home Mortgage Loan Officer you are Rate shopping and you have a "ratified contract" to purchase a house. Tell him you intend to make a decision and Lock-In a rate on that day, but you have to check a few other lenders. If he asks you how his rates compare to the others, tell him he's the first person you've called. If you are refinancing, tell the Home Mortgage Loan Officer you are ready to apply for a Refinance Home Mortgage today. If you don't tell him that, he may provide a fake Home Mortgage Rate quote.

Loan Officers know you will probably talk to another lender with lower Home Mortgage Rates and the only way he can be sure for you to call him back is to give you a fake quote that appears to be the lowest. He's expecting you will rate shop for several days and figures you will call him back in a day or two because he provided a low, bogus rate quote. Also, since Home Mortgage Rates change daily and are subject to change at any time, he's not concerned about giving you a fake quote.

How will you compare quotes if you don't know which quotes are real and which are part of a bait and switch plan? The only way to ensure getting real quotes is to box in the Home Mortgage Loan Officers by making them think you are ready to Lock-In a Home Mortgage Rate immediately.

Tip#4: Ask For The Total Points And The Total Fees

When you call a Mortgage Lender, ask for the "Total Points" (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate. Some lenders will only quote the Discount Points and deliberately leave out the Loan Origination Fee. You won't find out about the 1.00 Point Loan Origination Fee until you apply for the Home Mortgage. By that time, the Loan Officer figures you will just accept it because he's got your application and pulled your credit report. In addition, Mortgage Brokers often neglect to mention their Broker Fee.

Some lenders do not charge a Loan Origination Fee.

When you are quoted the Total Points, specifically ask them if there is an additional Loan Origination Fee or Broker Fee being charged. You truly have to nail this down when you talk to a Home Mortgage Loan Officer.

Also, ask for a list of ALL other fees that will appear on the Good Faith Estimate that you will be paying to the Lender or Broker. Make sure they include their Credit Report and Appraisal Fees. Some lenders charge one lump sum fee and that includes the Credit Report and Appraisal Fees while other lenders will itemize each fee. Keep it simple and ask for all fees, including the cost of the credit report and appraisal fees.

Don't get confused by Title Company, Attorney Fees or Escrows. A lender will estimate these on your Good Faith Estimate, but these charges are not related to costs associated with a Mortgage Rate quote. The amount required for your escrow account will not change from lender to lender and Title Company and Attorney Fees are not being charged by the lender. Don't include them in your comparison.

Tip#5: Always Confirm The Rate Lock Period When Asking For A Rate Quote

If you are buying a home and you need 60 days to close, make sure you specifically request Mortgage Rate quotes with a 60 Day Lock period. Some Home Mortgage Loan Officers will quote rates with 15 Day or 30 Day Lock periods because the Discount Points for shorter lock periods are less than rate locks for longer periods. Quoting a Home Mortgage Rate with a 15 Day lock period obviously gives that Loan Officer an unfair edge. It is also a waste of your time because the quote isn't real if you can't settle on your loan within 15 days. Always specify a 60 Day Lock-In if you are buying a home. Ask for 45 Days if you are refinancing, but you may be able to get it done within 30 days if you are very diligent and call your Home Mortgage Loan Officer twice a week for a status of your application.

If your rate lock expires, the lender will re-lock you at the higher of either the original rate or the current rate when you decide to re-lock. That's a LOSE/LOSE situation for you. Never let your rate lock expire.

Tip#6: Compute The Dollar Cost Of The Points And Add All Fees

After you've spent some time talking to a bunch of Mortgage Loan Officers, you will have lots of Rates, Points and Fees on a sheet of paper. You will need to compute the dollar cost of the Points (multiply the mortgage amount X the Total Points expressed as a percent; For example, multiply 400,000 mortgage amount X.625% for.625 Points). Then add the dollar cost of the points to the Total Fees. You can then compare each Home Mortgage Lender's Total Cost (dollar cost of the points + all lender related fees) for a given rate. That will show you which Home Mortgage Lender has the lowest cost Home Mortgage Rates.

If Mortgage Insurance (not to be confused with mortgage life insurance) is required on a Conventional Home Mortgage, ask for the cost per year expressed as a percent and compare it from lender to lender. Some lenders require different levels of coverage and this will affect your monthly Mortgage Insurance payment. In addition, lenders use several different mortgage insurance companies and they charge different rates for their coverage. The lender will select the mortgage insurance company.

The cost of Mortgage Insurance can vary from lender to lender even though most Home Mortgage Loan Officers will say, "We don't determine the Mortgage Insurance coverage, Fannie Mae and Freddie Mac do". Your can just say, "Please humor me and provide the Monthly Mortgage Insurance expressed as a percent".

You will want to check the quoted percent with what is on your initial application documents and final loan documents to make sure the Monthly Mortgage Insurance payment isn't higher than what you were quoted. If it is, get it reduced immediately. If they won't do that, then ask them to reduce your Home Mortgage Rate by.125% and that should cover the difference.

If you are getting a government insured mortgage (FHA or VA), you don't have to get into a comparison of the FHA MIP or the VA Funding Fee. This is a cost you will be paying, however every lender MUST use the same costs, so there is no reason to attempt to compare these costs from lender to lender.

Tip#7: When You've Found The Lowest Cost Rate, Apply and Lock The Rate

While you were looking for houses or thinking about refinancing, you may have shopped around and gotten some quotes from lenders and narrowed down your search to the best 5 Home Mortgage Lenders or Brokers. But when it is time to apply for your Mortgage, make sure you update your quotes for the 5 lowest priced Home Mortgage Lenders. After you identify the Home Mortgage Lender with the lowest cost rate, call and apply for the loan. Tell the Home Mortgage Loan Officer you want to Lock-In your Home Mortgage Rate and apply NOW. If the quote has changed since you updated your quotes a couple of hours before, tell the Loan Officer you want him to honor the previous quote. If he won't do it, tell him you may call back. Then call the next cheapest Home Mortgage Lender on your list. If that lender tells you the same thing, you can go back to the first lender and proceed with the application process.

Before you provide your application information, make sure the Home Mortgage Loan Officer agrees to provide you with an actual Rate Lock confirmation via email or fax on the same day you apply for your loan. When you receive the Rate Lock confirmation, check it and make sure you are Locked-In for the number of required days (30, 45 or 60), with the correct Loan Type (30 Year Fixed, 15 Year Fixed, etc.), with the correct Total Points quoted. It's normal for a lender to require you to apply over the phone before they will Lock-In your Home Mortgage Rate.

TIP#8: Never Float The Rate

If the Mortgage Loan Officer thinks you might be inclined to FLOAT your Rate and Points, he may say, "I think the rates are going to be coming down, so you might want to FLOAT". Remember this, never FLOAT your Home Mortgage Rate. Never. Always Lock-In the Rate and Points. If you FLOAT, and the Discount Points for Home Mortgage Rates drop, you will only realize the benefit of a small part of that drop in the Points, if any at all. The Home Mortgage Loan Officer will keep the rest of the savings as a fat commission.

Here's how they increase their commission when you FLOAT. Originally, the lender quoted 4.875% with 1.00 Total Point when you applied for your loan. Then 45 days later you called to Lock-In. Keep in mind that over the 45 day period that you were FLOATING, the actual Points for 4.875% dropped to.250 Total Points. So you should have saved.75 Total Points on your 4.875% rate. Right? No! First, you don't know if his company's points have dropped or by how much they might have dropped. So, instead of giving you 4.875% for.250 Total Points, the Home Mortgage Loan Officer tells you his rates only dropped a little bit. He says you can Lock-In 4.875% for.75 Total Points. You are happy because it is.25 lower than what it was when you applied for your loan, but the Home Mortgage Loan Officer is ecstatic because he keeps half of the "overage" you paid. That overage is.50 points and he splits this with his company. If the mortgage amount was $400,000, he just earned.25% which is an additional $1,000 commission. That's not bad for a five minute phone conversation.

If you FLOAT and the Discount Points for Mortgage Rates increase, you will pay for the increase. FLOATING is a LOSE/LOSE proposition for you and a WIN/WIN for the Home Mortgage Loan Officer.

Some companies quote very low rates and attract lots of applications, but they don't let you Lock-In until 15 Days prior to loan closing. If you apply for a Mortgage through a company with that policy, you will get screwed. When it's time to Lock-In your Mortgage Rate, you will pay an "overage" that will go straight to the Mortgage Loan Officers pocket. You will either pay more points for the rate you requested at the time of application or you will get a higher rate. Either way, you will get screwed and the Loan Officer will get a fat overage added to his commission.

Tip#9: Get a Final Good Faith Estimate Several Days Before Loan Closing

Get a copy of the Final Good Faith Estimate at least a few days before the scheduled closing day. Check the Mortgage Rate, Points, Fees and Monthly Mortgage Insurance Premium (if applicable). Make sure you are getting exactly what you bargained for. Ask questions if you don't understand something. Demand that previously undisclosed fees be removed from the Final Good Faith Estimate. Make sure you get a revised estimate if the Mortgage Loan Officer verbally agrees to make changes.

The day of loan closing is the wrong time to haggle over discrepancies.

http://homefunding.com

Why Is Organic Farming Bad - If It Is?

Why is organic farming bad, if it is? We have been told that organic farming is good for our health. Proponents have trumpeted the message that organic farming is good for the environment. How could it possibly be bad?

It seems that, increasingly, life is being divided into traditional and alternative. Each side claims their methods to be better than the other's. Each tries to win people to their side. Traditional schooling fights alternative schooling. Conventional medicine fights alternative medicine. Mainstream culture fights alternative subcultures.

Farming, too, is involved in a battle, conventional farming against organic farming. Environmentalists and those concerned with their health assure us that organic farming is preferable in many ways. But others argue that organic farming is bad.

Why is organic farming bad?

Research Results

In 2002, Swiss scientists at the Research Institute for Organic Agriculture published in "Scientist" a highly publicized study. Their study, which covered 21 years, compared four types of farming. Two of those types were organic farming. The other two types were conventional farming.

Reporters quickly stated that the study proved organic farming was more efficient. Organic farming's advocates said the study showed that organic farming uses 50% less energy. The facts?

1. Conventional farming is 20 percent more productive than organic farming.

2. Crop yields were significantly lower in organic farming.

3. The above two facts meant energy savings in organic farming were actually only about 19 percent per unit of crop produced, not 50 percent.

4. The study did not test organic farming against the most current methods of conventional farming. If it had, experts say, the 19 percent advantage of organic farming would disappear.

5. Current conventional farming matches organic farming when it comes to environmental advantages. Both have beneficial insects, produce less pesticide and fertilizer runoff, and reduce soil erosion.

6. Food quality was almost identical in conventional and organic farming. Advocates of organic farming had long claimed their food was far superior.

7. Current conventional farming methods produce the same or greater yields mentioned in number 1 above.

This research does not, of course, conclude that organic farming is bad. On the face of it, the conclusion is more that organic farming is not very different from current conventional farming. There most be other reasons for people believing organic farming is bad.

Organic Farming Can Kill

Many took from the Swiss study a realization that, as Cambridge chemist John Emsley said, "the greatest catastrophe the human race could face this century is not global warming, but a global conversion to 'organic farming'- [where] an estimated 2 billion people would perish."

Organic farming may supply food for small markets, but how can it feed starving nations? Its adversaries claim that current conventional farming is the only hope for these people. If we turn entirely to organic farming, they say, we will doom billions to die of starvation.

Challenging Organic Farming

Alex Avery, Director of Research and Education for the Hudson Institute's Center for Global Food Issues, recently published a new book, "The Truth About Organic Foods." (2006) In this book, Avery offers an unemotional look at the odd origins and unscientific basis for organic farming.

Nobel Peace Prize Winning Agricultural Scientist, Dr. Norman Borlaug, says about this book, "The Truth About Organic Foods gives consumers a thorough and straight-forward explanation of why organic foods offer no real health or safety benefits. More importantly, Avery communicates why organic farming's lower yields and reliance on scarce organic fertilizers represents a potential threat to the world's forests, wetlands and grasslands. The book offers scientifically sound evidence that more-affordable conventional foods are healthy for families and also good stewardship of nature."

Skimming Mr. Avery's book, one finds statements that indicate:

1. Organic farming started in the 1920s when a German mystic advised use of only animal manure because synthetic fertilizers had no cosmic energy.

2. Soon, the wealthy decided manure-fertilized produce was better.

3. J.I. Rodale first published his "Organic Gardening Magazine" in 1942, and the organic farming / organic gardening movement was named.

4. In 2007, organic farming advocates still have no credible science to support their beliefs.

5. Organic farming does not avoid pesticides. About 5 percent a vegetable's weight is natural pesticides, some of which are cancer-causing.

6. Foods from organic farming have more illness-causing bacteria. (The January 2007 issue of "Consumer Reports" showed that chicken from organic farming has 300% more Salmonella than that from conventional farming. University studies have found more bacteria in vegetables from organic farming than in vegetables from conventional farming.

7. If organic farming, which decries synthetic fertilizer, was chosen over conventional farming, we would have a choice. We could kill millions of people to reduce global food needs, or we could sacrifice wildlife habitat in the amount of millions of square miles so we could produce more manure.

Why is organic farming bad? Mr. Avery believes he has the answer.

Notwithstanding Mr. Avery's new book, I am not sure whether organic farming is bad or not. It is often difficult to sort through rhetoric and find fact. I do know that my forefathers had large organic farms. The produce was good and it was nourishing. Before I can turn my back completely on organic farming and organic gardening, I need clearer evidence. You probably want to do more research, too.

?2007, Anna Hart. Anna Hart invites you to read more of her articles about organic farming on a small scale at http://www.organicspringtime.com. Anna is posting new articles regularly, each one dealing with some facet of organic gardening. If you want to know how to make your own organic fertilizer, you will want to read Anna?s article on the subject.

The Truth About Job Recruiters

A job recruiter must be successful in their positions to gain respect in the community they work in. This means that they need to be able to find potential employees quickly, screen them, and send them to the potential employer. The job recruiters also needs to be able to handle several different clients at once in most cases. There are a few different types of job recruiters. One type of recruiter is an internal person for the business. This means that they work in house for a company and thus taking care of all recruitment needs their company may have.

This type of job headhunter usually does not receive a commission on each person they find for the available position. The second type of job recruiter is called a third party recruiter or headhunter. These recruiters will receive commissions for every employee they find. Within the third party option is two types as well. You can have a retained job recruiter that receives payment up front for the work or you can have a contingent recruiter that only receives payment after the position has been filled.

More often, a job recruiter is assigned to fill top-level positions in larger corporations or in the sports industry. For this reason, a job recruiter differs from a temporary agency or other job placement agency. Their main goal is to help their client, the business or corporation, to find the right employee for the position. If you are a corporation, looking for a job headhunter you will want to be aware of both the advantages and the disadvantages of using their professional services. When you weigh the advantages against the disadvantages, you may find that a job recruiter is not the best option for your business. First, we will look at the advantages listed below and then we will look at the disadvantages for corporations. We will then look at the advantages and disadvantages for potential employees.

Advantages:

Saving time
Background check
Having someone screen potential employees
Testing the potential employees for skills
Often higher level positions
Internal job recruiters
Advertising for the position
Most corporations find time management to be an essential part of creating a successful business. This means that any work they are able to get done in a quick and efficient manner is important. Often times when you are a part of a larger corporation, you do not have time to spend on finding potential employees, interviewing them, and hiring the correct person along with your other duties. A job recruiter is able to do the work for you. This means you are saving time for other more important matters. Job recruiters will screen the potential employees, which is also a time saver. The job recruiter will have the information on the job opening, therefore they will be able to screen the resumes that come through the office and eliminate a potential candidate from the list, narrowing down the company’s choices. During the screening process is also the testing aspect of employees. Not all job recruiters will test employees for the skills needed for the position. This is where they differ from a job placement agency. They may test for specific skills or they may leave those options to the company. Part of testing for certain skills and screening employees are to help the corporation fill higher- level positions. The low-level positions or medium level positions may not require many skills. This means that companies tend to do this hiring internally rather than creating an extra expense. A corporation wants to know that they are receiving a qualified professional for the position without spending the time interviewing each potential candidate. While it is up to the company to higher the potential employee, they are most often working off the information supplied by the job headhunter. When a job recruiter is helping to find a potential employee, they are saving you advertising costs.

Generally, a corporation using a job headhunter will not post the job in the newspaper or among other sources leaving the recruiter in charge of the description provided as a means to find potential employees. Part of advertising for the position may include setting up the corporation website for potential employees to find. This is a third party way to make sure that potential employees find your job position, but that your corporation does not field the information.

The last advantage of having a job recruiter would be choosing an internal recruiter to work directly for the company or a retained headhunter. While a retained recruiter does exact a fee for the work they will continue to work until the position is filled and during that time, they are working solely for the corporation that has retained them. In other words, they have an exclusive agreement.

If the corporation has a in house headhunter, the corporation is paying the person a salary rather than commissions for a job completed. Most corporations that will choose this option have a high turnover rate or high expansion rate where they benefit from this internal service. In other words if the corporation is in need of a job recruiter once or twice a year a in house job recruiter may not be the best option.

Now that we have looked at some of the advantages let us look at the following disadvantages.

High placement fees. Usually 20%-30% of the candidate annual salary
Control of the hiring process
Lack of quality control
Mostly for large companies with high level positions
Third party job recruiters
We left off in advantages talking about internal or retained job recruiters. A retained job recruiter can be considered a third party job headhunter. This means that they are outside of the company acting on behalf of the corporation, as a mediator in other words. The other type of third party job recruiter that we have yet to mention is called a contingent job recruiter. This means that they do not receive payment until the position is filled. They also do not have an exclusive agreement. These types of recruiters will work for middle management, professional, and technical ranges. Therefore, there is already a limitation there. Fees are another disadvantage for most companies. As mentioned above job recruiters require payment for their services. These fees can be anywhere from 15% to 30% of the candidates annual salary. Most job recruiters will receive the commissions as long as the employee is working for the company and that they pass the probation period which is usually 3 months. So not only is the corporation paying a salary to the new employee, but they are also paying the recruiter as well. Some firms may have a one- time fee of the above percentage. The corporation also has to look at how much the fees are in comparison to how many employees they will need per year. This can bring the choice of an in house job recruiter into the mix. An in housel job recruiter is a salaried employee so the potential of being less costly is there if the demand for new employees is relative.

When considering a job recruiter whether they will be in house or a third party you also have to look at the typical positions they will fill for you. Most job recruiters work to find potential employees for high- level positions such as management, the technical industry, or sports. You may find filling a secretary position or clerk position out of context when dealing with a job headhunter. They are set up to find the employees with skills. They may even search other corporations for potential employees luring them away for a better position. While this can be beneficial to large companies such as corporations, they are not helpful for a medium sized or smaller business.

The last disadvantage for a corporation or business stems in the interview and testing process. While it will save your corporation the time and potentially money depending on the fee scale, you lose control of the process to a certain degree. The potential for missing the correct employee is high. Job recruiters can receive thousands of resumes and applications making it difficult to sort through each and everyone for the potential employee.

They may send you several choices and you will find no one in the mix at least not right away. If the position is one of immediacy, this can be a problem. You may also find that the recruiter has eliminated a potential employee based on the information you have provided without considering all the possibilities. In the instance of using a job recruiter, you are losing most of the control for hiring the right employee. While the corporation has final decision, the possibilities that have been eliminated could be the difference in finding a permanent employee and one that becomes temporary.

As a corporation, you have a responsibility to yourselves for saving time, finding the correct employees, and saving money. This means that you have to weigh all aspects of using a job recruiter for your business needs. While it is your choice more often, the disadvantages overrule the potential advantages of using a job headhunter.

Let us see what the result for potential employees may be when we make the same type of comparison. The advantages are as follows:

Set up a web page
Interview tips
Searches
Job database
Career advice
Access to position not listed in newspapers and other sources
No cost to potential employee
For a potential employee having a web page set up with your resume and all pertinent information is very important. It will help potential employers to find your information online with the ease of access. Job recruiters may offer you the service of helping you set up your own web page through their company. This means that potential employers will have access to your information without having to call you or seek you out. You will also have access to more searches through a job recruiter. In other words, a job headhunter most often has access to potential jobs that are not listed on any database you have access to. Often times when a high level position is available a corporation will be looking to the recruiter to find the potential employee through resumes, web sites, and applications rather than posting an advertisement online, in newspapers, or with other sources. Using a recruiter can give you the access you would normally be denied. Some job recruiters also offer career advice. They will point you towards the information you have to learn in order to qualify for the positions they normally work to fill. They will also in some cases help you to create your resume so that it looks better to the potential employer. This is very helpful when you consider how difficult it may be to find the position you are looking for and need.

Briefly mentioned above was the fact that you would have access to potential job you may not otherwise have access to. This bears mentioning again. Most employers save on advertising costs by using job headhunters to search for potential employees. While you may not be able to see the job descriptions through searches or databases, you will still have access to potential jobs when you submit your resume to a recruiter. They will analyze your resume for the job positions they are looking to fill. If they see what is necessary for that position they will forward your information on to the corporation or bring you in for an interview before doing so. This means you have the access to options you did not before.

The last advantage of a potential employee or job seeker using a recruiter is the lack of fees to you. While the corporation is paying a fee for the service, you can submit your information to the headhunter for no charge. This is not always the case with job placement agencies. While most job agencies will pay you as a temporary employee, some have been known to charge you for their services. Therefore making no fees from a recruiter an advantage.

As with the advantages, you will find there are several disadvantages for using a job recruiter. In fact, you will find that there tend to be more disadvantages than advantages making the use of job headhunters out of favor.

Disadvantages

Recruiters work for the company, or are independent
See several thousand resumes
Do not always call back
Place resume in a database
Are often looking for one position with specific skills
Often higher level positions
Privacy laws
May overlook what is the best job position for the sake of making a sell to the employer
Some of the disadvantages are self- explanatory so we will not spend time on those; however, we will delve into those that need extra care. Job recruiters are extremely busy with resumes and finding the right employee so they will not call you back if you are not right for the current positions they have available. This can leave you to wonder about employment and cause undue stress. They will place your resume in a database, which can seem like an advantage; however, they may not always find your resume again when a job becomes open for which you are qualified. A job recruiter is also looking to fill specific positions with certain skills. If you do not have these skills despite your education and background, they will not call you in for an interview. They are also looking for high- level employees. In most cases a job headhunter will have their loyalty geared towards the employer. Why? Well simply because they are the ones that are paying their services.

The last and most important disadvantage that must be looked at is privacy laws. Most job recruiters are not required to keep your information private. They may even sell your information to other people. While there are certain laws prohibiting this to happen, there are certainly ways around it. You must read every job application carefully to make sure that they are not able to sell or spread your personal information before choosing a job recruiter to work with. As a disadvantage, this is the most powerful one for rejecting the idea of using any type of job recruiter or job headhunter.

There are many reasons why an employer or job seeker may wish to use a job headhunter to find them a new position. With the advantages of using a job recruiter weighed against the disadvantages you will find that most often using a job headhunter is not the best option for you or your company. Job recruiters tend to have recruiting fees, not all headhunters will keep information private, and they may not be able to help you. Some recruiters offer web pages, searches, job databases, and career advice to potential employees. This is why you need to understand you options before choosing a job headhunter. This is important when looking for the perfect job opportunity.

You must be selective if you are a employee or employer. Use only a job recruiters that have been referred to you. The service offered by the job recruiters should always be free of charge for the job seekers.

[http://jobsearchengine.nomoreheadhunters.com]

Moris Kapler, writing for nomoreheadhunters.com