I am distributing ads currently, that are all about being “Behind On Taxes?”. The calls I am receiving seem to be following a pattern, often with similar questions and concerns. If you are visiting this blog because you received one of my ads, perhaps what follows will put your mind at ease. (Maybe after you read this post, you can stop worrying, go back to bed, get some sleep, and call me in the morning.)
a) “You don’t need to know my name”
The reason I ask for your name is so that I can be polite and call you by your name when we talk on the phone. All of the conversations we have are confidential. (We are not a “snitch line” for the CRA!) So I am asking for your name so that I don’t have to address you as “Hey You” on the phone.
And if you think about it … isn’t your paranoia a thing of the past now? If you are calling the “Behind On Taxes?” ad, CRA already found you, and they already know you owe tax. So talking to me … What exactly could come from it, except ending your worry, and getting your finances back on track?
b) “Letter for CRA”
In past years, when someone called me asking for a “letter for CRA”, they were asking me to write a note that said something to the effect: “We are working on a refinance, and as part of that refinance we will be looking to make a lump sum payment towards the tax arrears.” This can have the effect of providing CRA a little comfort that a lump sum is in the works, and they might choose to hold off on doing a wage garnishment, lien, judgment, or some combination.
However, apparently times have changed. Suddenly I am being asked to write a letter saying something to the effect that “No loan is possible”, apparently so that CRA will not impose as significant a wage garnishment as CRA is threatening. So rather than garnish 40% or 50% of your gross pay, if a “No loan possible” letter is provided – CRA says they might garnish a smaller percentage of your pay because you were unable to obtain a loan.
Realize that when you call, it is unlikely that any letter that I write is going to say “No loan is possible”. If you have owned your home for any reasonable amount of time, resulting in sufficient equity being in the property, the letter is most likely going to say “We are working on a refinance, and as part of that refinance we will be looking to make a lump sum payment towards the tax arrears.”
When you call you should expect my immediate intention is going to be to get as much of your tax arrears paid as possible. (That is why we are sending out the ads that say “Behind On Taxes?”!)
But isn’t this better? Rather than only getting a letter that says “No loan possible” – wouldn’t you like to get this behind you? Just call me, let’s get working on a refinance.
c) “Bank Said No”
It really doesn’t matter what the bank said. The obstacles a bank has for borrowing largely disappear when you deal with private money. The only reason I ask whether your bank declined is that I would like you to ask the bank FIRST for a loan/secured line of credit,/some form of borrowing BEFORE we put together a deal.
Why? Because it is cheaper for you to deal with the bank, and so it is better for you.
But just because the bank said no – this means nothing to us. A bank decline in no way affects your ability to do a private equity loan.
d) I have had some people ask the “maximum” they can borrow. What defines this is the value of your home, and how much is already borrowed against it. We will need to have a 5-minute phone conversation to get an idea of what is possible. But the value of the house supports the advance – not your job, or credit, or anything like that.
If you are still reading this, worried … Obviously the “Behind On Taxes?” ad caught your attention for a reason. Just call me, or email. It is completely confidential. Let’s get working on a refinance, and get you back to enjoying your life.