Login To Your Account


Financial Freedom Community

This site is a resource for Financial Education, Debt Solutions and Tools to assist with Credit Management. All the resources on this site are free of charge. We encourage visitor feedback, Tell us what you want to see more of! Sign up for news & updates and we'll keep you posted on the latest!


Consumer Personal Loans
Credit Card Debt
Advantages of Making Credit Card Debt Payments on Time and Other Tips
Avoiding Credit Card Traps
Credit Card Counseling – Learn Credit Management Tips
Credit Card Debt and Simple Ways to Consolidate Them
Credit Card Debt Consolidation Nationwide Epidemic
Credit Card Debt Consolidation Solutions
Credit Card Debt Help for Senior Citizens
Credit Card Debt Reduction
Credit Card Debt Solutions That Can Help
How to Pay Your Way Out of Credit Card Debt
Paying Off Your Holiday Credit Card Debt
Prevent Identity Theft With a Credit Freeze
Saving Money on Your Credit Card Bills
Terminate Credit Card Debt Without Consolidation
Tips on Credit Cards, Part 1
Credit Collection Laws
Credit Repair Organizations Act
Fair And Accurate Credit Transaction Act
Fair Credit Billing
Fair Debt Collection Practices – Know Your Law
Statute of Limitations
The Fair Credit Reporting Act
The Fair Debt Collections Practices Act
The Truth In Lending Act
Credit Counseling
Can Consumer Credit Counseling Help Avoid Foreclosure
Credit Card Counseling
Credit Counseling a Must for Bankruptcy
Credit Counseling Benefits
Credit Counseling Can Reduce Your Debt
Difference Between Credit Counseling and Debt Settlement
Free Credit Counseling to Help Manage Your Debt
Using Credit and Debt Counseling to Manage Your Finances
What Can Credit Counseling Offer You?
What is Credit Counseling
What to Ask a Credit Counselor?
Credit Education
Consumer's Rights
Establishing New Credit
Finance Charges
Credit Reports and Scores
Credit Repair After Bankruptcy
Do you Know the Benefits of Checking your Credit Report?
Debt Consolidation
4 Valuable Tips on Debt Consolidation
Become Debt Free With Financial Advice
Benefits of Debt Consolidation
Bill Consolidation Loans
Bill Consolidation Advice to Help With Debt
Credit Consolidation: Is It Worth Taking?
Debt consolidation and Ways to Avoid Scams
Debt Consolidation Explained - What Happens if You Don't Pay?
Debt Consolidation Loans
Debt Consolidation Loans for Payday Loan Debt
Debt Consolidation Non-Profit
Debt Consolidation Now Will Improve Your Credit Score Later
Debt Consolidation Provides Relief from Financial Stress
Debt Consolidation Services Helps to Clear Debts
Debt Consolidation – Find Relief To Your Financial Stress
Debt Management Program
Debt Management Program Will Ease Debt Burden
Do You Need Debt Consolidation?
Get a Debt Consolidation Loan to Manage Bad Debts
Government Debt Consolidation Loans
Government Debt Consolidation Loans for Student Loans
How to Consolidate – Debt Help – Consolidate Your Debt Payments
How to Consolidate Bills Effectively When Left in Debt
How to Consolidate Debt
Let the government help you consolidate your debts
The Advantages of Credit Consolidation
Understanding Debt Consolidation Loans
Debt Settlement
Elderly Can Benefit from Debt Settlement
Financial Tools & Calculators
Bill Reminder Tool
Bill Reminder User Guide
Car Loan Calculator
College Savings Calculator
Credit Card Payoff Calculator
Mortgage Loan Payment Calculator
Retirement Calculator
Savings Calculator
Loan Modification Guide – Do It Yourself
Frequently Asked Questions
Step 1: Prepare yourself
Step 2 Gather the necessary documents
Step 3 Know what to expect
Step 4 Contact your lender
Step 5 Review your loan-modification plan
Step 6 Finalize the approval and begin making payments
Home Buying
Build or Buy a Home
Choosing a Real Estate Agent
Home Equity Interest Rate Charges
Home Equity Line of Credit
Home Equity Loan Fees
Managing Your Mortgage
Mortgage Basics
Mortgage Debt Elimination, 3 Things You Must Know
Real Estate Laws
Renting vs Owning
Interesting Money Articles
12 Amazing Facts about Credit Card Debt
12 More Interesting Facts About Money – Part 2
24 Amazing Pictures of Money
Introduction To Budgeting
7 Steps to Successful Budgeting
All You Need to Know About Budget Basics
Basics of Personal Budgeting
Budgeting – How Much?
Debt Management and Prevention Using a Budget
How to Pay Off Debt – Start Budgeting
Maintaining and Budget Planning
Manage Your Debt by Learning How to Budget
The Basics of Budgeting
Transcript – The Basics Of Budgeting
The Importance of a Household Budget
Managing Debt
Debt Relief The Issue of Forgiveness
Get Out of Debt by Changing Your Financial Habits
Personal Finance Management to Reduce Debt
Start Early Teaching Kids Money Management and Savings
Saving Money
Banking & Credit
How 'Charge Offs' Effect You
Insurance & Housing
Money Management Means Setting Goals
Save Money When going to work
Transportation Savings
Utilities and Savings
What Debt Should You Pay First?
Young Couple Finances
Student Loan Debt
Student Loan Default Penalties
Consolidate Student Loans
Student Loans and the Credit Squeeze
Types Of Debts
Auto Loan Prepayment Penalties
Balance Transfers
Credit Card Minimum Payments
Gambling Debt Problem Gambling and Bankruptcy Connection
Holiday Credit Card Debt
Ideas To Save
Inherited Debts?
Six Easily Avoidable Causes of Debt
Ways to Pay Off Holiday Debts
Video Library
Personal Finance Video library
Tax Tips Video library

Free Consultation

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Latest Headlines

Latest Infographics

Most Popular Articles

Transcript – Quick Guide to Loan Modification


Article | Transcript | Info Graphic

Scott:               Today, we’re going to talk about loan modifications. Loan modifications is essentially if you fall behind on your mortgage or it’s foreseeable that you’re going to fall behind on your mortgage, then you’re looking for your mortgage company to give you some help you renegotiate terms and repayment of your loan. This has really come up in the last five years especially, with the downturn of the economy. A lot of people have lost their jobs, have changed careers. Even with the same job, they actually have had reduced hours. It’s caused them hardship to be able to maintain their mortgage payments.

With this, obviously, there are a lot of loan modification companies out there. There are attorneys out there that perform loan modification services. Like everything else, unfortunately, there are some people out there that perform these services, that all they do is take your money. At the end of the day, you’re out of your money and you wind up losing your house.

What we’d like to talk to you about today is that you can get a loan modification absolutely free of charge. Where do you find that?

Alex:                So confusing! Get to the point.

Scott:               Okay, I’m getting to it.

Alex:                Wrap it up. Let’s go.

Scott:               First off, the best place is to approach your bank or mortgage company that has your mortgage loan. When you call up for the first time, you’ll probably get their customer service department. They call them a number of different names, but what you’re looking for is the loan modification department. They may call it the loan modification department, they may call it the …

Alex:                Sexy shoe department.

Scott:               Um, no.

Alex:                Okay. Loan modification department.

Scott:               Loan modification department, the workout department, hardship department.

Alex:                Hardship pepperoni department.

Scott:               No pizza here. Loan modification, workout … Some will call it the short sale department, hardship department.

Alex:                Yeah.

Scott:               HAFA department? They call it all kinds of different things.

Alex:                Okay.

Scott:               Be very specific. Say look, I need to talk to the department that’s going to help me with my mortgage, making my mortgage payments. If they can’t figure that out, then … You never open an umbrella inside a room! What are you doing?

Okay. Anyway, you want to contact one of these departments. Most of them will have a package you’ll have to complete, which essentially will be a budget, a hardship … You’ll have to supply some documentation, like your tax return, your payslips, almost like you’re getting the loan all over again. You do have to explain what’s going on and give them a plan or show that you have enough information where you can move actually forward and have a reasonable expectation of repaying the loan under negotiated terms.

For some reason, if you feel that you cannot move forward or you don’t feel comfortable talking or dealing with the bank directly, you can still get help for free. You can get that from a HUD-approved housing counseling agency. A HUD housing counseling agency is forbidden to charge you any fees associated with assisting you with getting help with your loan modification.

Alex:                Wow, no fees. Nothing.

Scott:               Zero.

Alex:                So, how do they get paid? By the government?

Scott:               They get paid by the government. That’s right.

Alex:                By the government?

Scott:               That’s right.

Alex:                Ah. Thank you government.

Scott:               Yeah. Don’t worry. You’re paying the government to pay them, so you’re good.

Alex:                Oh, f**k you government.

Scott:               So, you’re paying it.

In any event, a HUD housing counseling agency cannot charge you any fees for doing a loan modification. The easiest place probably to find these people is actually a government website called MakingHomeAffordable.gov. When you get to that website, there’ll be a link on the top that says find a housing counselor.

Alex:                Oh God.

Scott:               Are you okay? We’re almost done. Come on. Chirp up! I’ll take you out for drinks later.

Alex:                All right. Let’s go. All right, so, the government pays all the stuff, what’s up, what’s up, what’s up …

Scott:               That’s right, the government … Well, they don’t pay all the stuff. They pay the HUD housing counseling agency.

Alex:                I pay for these f**kholes to mess up their credit and …

Scott:               You pay the government, the government pays them. Yes.

Alex:                And then the HUD comes along like little angels in their angel hats …

Scott:               Something like that.

Alex:                Yeah. Then what?

Scott:               These HUD housing counseling agencies will  help the homeowner put their package together to get it submitted to the bank, and, hopefully, if everything goes well and everything is prepared properly, they will get a loan modification.

Alex:                Yea! We all win.

Scott:               We all win. And what happens with the loan modification? It will do one of a few things. It will reduce the interest rate that’s charged on the mortgage. They may extend the term, which will lower the payment. They may write off part.

Stay with me now. We’re almost done.

Alex:                I’m going to kill myself. So hard …

Scott:               They may write off part of the mortgage balance or they may do a combination of all three to get to some sort of plan to get the mortgage paid in a reasonable period of time.

Alex:                That’s a wrap.

Scott:               Need some help?

Alex:                Oh Lord, Jesus! There’s gonna be a (bleep).

Scott:               With that said, in summary: Number one: Never, ever, ever, ever pay anybody for a loan modification.

Alex:                No.

Scott:               Never.

Alex:                They’re robbing you.

Scott:               They are. They actually are robbing you.

Number two: Contact  your mortgage company directly. Speak with them. Ask for the loan modification department.

Alex:                Can’t be happy all the time.

Scott:               Get in contact with them and look for a hardship package to work on a loan modification. If you feel uncomfortable talking to the mortgage company or the bank directly-

Alex:                They could call you.

Scott:               Well, they do call you when you don’t make mortgage payments.

Alex:                No, they’ll call you directly, like to your cell. You’ll help them out.

Scott:               I will. I will. I will. However, lastly: If you feel uncomfortable doing it yourself, you can talk to a HUD housing counseling agency and remember you can find a HUD approved housing counselor at MakingHomeAffordable.gov.

Alex:                I got a new shampoo that I used. Do you smell it?

Scott:               I do, but can I finish, just so we can go.

Alex:                Sure, yeah.

Scott:               Are you ready to go?

Alex:                Yeah, yeah, yeah.

Scott:               With that, you’ve got the tipster. For DCC Financial Freedom Community, I’m Scott Tennell.

Alex:                And I’m (bleep).

Scott:               Good Lord.

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams