Personal Finance and Money Management

With everyone wanting to modify their loan this year, it’s no wonder why so many of you have questions about the process.  Whether you want to modify it because you want to save money, or maybe you lost a job, or can’t afford your loan anymore.  There are countless reasons on why you should modify your loan.  Let’s take a look today at some of the main questions that you will hear every so often.

How does the process work exactly?

A loan modification process is fairly simple.  Most people will work with the bank they are with now, or will look at other banks.  What you will do is make a change to your home loan.  Let’s say that your interest rate is 5.65%, and you can get it modified for 4.95%.  This is going to cut off thousands of dollars over the life of the loan.  Each bank is going to be different, when it comes down to fees, and such.

How do I qualify for a loan modification?

Every household in America may be qualified for a loan modification.  If you want to find out if you’re going to be eligible for it, you will want to visit the government site at .

How do I know if I qualify?

Again, head to the site mentioned above, and fill out a little profile.  Based on your answers, you will be able to know if you’re going to be approved or not.  To be approved for that specific program, you will have to be behind on your mortgage payments, as well as have a mortgage that is worth more than your house.

Do I have to be behind in my payments to secure it?

No, not at all.  Obama’s plan was to ensure that future homeowner’s don’t go into default.  If you can barely get by today, he wants to make it easier for families to pay the bills.  Don’t feel like you’re not going to get approved, if you’re still up to date with your bills.

Who would you recommend that should do this?

I honestly say it’s up to you.  Remember that many banks are going to charge fees to re-finance, or modify your loan.  This can run upwards of $1,000 to $2,000, but if you’re going to save more than that during the life of your loan, I would do it.  It doesn’t hurt to try.

How do I start?

Try going to the government’s website again.  Here, you will be able to find where you can hire a counslor.  He/she will be more than glad to help you with your process.  You can also try asking your bank as well, to see if they can point you in the right direction.

A loan modification is beneficial to a lot of people.  It’s completely up to you on if you want to do it, or not.  Like I said above, if you can save money over the life of the loan do it.  Even if you’re struggling, it may be for you.

This is a debt blog, I know, but when you’re looking to find work, and you’re trying to get out of debt, we all know that money = getting out of debt.  So, today’s question is how the heck do you find a job when you’re a felon?

If you thought it was hard to find a job with a clean slate, think about finding a job when you have a criminal record.  Is it the end of the world?  No!  Are a lot of employers going to frown upon you?  Yes they are, but this shouldn’t stop you.  I wanted to give you some pointers on how felons can get a job today.

Consider working online: Do you have an entrepreneur spirit?  If so, you may want to think about starting up your own business online.  When you’re your own boss, who’s going to control everything?  It’s going to be you.  There’s no rule on who, and who can’t start up a business.  As long as you can make money, and people come to you, you’re going to do good.  Consider setting up an e-commerce site, or maybe even a blog. Think about the military: Full Article

I’ve had a few e-mails come into my inbox lately, and lot of them have to deal with foreclosures, short sales, and other things in the real estate market.  While I’m not the biggest expert in real estate, I’ll try my best to help out.

I received this following e-mail from a following reader a few days ago.  I will call her “Ann”

Hi,

I have a mortgage with Wells Fargo.  We currently owe $250,000, and like a lot of people in America, I lost my job, as well as my husband.  He is laid off for the time being, but I don’t expect him to get the job back any time soon.

We’ve been trying to our loan modified, but Wells Fargo just keeps giving us the run around, or we’re on hold for hours on end.  Do you know what the steps are to get a modification, or are we looking at foreclosure?  Help!

For me personally, I have a Wells Fargo home loan as well, and while I’m not in the market to modify it, I did some research online, and came to the conclusion that there are some things that you can do to get your loan modified.

First, you’re going to find that Wells Fargo is going to look deeply into your budget.  They want to know that you need this modification.  If you can still afford it, they are still going to make you pay it.  Many experts will tell you to miss a payment for 3 months in a row before even applying.  Yes, it’s going to hurt your credit score, but this is the only way the banks are going to listen to you in this market.

Keep in mind that you’re dealing with 1000s a day that are in your shoes, and you better believe that these phones are ringing off the hook.  What you’ll want to do is head to Wells Fargo’s website, and read their modification guide.  What you’re going to find out is that they can help you in many different ways.  Be honest on your application, and make sure that you fill it out properly.  You will want to follow up about every 3 days to check on the status.  You don’t want to be afraid to call!

If anyone else has this type of problem, or maybe a success story, let Ann hear about it!

Getting your credit report for the first time, or even the 10th time can be fairly confusing, and I can understand.  You’re going to find that there are so many terms that just aren’t going to make sense.  In order to make things easier for you, I’ve wrote down a few terms that you’re going to see.  Hopefully, by the time you’ve looked them over, you will find that it’s not as confusing as you thought it was!

First, you have to understand that you can only get your credit report from the three major credit bureaus.  These bureaus will include Experian, TransUnion, and Equifax.  If you want your free government credit report, you will want to head to .

Now, when you get your credit report, you’re going to be able to see the following.  While it’s straight forward, I can understand on why some may seem kind of confusing.

When you first opened the account: You will notice a date, as well as if it’s still active, or if you closed it.

What kind of credit account is it? It may be a m

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Applying for a traditional mortgage can be a tough one, and if you’re finding that you’re not getting approved for one, or you’re simply having trouble, you may want to look into a FHA loan.

A FHA loan is a mortgage that’s distributed by the Federal Housing Administration.  It’s assistance that you can get from the government, when you’re purchasing your first home.

What are the requirements for a loan like this?

Personal use only: When purchasing a home, it has to be for personal use only.  You can’t use it for a business, or use it as an investment property.  Instead, you’re going to want to ensure that this is going to be your homestead, not someone elses.

Must be a citizen: This is simple, but you must be a legal resident of the United States, and over the age of 18, so that you can legally sign a contract.

Find a qualified bank: Not every bank will work with FHA loans.  You will want to search out a particular bank.  You can either consider a loan officer, or if you wish, you can look into finding a bank online.  One simple phone call can give you the answers that you need.

When you apply for a FHA loan, the banks are going to look into your income, your assets, credit history, as well as your FICO score.  Each situation is going to vary, and you will find that every person has a different story, so it doesn’t hurt to head to a bank.  What you will find out is that everyone has their own scenario, and just because you have $20,000 in student loans, it doesn’t mean you’re not going to get approved.

Most people know when it’s time to buy a house.  Don’t go out, and purchase a home if you can’t afford one.  Instead, you will want to make sure that you have at least 3% to put down on your home, and enough socked away for a rainy day.

A FHA loan is a great alternative to look into.  Check it out, and see if it’s something that you may want to consider for your next home purchase.