5 steps to a successful loan modification

Get financially literate
Get financially literate

Housing counselors have empathy for clients. But there is an undercurrent of frustration, too.

"The key to this process is they need some kind of financial literacy training," Jones says. "Yes, we get a workout, but counseling should not stop there."

Borrowers need financial coaching, with frequent checkups, Jones says. ESOP surveys its mortgage-workout clients at three months, six months and one year afterward, "just to see if they're staying on track," Jones says.

"And you'll be surprised at what we call 'frequent fliers,'" Jones says. "We get them out of trouble and the next thing you know, here they come again."

Financial literacy, Jones says, is the key to "changing that frame of mind that says, 'I see it, I want it, and I can get it, so I'm going to get it.' That whole idea has to change."


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
30 year fixed 4.29%  0.01 4.30%
15 year fixed 3.23%  0.06 3.29%
5/1 ARM 3.33%  0.12 3.45%
View Rates in your areaSearch

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.


Polyana da Costa

Borrowers get $2.5B from Citi

About $2.5 billion of Citi's $7 billion settlement will go to consumers  ... Read more

Partner Center

Connect with us