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slr3975 · Joined: 11 Nov 2009 Posts: 2 1.59 Dollars($)

How many points will my credit score drop during my Loan Reduction period? I have three months of loan reduction modification to go through. My mortgage company reduced the monthly payment of my mortgage in half and said to pay that amount for 3 months, then they would modify my mortgage amount. My credit score is 760 and curious how many points two to three months of late mortgage payments will hurt me? The mortgage company told me it would show up as late, but as soon as they redo our mortgage it will show as up to date.

Thanks.

smckaybiz · Posted: Wed Nov 11, 2009 7:59 pm Post subject:

Hello slr,

If it ends up showing as 90 days past due then I would have to say that your score could drop around 50 points. Once it is showing as up to date it shouldn't take too long for you to see your score start to come back up. In the long run it shouldn't hurt you too bad if that is one of the only negatives showing on your credit reports. Although it may throw up a red flag if you will be seeking any new loans in the near future.

cupplesjonathan71 · Joined: 04 Nov 2009 Posts: 82 0.00 Dollars($)

Hello Sir,

Unable to understand why they are doing so. you are making payment as agreed. Have you received any written communication about it?

adonis · Posted: Wed Nov 11, 2009 8:41 pm Post subject:

Hi slr,

A loan modification does not always reduces your credit score. If you are already delinquent on your mortgage payments and then request for a loan modification, then the lender would report your past due payment to the credit bureaus. This would effect your credit score and reduce it by few points.

slr3975 · Joined: 11 Nov 2009 Posts: 2 1.59 Dollars($)

Yes, that's the only issue I've had on my credit. So hopefully I'll be ok in a year and can build back up my credit to 760. Never been late on a mortgage payment at all, just had to go late while on this reduction program on purpose in order to qualify for the modification. Reason is because my wife lost her job, so this will help tremendously regarding the modification and after my wife finds a new job we'll be in even better shape. So actually this was pretty good timing.

Thanks for all the feedback!

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How Many Points Will My Credit Drop