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 joycefleischer
Joined: 17 Nov 2009
Posts: 1
1.25 Dollars($)
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 Posted: Tue Nov 17, 2009 11:52 am Post subject: will a loan modification lower my credit score? |
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| i am currently 2 months behind on my mortgage. |
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jenkin7
Joined: 04 Jun 2007
Posts: 4309
Location: Hawaii
681.19 Dollars($)
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| Posted: Tue Nov 17, 2009 11:46 pm Post subject: |
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Hi joyce,
A loan modification does not necessarily affect your credit scores negatively. It is just an alternative repayment plan that helps you pay off your mortgage. If you make making your payments on time as per the modified repayment plan, your credit should be fine. However, what does affect your credit negatively is late or missed payment. Since you are 2 months behind on your mortgage, it has already affected your credit. If you continue to get behind on the mortgage, it will have a considerable impact on your credit scores. |
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marklavender1
Joined: 13 Sep 2009
Posts: 120
-0.14 Dollars($)
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| Posted: Wed Nov 18, 2009 4:13 am Post subject: |
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hi,
it will not hurt your credit score initially, but being you must miss payments in order to qualify the missed payments themselves will have a negative effect on your credit score.
Some banks which provide loan modifications will also provide a means of earning back that loss of credit score for paying for the extra service with them instead of someone else. Usually this would require you to pay your fees on time over a period of months then they will provide you with some positive feedback on your credit score |
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