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It does affect your credit I was on a forebearance for six months, your mortgage shows unpaid for those six months on your report. Thankfully I was offered a loan modification, and it will show current on my credit report once the paperwork is complete

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U.S. Bank will not offer a loan modification based on this same explanantion. I was told I cannot request a loan modification because of loss of job. They will not modify the loan if I can't prove income because of the same reason listed above. They have approved me for a loan forbearance for 4 months. But I don't know if this will negatively affect my credit or credit score or if I will have to pay back the 4 months immediately following the 4 months? The bank if VERY hard to talk to and not really much help. They say "I don't know" to almost every detail question I have esp. regarding the credit questions. I have never been late on a mortgage payment but it's is becoming very hard to scrape the payments together now since I have been out of work for several months so I asked initial for the loan modif. Does anyone know if the Forbearance will afffect my credit? I may need a new car down the road and don't want to mess up my credit for this if I do the forbearance. HELP!

gmakerley · Posted: Fri Aug 27, 2010 3:55 pm Post subject:

Lois, let's be frank. If you are in such a struggle to make the regular mortgage payments, surely you realize that if you miss a payment due to the struggle, your credit will be hampered. Given that, for someone in your shoes, I have a feeling that forbearance might just be the best bet to get you into a position where the mortgage becomes affordable again.

Consider...while in forbearance, you owe no payments. In the meantime, we pray that a new job comes along with sufficient salary as to get you back on track with obligations. I can't swear to how they'll treat your forbearance in reporting to credit bureaus, but inasmuch as they will presumably be considering your account to remain current despite no payments, that ought to be the report they make.

Then, once your regular payments begin again and you have gained new employment, if you need a modification, it will be something you'll be in a better position to qualify for.

They are vague because they haven't had these issues over the years. Everyone in the industry is in learning mode, and most of that learning comes as they go along. Mistakes are made, caught and then corrected, and the learning process goes on and on. Don't be put off by their lack of knowledge - nobody knows what to do in every case, but lenders are in the position of trying their best to get these things resolved for everyone's benefit.

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I do not qualify for a mortgage therefore my husband takes o