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whateverroig · Joined: 28 Jul 2007 Posts: 5 4.44 Dollars($)

I do not qualify for a mortgage right now because my income is to low due to student loans, and I also take out 15% of my salary in a 457 retirement plan, and health insurance. I have good credit no late pay around a 660. He took the mortgages on our primary home and also a secound home, he also had good credit. He has passed away leaving no insurance on these homes. I can pay the home that I live in but no the second home, I will be asking for a forbarence on this 2nd home. Will this affect my credit? I had a lender look at my credit and it does not show that I have a mortgage. I don't understand how they can hold me responsible for a mortgage that I did not qualify for in the first place?

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hello Whateverroig,

When you plan to go for forbearance on your second home, it will actually help to protect your credit by preventing the loan from being reported to the credit agencies as delinquent. Though it will appear on your credit report, but will have no negative impact on your credit score.

But, you must understand that on the death of your husband, all responsibility for the loan payments, by default, will come to you, being the surviving spouse.

miller_st · Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)

I am really sorry to hear about passing away of your husband.

Guest

Guest

I applied for a loan mod last month with Chase. I was told that my payments will be reduced from 1585 to about 1387. My interest rate will go from from 6.78 to 5.25. I am a substitute teacher and I will not have any income after May. After telling the Cxhase representative this he informed me of a special fobearance, were I wouldn't have to pay my mortgage until August which is when school starts back.

I want to know if I take the forbearance will my credit be negatively affected. The represenbtative told me that forbearance nor loan mod protects credit. Is this true?

adonis · Posted: Mon Apr 27, 2009 12:58 am Post subject:

Hi KM,

Yes, it's true that neither loan modification nor forbearance will negatively affect your credit score. However, the past due payments will be added to the mortgage and you'll have to clear it off.

Guest

I called Chase to get a loan modification, I was informed they did not do modificationtions. So, I was offered a forbearance for 4 months only. No where in the Forbearance Contract did it say it would go against my credit. Can I send this letter to the credit agencies, to try to get this off my credit, since I did not know this would effect my credit. And why is Chase just giving Forbearance to homeowners, when they are supposed to be evaluating them to see if they can get a loan modification. I have been trying to get one for 4 months.

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

LT

I think based on the evaluation that the bank does they may offer different optiosn sofr different customers.

Good luck and feel free to ask

smithsussane · Posted: Wed Jun 10, 2009 10:49 pm Post subject:

Hi LT!

Welcome to forums!

A forbearance will not effect your credit score in any way. The lender will either reduce or suspend your payments for those 4 months and will report it to the credit bureaus. Chase has certain rules and regulations which can be different from other lenders. May be it is a part of their rules not to offer a loan modification.

Feel free to ask if you have further queries.

Sussane

gmakerley · Posted: Thu Jun 11, 2009 9:40 am Post subject:

i find it to be most surprising that chase would not offer a modification. is this a certainty?

i'm no expert as far as the documentation rendered in a forbearance situation, but there may not need to be a specific reference as to how the credit bureaus will receive information, nor to what information it is they'll receive on the loan.

Guest

I received a packet from First Horizon detailing a forbearance agreement, and they state:

"We will continue to report the status of your loan as it existed prior to this forebearance agreement monthly to all respective credit reporting agencies for the duration of this Agreement and thereafter. Accordingly, for the duration of this Agreement and thereafter, we will report your loan as delinquent if your loan is not completely current under your loan documents, even if you make timely payments to us in accordance with the Agreement. This Agreement does not constitute an agreement by us to waive any reporting of the delinquency status of your loan payments."

My processor at First Horizon told me the forbearence will absolutely cause my credit score to be lowered.

On a side not, i have read many bad things about First Horizon over the last hour. Should i be worried about being forced to foreclose even if i make my balloon payment at the end of the forbearance term?

Also, in the "Addendum to Forbearance Plan" it states that "Should you be offered one of the above options [ Mortgage Modification or Partial Claim Advance], please be advised that any foreclosure cost and fees will be collected as part of the agreement." What foreclosure cost and fees? I thought i did this forbearance to avoid foreclosure and thus the associated fees.

Its a three part question/comment. Thanks!

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Dave12341

I think most of these statements are based on, IF. So if you do this, this coudl happen.

Probably some of the attorney's on this foum can clarify this.

Good luck and feel free to ask

Guest

Where should i go to seek the advice of the attorney's in this forum? I am also wondering if i should add (and how) anything to the end of the forbearance agreement, stating that no penalties can be added... or anything else.

gmakerley · Posted: Mon Jun 22, 2009 11:26 am Post subject:

dave, you can count on any additions that you may make to the agreement would be null and void. first horizon and any other lender will take the same stance on this. frankly, in seeking legal advice, i would suggest you search in your specific area for a real estate attorney who would know the details of your state law. you may find someone on this forum who'd be aware of those laws, but a local lawyer is typically going to be your best bet.

i suppose the "foreclosure fees" they're alluding to are fees already expended, not proposed for the future.

Guest

Banks will not go through the process of a loan modification unless you can prove that you can still qualify for the even lower payments. They dont want to modify a loan only to have a borrower come back w/i another 6 months asking for another modification or worse, foreclose on the property anyways. Forbearance is the best way for them to offer a temporary solution, as in the case of a job loss.

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