Posted on: 31st Jul, 2009 08:29 am
Hi,
Last Jan I started the process of "loan modification" with my mortgage co. They told me they would not consider modification unless I was in a "repayment plan". The repayment plan gave me smaller payments for a short time, while the modification was being worked out. What they DIDN'T tell me was that these smaller payments would be reported to credit bureaus as LATE pmts. I have not been late on a single pmt they've asked for, the letter they sent me about the smaller pmts says nothing about them being reported as late either. They have now destroyed any possibility of refinancing with another lender b/c I now have credit reports showing me as 120 days late on mortgage.
Frankly, I do not want this house anymore, I haven't lived there in 3 years, and the renters I have never pay on time. Plus I am now 8 months into the "modification" process with no results in sight...the agent I'm working with keeps giving me sad stories about how the rules keep changing.
What would anyone suggest? I am strongly considering requesting a deed in lieu...I don't want the house, and my credit is already shot thanks to their "oversight" in not telling me all the details of their repayment plan.
Anything would be appreciated!
Last Jan I started the process of "loan modification" with my mortgage co. They told me they would not consider modification unless I was in a "repayment plan". The repayment plan gave me smaller payments for a short time, while the modification was being worked out. What they DIDN'T tell me was that these smaller payments would be reported to credit bureaus as LATE pmts. I have not been late on a single pmt they've asked for, the letter they sent me about the smaller pmts says nothing about them being reported as late either. They have now destroyed any possibility of refinancing with another lender b/c I now have credit reports showing me as 120 days late on mortgage.
Frankly, I do not want this house anymore, I haven't lived there in 3 years, and the renters I have never pay on time. Plus I am now 8 months into the "modification" process with no results in sight...the agent I'm working with keeps giving me sad stories about how the rules keep changing.
What would anyone suggest? I am strongly considering requesting a deed in lieu...I don't want the house, and my credit is already shot thanks to their "oversight" in not telling me all the details of their repayment plan.
Anything would be appreciated!
you need to discuss it with your lender strongly. they can not report it to credit agency as late payments. repayment plan is agreed plan in which you will pay less & compensate it by paying more later on.
you can show modification letter & payment receipt to credit agencies as a proof and get it corrected. once it is corrected you can easily apply for refinance to other lenders
you can show modification letter & payment receipt to credit agencies as a proof and get it corrected. once it is corrected you can easily apply for refinance to other lenders
Hi kew,
It is true that you credit would get effected if you do not pay the actual amount to the lender. You can negotiate with your lender and check if he can report them as "paid as agreed".
As far as deed in lieu is considered, you can definitely apply for it. If the lender agrees to it, you'll have to transfer the property to him. He would sell off the property to recover his dues. The deficient amount would be forgiven by the lender. However, this may lower your credit score by 250 points.
Thanks
It is true that you credit would get effected if you do not pay the actual amount to the lender. You can negotiate with your lender and check if he can report them as "paid as agreed".
As far as deed in lieu is considered, you can definitely apply for it. If the lender agrees to it, you'll have to transfer the property to him. He would sell off the property to recover his dues. The deficient amount would be forgiven by the lender. However, this may lower your credit score by 250 points.
Thanks