Compare Mortgage Quotes

bky · Joined: 02 Jul 2009 Posts: 4 2.26 Dollars($)

If I modify my loan, is it going to affect my credit?
It is going to show in my credit report as negative? what about my score?
Any ideas please!

jameshogg · Posted: Mon Jul 06, 2009 10:30 pm Post subject:

Hi bky,

A loan modification will not effect your credit score or your credit report negatively. In this process, the lender will reduce your interest rate and increase your term of loan payments so that you are able to pay off the loan.

Thanks

Guest

YES a loan modification WILL effect your credit score.

Embarassed

I know because i've spent the last 4 months trying to get a modification. I kept having to update papers and resubmit papers. Then finally just this week, when all the paperwork was in line, they said they were required to advise me that during the modification process and the trial modification period that my account would be reported as "not paid as agreed". Chase is who I have my mortgage through. They said it would not effect me as much as a forclosure but it WOULD be a negative hit to my credit. Worried I did a bunch of reasearch and found that it is a serious hit to your credit. I was not behind on my payments. I was simply searching for a way to compensate for lost wages and ever increasing utilities. After finding this out I called then wrote a letter to my mortage company withdrawling my application outlining the above reason. Note: in some cases Modification hits your credit harder than a bankruptancy!
ouch. this posting would not let me attach the link but i do a google search on "borrower beware a mortgage modification will crush your credit"

Hope you didn't modify already!

christinehynes · Posted: Tue Jan 12, 2010 3:01 pm Post subject:

Like Lovell said, a loan modification will affect your credit. Generally you will be placed in a trial loan modification period, during which the banks will report that you are making partial payments. These partial payments will affect your credit, although the hit is far less severe than a foreclosure and you still get to keep your home.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

While damage to your credit score isn't good, if the Mod allows you to keep making your payments then it's probably still worth doing. If you keep paying the loan installments on time this will build your score up again over time anyway.

rita2 · Joined: 23 Apr 2010 Posts: 286 51.03 Dollars($)

Hi,

Yes if you go for a loan modification it will effect your credit score. In loan modification the money which you pay is kept in an unapplied account as it will be in a trial loan modification period, till the time enough money is in the account to make contractual payment. Thus the account will be considered deliquent and hence will effect the credit score.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1