Posted on: 05th Aug, 2007 08:08 pm
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?
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.
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.
I am really sorry to hear about passing away of your husband.
"I will be asking for a forbarence on this 2nd home. Will this affect my credit?"
As you are not on the mortgage your credit will not be affected. But as your husband died and the mortgage was in his name the lender may ask for the mortgage to be paid off.
Is the lender aware that your husband passed away?
What you can do is sell the second house and pay off the lender.
"I don't understand how they can hold me responsible for a mortgage that I did not qualify for in the first place?"
You are not being held responsible for the mortgage but as the houses were kept as collateral for the loans if payments stop, lender would have the right to sell the houses and recover his dues.
"I can pay the home that I live in but no the second home,"
As you are in a position to make payments on the first mortgage, ask the lender about the possibility of it being refinanced in your name.
Miller
"I will be asking for a forbarence on this 2nd home. Will this affect my credit?"
As you are not on the mortgage your credit will not be affected. But as your husband died and the mortgage was in his name the lender may ask for the mortgage to be paid off.
Is the lender aware that your husband passed away?
What you can do is sell the second house and pay off the lender.
"I don't understand how they can hold me responsible for a mortgage that I did not qualify for in the first place?"
You are not being held responsible for the mortgage but as the houses were kept as collateral for the loans if payments stop, lender would have the right to sell the houses and recover his dues.
"I can pay the home that I live in but no the second home,"
As you are in a position to make payments on the first mortgage, ask the lender about the possibility of it being refinanced in your name.
Miller
"I can pay the home that I live in but no the second home,"
You can pay for the mortgage on first home but would you be able to qualify if the lender asks for the loan to be refinanced in your name?
You can pay for the mortgage on first home but would you be able to qualify if the lender asks for the loan to be refinanced in your name?
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?
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?
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.
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.
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.
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
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
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
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
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.
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.
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
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
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.
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.
i suppose the "foreclosure fees" they're alluding to are fees already expended, not proposed for the future.
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.
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