loan modifcation

[lsk]

What is the name of your state (only U.S. law)? Missouri

I am in the process of a loan modifcation with my lender. They could not tell me what impact this would have on my credit. Does anyone know? I have not missed a payment but have been 5 days late. Doing this due to job loss.

 

[bigarmin88]

What is the name of your state (only U.S. law)? Missouri

I am in the process of a loan modifcation with my lender. They could not tell me what impact this would have on my credit. Does anyone know? I have not missed a payment but have been 5 days late. Doing this due to job loss.

You only can get a loan modifcation only if you are 45 to 90 days behind payments.

 

[lsk]

Not true. Lender is working with me becaues of job loss. fortune to have found another job but for less then I was making. So to no fault of my own I do meet the quide lines for loan modifcation. They have reduced my payments. Not late and this is in hopes of not becoming late. They are reducing my intrest rate from 6% to 2% for five years and then after that will increase 1% up to 5%

 

[LOST V3GAS]

What is the name of your state (only U.S. law)? Missouri

I am in the process of a loan modifcation with my lender. They could not tell me what impact this would have on my credit. Does anyone know? I have not missed a payment but have been 5 days late. Doing this due to job loss.

Check out this article from the Bloomberg news:

Cheaper Mortgages Trigger Lower FICO Scores for On-Time Payers - Bloomberg.com

The person in the article was in a similar situation and his FICO dropped 120 points overnight. I haven't been able to get a straight story from my lender, the govt run HOPE hotline, credit agencies, or Federal Trade Commission. Everyone defers to someone else. In my situation, I'm trying to prevent the lender from reporting anything to the credit agencies but I don't know if it will work. Have a look my post in the forum (just posted an hour ago) and you can see what I'm trying.