How does a Loan Mod affect credit if you have always been currentHave always been current on blended 80/20 at 8.5% with CitiMortage as the only servicer. This was only loan I could get 2.5 yrs ago due to BK/forclosure in past and had prepay penalty due to expire in May 2010. I have always been working to prepare for a refi, but looking at sales in the area I am beginning to doubt we will be able to appraise at a value that will allow even an FHA refi. Loan is not owned by fannie/freddie. I talked to CitiMortgage about a possible Loan Modification under the current HAMP plans, and they said I do qualify, and will reduce interest to 7.35% which take pmt from $2250/mo down to $2070/mo and cannot refi out or modify for 12 months. This is not the ultimate answer, but would help my finances in the meantime.Question is if anyone knows how the mod will affect my credit immediately and after the 12 mos is done. Citi says they will not report any negative info, but that the mod will show up on my credit report as a legal requirement. If I never miss any payments on anything, how bad of a hit will this really be? Nobody seems to know since most Mods are doen for those already way behind so they don;t really care abou the credit hit, since theirs is already damaged.October 24 200900YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.