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Answers (6)
- Christine Hynes, "LoanModSpecialist"
- Contributions:543
There are new guidelines published recently for the hits to credit, so wanted to update you on them.
Once you accept a trial mod, your credit is definitely affected, read the two articles below. Why do you mention a loan remod, did you already modify your loan earlier?? Most likely you can't refi or purchase until you credit report shows better scores. The 4 month trial mod may put your credit showing 90 day late, so you may have to wait 2 years for either.
Also, why are you modifying if you could refinance your loan? Usually when a professional assess your situation they first look at a refi, and then the mod.htttp://www.callalms.com/ ... fication/
htttp://www.callalms.com/blog/2009/new-guidelines-affect-loan-modifications-credit-scores/
http://www.callalms.com/blog/2009/what-is-a-trial-loan-modification/
Once you accept a trial mod, your credit is definitely affected, read the two articles below. Why do you mention a loan remod, did you already modify your loan earlier?? Most likely you can't refi or purchase until you credit report shows better scores. The 4 month trial mod may put your credit showing 90 day late, so you may have to wait 2 years for either.
Also, why are you modifying if you could refinance your loan? Usually when a professional assess your situation they first look at a refi, and then the mod.htttp://www.callalms.com/ ... fication/
htttp://www.callalms.com/blog/2009/new-guidelines-affect-loan-modifications-credit-scores/
http://www.callalms.com/blog/2009/what-is-a-trial-loan-modification/
- ROY Mason, "REALTORROY"
- Contributions:194
- Christopher Wilson, "The Mod Squad"
- Contributions:177
30% of your credit score is based on payment history, 35% is based on your revolving debts... Most likely, they are reporting these as lates. Not a big deal. If you get a modification at the expense of your credit and keep your home- then that is a fair sacrifice. We offer a credit deletion program to many of our modification clients after we have modified their mortgages. Everything but open ch13 BKs can be deleted. Basically, no creditor correctly reports the data to the three credit bureaus. The fair trade credit reporting act is about two phone books thick..When they do not follow the letter of the law, then they are forced to remove these reports on your credit. Its effective and very useful, especially in today's economic situation
So, say after you have solidified your mortgage, seek out a credit program that will wipe out your lates. You should see a significant rise in your credit score within 6-12 months.
So, say after you have solidified your mortgage, seek out a credit program that will wipe out your lates. You should see a significant rise in your credit score within 6-12 months.
- savalencia
- Contributions:100
For me my trial payments showed as derogatory on 2 of the 3 credit reports... To refi you will need to LTV of no more than 105%, may be too late though if you are already in trial payments... I'm thinking if you could qualify to refi they wouldn't have put you in a modification??? Right? In order to get a modification you are supposed to be planning to stay in your home and have a hardship not able to pay your current mortgage... So will you be able to buy another home someday? Sure. Once the modification is complete there is no rules on selling your house. Although if you get a super low rate (like I did) I don't plan on moving any time soon because I can't sell my home for what I owe on it and now have affordable payments...
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
There's plenty of good information on the web. Google, google, google! ... Best wishes, Rudi
- Christine Hynes, "LoanModSpecialist"
- Contributions:543
The only things that effect your credit for the most part are late payments when it comes to your mortgage, also as well as any other creditors. If you credit is good and your income is good to handle the debt ratios you can qualify no problem. If you are in the middle of a trial modification you need to contact whomever is doing your modification to discuss the refi. Are you upside down, did you try to qualify for the refi before, why did you go the loan mod route and not refi?
Remodification
My mortgage right now is with Wachovia and it is transferring to Wells Fargo.
I am under the "trial payment period" for my loan remodification until end of this year (4 months).
Will this affect my credit score?
Can I purchase another home? If so, how soon can I buy?
Can I refinance instead of remodify? Is it too late?
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