The loan mods seem like a Great Deal,... but the answer is YES,.. the trial payments are considered late until such time as the modification is complete. The paperwork for the trial payments clearly states that those payments are considered to be late until such time as the modification is complete.

If you are going to lose you home without the modification,.. then do it,.. if you are able to make the payments you agreed to,.. don't

YES! Actually it does effect your credit score during the application process. If you current on your loan and agree to the modification trial period payment (less than your regular mortgage) your credit score drops because you are making "partial payments" We were current NEVER late and entered into the modification process to make our payments more affordable. We made the 2 of the trail montly payments until we realized this and then made or regular payment. In the end we cancelled the modification process. We pulled our credit score and it went from a 700 to 500. Unless your score is low to start and your are behind any way. do not do this!!!!

PEOPLE! THE ANSWER IS YES. THIS WILL YOUR LOWER CREDIT IF YOU ARE ACCEPTED. SIMPLY APPLYING FOR A HOME MODIFICATION WILL NOT, BUT ENROLLING WILL. KEEP IN MIND- THIS PROGRAM IS FAILING, AND ONLY A VERY SMALL % WILL BE ACCEPTED.

Loan Modification can mean a solution to a financial problem. Many people find themselves in a hard time to pay the mortgage. Some are lucky enough to know before they have depleted savings and retirement plans. Loan modification is a permanent solution to lower your monthly payments to something affordable. As such it is a viable option for a distressed homeowner. Once the loan modification is applied it is report current. To get more details please see http://www.championfinancialwork.com/fastloanmodification

A loan modification does not affect your credit if you are currently on current on your mortgage.

This seems to work best for those who have lost a job but were able to keep the payments current and now have a new job that pays less than the prior job. Which means because you do not have any deliquent balance there is nothing to add to it at the end of the 5 year period. My guess this solution probably only works for around 20-25% of the folks in this situation.

Dear Rich,

Not necessarily. A modification in and of itself does not hurt your credit, however, missed mortgage payments do affect and harm your credit standing. I suggest you contact my rep at AALMG through their website, and he will be able to provide you with any information you may need.

http://www.aalmg.com/contact-us.php

Good Luck!

No a loan modification doesn't hurt your credit. And you don't have to been in arrears to recieve a modification. The modification is usually just a different payment option. For example the lender may offer you a lower rate fixed for 5 years and put your delinquent balance on the back of your principal balance. Unfortunately we have no idea if in 5 years the property values will support the increase in your principal. Therefore you may end up in the same bad situation especially if you need to sale your home because you can't afford it. Plus your payment will increase drastically at the end of the five years putting you in the same position you are in now. Which makes me wonder why they offer these modifications knowing there is a possibility of crashing the housing market again in 5 years.

Ask about the Housing Rescue Bill. Please, Please do as much research as possible before you accept any loan. If you don't like an offer turn it down. DO NOT put yourself in another bad situation.

Despite what people tell you, Short sales do affect your credit negatively. But if your payments are already behind then your credit is hurting anyway. Don't be afraid to ask for help. Good luck.

NO NEVER, NEVER EVER!

Hey Kids, a Loan "Mod' is part of a relief plan or work out for a loan seriously in arrears’. Ahhhh work out, seriously in arrears. ...sooooo delinquent.....ummmmm derogatory credit already reported so question is rhetorical.

Damage is already done!

Why by the way would anyone want to hire or negotiate a Rip Off Plan , (I mean work out plan?). Under the new legislation for lender ethic's and HUD mandates for foreclosure solutions, THEY MUST OFFER YOU A WORK OUT PLAN. And Here it is critters.

“Take and bake all the accrual due and divide out by so many months. Add it to the current payment So a $1,000 payment goes to $1,250 if you have $1,000 in arrears and were to pay it back over 4 months. Ahhhh I can’t afford my current payment so let me think about this ingenious idea.

If you can’t afford the loan due to an adjustment make a claim for predatory lending. Get your loan cut in half. Ahhhh now that's a cram down modification program I like!
http://www.borrwerhotline.com admin@borrowerhotline.com

Rich
What affects your credit standing is whether or not you are current.
In most cases a lender will be looking at your ability to pay and the reasons why now you cannot afford to pay the mortgage for a loan that originally your were qualified.

As long as you are current, you should be fine. A loan mod is better than a short sale or a foreclosure.

It really depends on your personal situation. If you are behind in payments now or if you are preparing for your payments to jump up at a later time.

Yes but how bad depends on how the lender reports it to the bureaus and what was negotiated.