Home Selling in San Mateo>Question Details

mqn321, Home Owner in San Mateo, CA

What does getting a loan modification do to your credit score?

Asked by mqn321, San Mateo, CA Fri Sep 27, 2013

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4
Flavio Tejada, MBA,Realtor/Own’s answer
Hi m,
it may negatively impact your credit score...but so will a short sale...
are you thinking about short selling? you may be interested in this article
http://www.trulia.com/blog/flaviotejada/2013/09/mortgage_for…

good luck!
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Flavio Tejada, MBA-Finance, Realtor, Broker/Owner
(415) 305-2958
0 votes Thank Flag Link Mon Sep 30, 2013
Yes it will have an impact, however the extent really depends on the lender. As the others said, it depends on how they report it to the credit bureaus, but also it depends on whether or not you become late on your payments.

A lot of times, the lender will require that you demonstrate hardship in making the current payment in order to grant you a modification. Sometimes they won't even talk to you unless you are behind and facing foreclosure. This has the most serious implications to your credit.

What I would tell you is this: if you are facing a difficult situation and you need a modification then you shouldn't be worried about your credit score. Unfortunately you will probably have to choose what is most important to you (keeping your home or maintaining your credit score), and you cannot have your cake and eat it to.

I hope this helps. Best of luck!
0 votes Thank Flag Link Fri Sep 27, 2013
Yes they have a negative effect on your credit report. Are you currently looking to refinance? The only way to know for sure is to get a credit report.

Alex Greer
Loan Officer
NMLS #1056079
http://www.TheMortgageOutlet.com

408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Fri Sep 27, 2013
Loan modification can definitely have a negative impact on your credit score .At least initially.Depending on your lender , they may not report the decrease in payment to your credit report.Your credit report can appear as though you are not making the full payment.Some times this negative affect can be corrected by requesting your bank modify its credit reporting procedures . Again , this negative impact may or may not occur with all banks.But I have seen it before.

If you have any further questions , please call

Taj Weldon
Realtor
209-740-4176
DRE 01816152
0 votes Thank Flag Link Fri Sep 27, 2013
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