Posted on: 29th Jul, 2009 05:47 am
I was approved for a forbearance from October - Dec 2008. My mortgage company then sent me paper work to review my financial situation again to determine whether I would qualify for a repayment plan or a loan modification. It took them 3 months to send me the paper work. I was approved for both the Forbearance and a Loan Modification but they reported me deliquent for 6 months to the credit bureaus. Am I wrong to think that this should not have affected my credit? I had never been late on any of my payments.
Hi,
As far as I'm aware of, forbearance does not affect your credit score. Under forbearance, the lender actually postpones the loan payments helping you to avoid a default on the loan. It is also not reported to the credit bureaus. So, I don't understand why they reported you delinquent for 6 months. I think you should first talk to the lender and demand an explanation as to why they reported you as delinquent. If required, you can dispute it with the credit bureaus and get it removed from your credit report.
As far as I'm aware of, forbearance does not affect your credit score. Under forbearance, the lender actually postpones the loan payments helping you to avoid a default on the loan. It is also not reported to the credit bureaus. So, I don't understand why they reported you delinquent for 6 months. I think you should first talk to the lender and demand an explanation as to why they reported you as delinquent. If required, you can dispute it with the credit bureaus and get it removed from your credit report.
I was never ever late but I was getting ready to go on Maternity Leave with no pay so I contacted my mortgage company to see what they could do? The very 1st thing I asked was whether it would affect my credit. They told me no. So I agreed to do it. They gave me 3 months of no pay and told me at the end of Dec 08 I'd have to re-fill out paper work and thats what I did. Because they were so far behind with modifications and repayment plans it took them til March to send me my modification agreement. I called every month and they told me to hold off and wait for the paper work and it wouldn't affect my credit. Now I've left message after message and they won't return my phone calls.
Hi astamper!
Welcome to forums!
They have reported the defaulted loan payments to the credit bureaus. Forbearance itself won't effect your credit score but the defaulted payments would effect it. It would have been better if you could have kept on paying the mortgage dues until they approved your forbearance and loan modification.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
They have reported the defaulted loan payments to the credit bureaus. Forbearance itself won't effect your credit score but the defaulted payments would effect it. It would have been better if you could have kept on paying the mortgage dues until they approved your forbearance and loan modification.
Feel free to ask if you've further queries.
Sussane