Posted on: 16th Jun, 2009 10:37 am
I have excellent credit and am six years into a 30 year fixed mortgage. I have never missed nor been late on my payments. I was recently laid off and decided to explore a workable solutions option that my motgage company was offering. They are offering me an option of reducing my payments by 20% given my payment history and my current financuial situation. I asked if thiswould affect me adversely from my credit rating standpoint. And they said it would only show that I was in a payment plan with my mortgage company. My question: Will this have any adverse affect on my credit score? I ask because I have worked very hard at keeping my credit at a top level and wouldn't want any help that would hurt me. Your response wuld be greatly appreciated.
Hi Paulevans!
Welcome to forums!
A loan modification will help you in getting a better payment plan in order to pay off your mortgage dues. It won't help you in selling off the properties. If you want to sell off the property and want to avoid paying the deficient balance, then you can apply for a deed in lieu of foreclosure. However, this will lower your credit scores by around 250 points.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
A loan modification will help you in getting a better payment plan in order to pay off your mortgage dues. It won't help you in selling off the properties. If you want to sell off the property and want to avoid paying the deficient balance, then you can apply for a deed in lieu of foreclosure. However, this will lower your credit scores by around 250 points.
Feel free to ask if you've further queries.
Sussane
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