Comments on: Home Loan Modifications Could Ruin Your Credit

By: K.

K. — Wed, 14 Sep 2011 12:34:27 +0000

I requested a loan modification from my bank and finally received one after almost two years. I was running basically one payment behind when this started however I was paying.
I was talked into as modification by a chase rep. I later found out that my credit score took a huge hit after it was finally done after applying a fourth time.
The bank was reporting non payments or late payments because of the partial payments. I had my score dip so low I could not afford to refinance anywhere else. They then tacked on the difference to the end of the loan and I am back where In closing after paying on a loan for 8 years I am now in a loan where I will pay another 40 years (at a reduced interest rate and monthly payment of course) however I do not think my credit score will ever recover. I also have a second mortgage with the same bank. I feel they should have left off the difference and we go from there. I plan to pay this off as fast as I can (even if I need to get another job).
I just need to write and say one should really weight the pros and cons of a modification.

By: Jeff W

Jeff W — Wed, 28 Jul 2010 07:01:15 +0000

What’s really sad about this is that many people like seniors are already hurting for money yet they need to get a loan to cover home modifications for things like wheelchair ramps and stairlifts. They really can’t afford to take another hit on their credit score.

By: Ina@Nollywood

Ina@Nollywood — Sat, 03 Apr 2010 11:33:34 +0000

I am excited and thrilled on our newly purchased property. House really need improvement that will really break my credit…. anyways, I make sure that I have money to pay or asset to generate money for my payment before I jump into borrowing money from bank of anybody.

By: Crista Guler

Crista Guler — Mon, 29 Mar 2010 00:35:28 +0000

With loans there is always the danger of loosing your key assets that you may have put down as collateral for the loan. As a consequence of borrowing money from any financial institution chances are the organization will be breathing down your neck every time the repayments are not done on time and this is enough to drive any one crazy.

By: Hopkinton MA Real Estate

Hopkinton MA Real Estate — Mon, 22 Mar 2010 00:01:05 +0000

I find it amazing that quite a few Realtors do not let their clients know the complete picture when it comes to loan mods. You also see the same thing happening with short sales. Every client should be given the pro's and con's so they can make an informed decision. .-= Hopkinton MA Real Estate´s last blog ..Testing a Massachusetts Well When Buying a Home =-.

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By: Richard@How To Videos

Richard@How To Videos — Tue, 10 Nov 2009 13:49:01 +0000

What these credit companies do on the back-end is not right. Your friend simply modified his loan with no idea that adverse consequences awaited him. This system needs more checks and balances! .-= Richard@How To Videos´s last blog ..How To Get A Small Business Loan =-.

By: Chas@Las Vegas Real Estate

Chas@Las Vegas Real Estate — Sun, 08 Nov 2009 01:50:40 +0000

Sundream has it right. I don't see people not being effected by loan modification. Only banks and big business can make huge financial mistakes and walk away from them scott free. .-= Chas@Las Vegas Real Estate´s last blog ..First Time Home Buyer Tax Credit Extended =-.

By: JaysonNHS

JaysonNHS — Fri, 06 Nov 2009 21:42:14 +0000

@Matt – I agree with you both! Unfortunately, the modifications aren’t doing much to help avoid foreclosures/short sales. I think the re-default rate was up near or above 50%. Apparently the modifications weren’t enough.

@Shaunda – thanks for stopping by. The modification is just misleading, that’s really it. I think they should be more upfront with the negative effects it can have on credit. Do you know his email? I’d like to shoot him a few emails about other things

By: Shaunda

Shaunda — Fri, 06 Nov 2009 20:07:58 +0000

Obama knows everyone is having hard times now. It shouldn’t reflected on anyone’s credit if they were to get a modification. I think that is very wrong. People trying to get out of the hole.Still be left there after they report that shit to their credit. Everyone should write to him or post notes to his email about that. How he knows its ruff now, but not helping out like he said by messing peoples credit up just to get lower payment. WRONG