Loan Modification – Homeowners credit ratings take a hit

houseYou would think that Homeowners throughout this country and even here in Lakeland, FL these days getting loan modification approved, would make them a happy camper by keeping their homes. I thought so too until I read the article here that I want to share with you.

“Unfortunately, the “Big Three” credit bureaus – Equifax, Experian and TransUnion – have issued new guidelines that allow lenders to report new mortgage loan modifications as “partial payment status,” a designation that could lower an individual’s credit score by more than 50 points.”

In my opinion, this is the most ridiculous guideline I’ve read, while wondering what are they going to do next. What impact does it have for your future credit buying and what about the credit cards you already have?  I’m sure you will be penalized by an increase in their annual percentage rate as well. What a shame!

Is it worth doing a loan modification now or should I go with a short sale instead and be done with it?


One Response to “Loan Modification – Homeowners credit ratings take a hit”

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  1. As you know there is no Consumer Credit office open in Polk County, Spectrum Resources has been serving Polk County for the past 7 years counseling home owners in debt, credit and home ownership issues filling that void .

    Spectrum Resources used to teach people how to clean up their credit themselves, but at best that is a difficult challenge. So we researched to find a company that was lawful, ethical, reasonable priced and result driven. Please review the site shown: http://www.CreditJusticeServices.com/?ccc=1242. This company offers full transparancy. You will know the where your referred client is in the process of cleaning up their credit, and can see when they have achieved the last of the 75Day Credit Makeover.

    Spectrum Resources works from referrals from UWCF, Polk Works, Veterans Admin, the Health Dept, West Area Agency on Aging, plus many, many more. We go into the prison system and offer financial educaiton to the inmates re-entering society, do Lunch & Learns for employers and provide speakers at local organizations and churches. Our mission is to provide education and resources to those seeking financial self sufficiency.

    Please review my blogs that I hope you will find valuabe and helpful: http://MoneySavingTips.PolkVoice.com (over 10 k readers in just a few months )
    and http://SpectrumResources.wordpress.com and last by not least http://FinancialEducationAndOptions.blogspot.com

    Your referrals are appreciated.
    I wish you much success in your business.
    Sincerely,
    Janet Folkerts, SRDC Exec. Dir. / CCC
    (863)967-0660

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