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 .

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    Janet Folkerts, SRDC Exec. Dir. / CCC

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