How will the loan mods report to credit report?

[atlchick819]

Curious on whether this will mark negatively on your credit report or will they add any notification that will be seen on credit report to show that you had "modified" your loan with mortgage lender? I am thinking of applying to modify my mtg with Chase due to hardships but I have never been late on it. I have seen on some other forums that people have been approved that are still current.....but I am worried on how this will impact my credit....want to keep it good if possible.

 

thanks!!

[Gryffindor]

Per the MHA Mod docs I just received from Bank of America they show that if your loan is late when you enter the loan mod they will continue to report your loan as being late to the CRA's while you are going through the 3 month trial period.

 

After that, if you remain current on your payments they will not report them as being late.

 

As for reporting as "modified", I don't know as I haven't gotten that far into the process yet. I think a lot is also going to depend on the policy of your servicer on how they choose to report.

 

There is a post on here somewhere that someone mentioned after getting a mod that their credit score dropped by 150 points.

 

At this point, my credit score is so trashed I don't even care anymore. I need the savings from the mod more than I need credit.

 

I figure I'll let things settle down in a couple of months and then actively go about starting my credit repair.