Hey all. Sorry for the long bit before my question but please bear with me. I bought my house in '07 and have never missed or been late on a payment. At the beginning of the year, my employer reduced everyone's salary by 5% due to tough times in our business and then a few months later started with the 2 unpaid days off per month thing. My wife's employer took similar steps. This hit us pretty hard and up until now, we've been barely getting by and have been able to make our mortgage on time (albeit while depleting our savings). I called Countrywide/Bofa a few months ago and was told they couldn't refi due to my decreased home value. Last week I had a $1500 car repair bill that I had to pay cash since the few cc's I have are pretty much at their limit. So now I have the August payment coming up with really no way to make it. I called Bofa today to see if there was any way to defer a payment or something and they pretty much said no. I got bounced around to a few people and ended up in their retention department. I spoke to a person who said there was a load mod program I can try for which takes my payment down to 31% of our income, which would save us about $600/month. He asked me some questions and thinks I may qualify, but I have to get all of my financials together and give them a breakdown of income, expenses, etc. He said the process can take up to 90 days. Meanwhile, I will be behind on my house payment. I won't be able to make my August payment and won't be able to come up with the extra money to repay that amount back on top of my normal monthly payment.

I'm just wondering how this will affect my credit. If this takes as long as he says, I will basically have 3 late payments on my credit. It just makes me sick that all of the work I put into credit repair just to buy the house will now be undone because I wasn't able to save for the unexpected expense. I've lost sleep trying to find a way to get this August payment made, but I truly have no options other than to skip it. I'm greatful that we will be able to keep our house and have a little breathing room if we get this loan modification, but the damage to my credit has really got me worried. Any idea how much of a drop I can expect in my scores? The last time I checked, my mid was 682.

I feel for you, my DH and I are in the same boat. I left my job in February & my DH lost his in June, we have been paying our bills w/our savings & what little I am making from Real Estate. This month I paid my mortgage late & I decided to call Wells Fargo ref. the modifications, they did say that doing a MOD will hurt your credit, how much, she did not know. She said we have to speak to the mitigation department for answers. I also hate to loose my credit since all my delinquencies from 7yrs ago have all been cleared! I have a very high score so I will have to think it twice. I am sure since your property, just like mine, have declined in price & the jobs are like they are when you apply for a loan again you will be able to justify the circumstances. If you need to do anything like this, it's the right time, I will just play it by ear & continue to pray so that my bills continue to get paid. Good luck to you.....

If you are not late going into the mod, then any late dings on your credit report should be reversed once the mod is completed. That was how it worked for me. In my case, the mortgage company suspended payments and tacked them onto the end of the loan. I had a couple lates show up, but those were cleared up within the months end.

You were blessed that they did that for you. Who was your loan servicer? I am with Chase and our Loan Mod was approved but the 6 months late payments are still on our credit report. They will not remove them. The great news is that it has been one year and it appears that since it is over 12 months they do not affect our scores as much. We saw a steady rise in our scores into the mid 700s in the past month from low 600s.

So give it time. As they say, this too shall pass and maybe if you are persistent they will remove the lates. Just make sure after the MOD you pay every month on time!!!!!!

I just spoke to Wells Fargo, once your 3 month trial period is over your deliquencies for those months will stay on your credit. It will erase in 7 yrs. as for every other late on your credit.

I have a question, what is more important to you? Your credit rating or your home?

If you are in need, you really have to get over this credit rating thing. Who cares? increasing our debt is what got us (Americans) into this problem. I have been paying down and off my credit cards for months now. I pay cash or save up. I use lay away and make payments. I feel so much better.

If a loan mod will allow you to stay in your home, then the last thing you should be concerned about is your credit. Get over it, and stop doing things that are in your best interest.