Home loan modification question? My husband and I currently going through the home loan modification process. Has anyone else gone through the process? What was your experience and did you notice a negative impact on your credit report. They are telling us at Bank of America that the trial payments will not be applied to your loan right away but be put in escrow account until the modification is perm, then they will be applied the oldest past due balance. They will report to the credit agencies that you are 30 days late on your payments too. Also it was pure hell to get this far. We have never been behind or late, but we have exhausted our savings, borrowed money from family, and husbands 401k. This is all do to a job loss and some health issues on my part. Please tell me your experience with this process, also has anyone dealt with Bank of America?
It has taken 4 tries to get this far. the one thing that concerns me is that when they recieve your modifcation payments they put them in escrow and don’t apply them to your mortgage payments until the modification is final. so all along they report the credit agencies that you are late, so no mater what you do it will impact your credit in some way. You think they would bend over backwords so they could prevent the cost of foreclosure fees they would have to pay. But these banks just are so hard to work with. 1st 3 times they said we didn’t have enough income…duh that’s why we applied. then the 4th time they sent the trial modification payment plan. we also looked at refinancing but it would have added to our balance of the loan and only lowered our payments by like $50.00 where the modification has lowered them by $160.00 something.
Also to refinance was like $5000 we had to pay $400 up front then the rest of the $5000 would have been added to loan balance after we have worked so hard to get the balance down.
Attention: Landlord……we did do the loan modification to increase our spendable amount we did it because we were afraid of lossing our home, do my job loss and my continuing illness. you have not right to judge unless you know the circumstances. Alls making home afordable program is for people having a hardship problem that might make them become late on payments, you don’t have to be late or behind on payments to qualify. lead about it. I don’t care for you attitude or answer. I don’t know how you ever became a top contributor.
HI. I’m going through the same process but haven’t gotten that far. I have heard that they put you into default on purpose and it will hurt your credit…avoid this if you can.
They should at least refinance you for free and maybe that will alleviate your monetary obligations a bit? If you’ve been making payments, there is no reason why they should default you on purpose. It makes them look like they are helping you on paper, when in reality they F’d you gently and will take your money anyway. References :
I am amazed you received a modification with you not being in foreclosure. The program is to avoid foreclosure, not increase your spendable income. I would say they were easy on you, not hard at all. There are people who honestly need their loan modified that can’t.
You can expect your credit rating to drop about 200 points before this all said and done. References :
Home loan modification question?
My husband and I currently going through the home loan modification process. Has anyone else gone through the process? What was your experience and did you notice a negative impact on your credit report. They are telling us at Bank of America that the trial payments will not be applied to your loan right away but be put in escrow account until the modification is perm, then they will be applied the oldest past due balance. They will report to the credit agencies that you are 30 days late on your payments too. Also it was pure hell to get this far. We have never been behind or late, but we have exhausted our savings, borrowed money from family, and husbands 401k. This is all do to a job loss and some health issues on my part. Please tell me your experience with this process, also has anyone dealt with Bank of America?
It has taken 4 tries to get this far. the one thing that concerns me is that when they recieve your modifcation payments they put them in escrow and don’t apply them to your mortgage payments until the modification is final. so all along they report the credit agencies that you are late, so no mater what you do it will impact your credit in some way. You think they would bend over backwords so they could prevent the cost of foreclosure fees they would have to pay. But these banks just are so hard to work with. 1st 3 times they said we didn’t have enough income…duh that’s why we applied. then the 4th time they sent the trial modification payment plan. we also looked at refinancing but it would have added to our balance of the loan and only lowered our payments by like $50.00 where the modification has lowered them by $160.00 something.
Also to refinance was like $5000 we had to pay $400 up front then the rest of the $5000 would have been added to loan balance after we have worked so hard to get the balance down.
Attention: Landlord……we did do the loan modification to increase our spendable amount we did it because we were afraid of lossing our home, do my job loss and my continuing illness. you have not right to judge unless you know the circumstances. Alls making home afordable program is for people having a hardship problem that might make them become late on payments, you don’t have to be late or behind on payments to qualify. lead about it. I don’t care for you attitude or answer. I don’t know how you ever became a top contributor.
HI. I’m going through the same process but haven’t gotten that far. I have heard that they put you into default on purpose and it will hurt your credit…avoid this if you can.
They should at least refinance you for free and maybe that will alleviate your monetary obligations a bit? If you’ve been making payments, there is no reason why they should default you on purpose. It makes them look like they are helping you on paper, when in reality they F’d you gently and will take your money anyway.
References :
I am amazed you received a modification with you not being in foreclosure. The program is to avoid foreclosure, not increase your spendable income. I would say they were easy on you, not hard at all. There are people who honestly need their loan modified that can’t.
You can expect your credit rating to drop about 200 points before this all said and done.
References :