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I have heard mixed reviews on this. Does anyone know for certain the impact on your credit score if you get your mortgage terms modified through the new Obama plan?
I have a high score (720)...but carry a large amount of debt due to 2 international adoptions. Recently...both Chase and AMEX, with whom I carry the bulk of the debt...tripled my monthly payments. I have tried with no success to argue the payments back down.
I am current on my mortgage...but was considering requesting a loan modification based on the assumption that the values of my Long Island home has dropped.
Is there any info an what the impact to your credit score would be? Thanks!
Will not work. Frankly I do feel for you and anyone that does have debts from any legitimate source that the lenders are raising rates, as well as homeowners that may have large "paper" declines in their home value. Sadly that is something that you signed up for.
Lenders simply cannot be expected to modify your loan just because values have dropped. Should they do the opposite when values rise? Of course not.
I have seen lenders reduce the INTEREST rates on loans, especially on loans that have rates CLEARLY OUT OF WHACK with current rates. Generally the reason they do is because they DO NOT WANT you to default. If they can find a why to make it easier for you to devote a sensible level of income to paying your mortgage they will try to work on something. Don't expect SPEND, don't expect ease, certainly DO NOT EVEN MENTION 'value' -- focus on the things you can SHOW them about how close to the breaking point you are and ONLY that if you really are getting stretched too thin...
You are 100% correct...we got ourselves into this situation. And it's surely no fault of the lender...we have great terms on our mortgage. It's the CC payments that went to almost $1800 a month.
The lifestyle changes and addition of a 2nd part time job just isnt cutting it. Oh well...no more sobbing...have to write checks :-)
I'm pretty sure you've got to skip a few payments to get in on the gov plan. I don't think its worth the damage it would do to your score. Have you called your mortgage lender-NOT servicer to see if they have any deals?
Any chance of rolling that CC debt onto new cards?
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