Upside Down Mortgage

Posts Tagged ‘loan modification credit impact’

Loan Modification Credit

Question: Has anyone done a mortgage lone modification? Do you have to be employed to qualify?

Been out of work for a 4 months, still have savings for another 6 months. I am wondering if anyone has all ready tried to qualify for a loan modification. Not under Freddy Mac or Fanny May mortgage loans, but under other bank mortgage lenders. I may have to take a job at 60% of what I use to make. To keep my house I would need a modification. Does this hurt ones credit?

Answer: Your situation is perfect to qualify for a loan modification, however you really need to get educated on the entire process before attempting to contact your mortgage company.

You need to know exactly how to go about requesting a loan modification because the lenders would prefer to keep your current loan and will not help you if you don't know how to approach them. If you are current on your mortgage,a loan modification does not affect your credit in a negative way.

You could go the professional route and hire an attorney to do the modification for you if you have an extra 1,500 - $5,000 laying around. But you have to be very careful because as with anything that is popular, you will have to sift through to find a legitimate company because there are many scams going on in this field now.

If you have 6 months worth of savings left I would suggest you start educating yourself now because as you know time has a tendency of flying by.

Jay Robins - Tips on Home Loan Modification, Credit, and Short Sale

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