Loan modification

1 Reply

I am considering applying for a loan mod on my house.   However, I'm almost positive  I'll need to get out of the house and into an apartment in a year or two.   I would like to know how you view a loan mod in terms of credit risk when analyzing a prospective tenant.   

I've never paid late or missed payments on anything in my life.   My credit score is around 750.    It went down from 800 because I currently have a lot of 0% credit card debt but I have all the money in my brokerage account.   

I have the banks loan mod paperwork and it says during the trial they report it as partial payment plan to the credit bureaus.  After the mod is done they report it as modified.     Would they keep reporting as modified forever after that or would it switch to paid as agreed at some point?  

I'm not sure how bad this will hit my credit score but I'm thinking it will be bad since I've had perfect credit my whole life.  

If the only thing bad on my credit report was this loan mod, how would you view that in terms of renting to me.    I may have two loan mods one for my main loan and one for my heloc with another bank.    Would two loan mods be a lot worse than one in your eyes?

I am getting very stressed out because I'll need to get approved for an apartment and I'm worried the loan mods can get me denied.   Any idea how much my credit score would drop? 

The last question is if I applied for an apartment and had missed some mortgage payments. Would that be a lot worse than a loan mod.   Or would you deny if there was a loan mod and missed payments.    Assume I will pay everything else on time as usual , credit cards, medical, etc.   thanks! 

Hi Dave!

How are you? Did you ever get your situation resolved? 

Best,

Lira

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