How will a Loan Modification affect my credit?
Many people ask us "how will a loan modification affect my credit?" "Will my credit score go down after a loan modification?" "Should I foreclose on my house?" or "Should I short sale my home?"
According to VantageScore, in a report featured on CNN, a loan modification has a minimal effect on your credit score, almost meaningless. A short sale can cause a 120-130 point drop in your credit score. A foreclosure can cause between a 140 and 150 point drop on your credit score. The absolute worst thing you could do for your credit would be filing for bankruptcy. If you file for bankruptcy you can see your credit score go down 355 to 365 points.
Am I qualified for a Loan Modification?
Chances are, if you are in a situation where your finances have been impacted to the point that it is preventing you from keeping up with your monthly payments then you are likely a candidate for a loan modification. You can be eligible for an interest rate reduction and also have your previous late and missed payments for given. Fill out the form below to have aa Loan Modification expert if you are interested in your options or just want to know how a loan modification can impact your credit.
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