Loan Modifications & Your Credit Score
Just as the article states, many are finding out that after they got their loan modification even though they pay and have paid their mortgage on time have seen their scores drop as much as 100 points.
The bottom line is that it is much better than going into foreclosure or doing a short sale in the long run. Just continue to make all of your payments on time on all debts and you will see your credit score continue to prove. If you are having financial difficulties and needed a loan modification what do you need your credit for right now?
“The consumer is going into the program because they’re in a financial bind,” he said. “Other lenders would need to be aware of that.”