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Originally Posted by abcxyz  Ok, talked to a rep today, he said the trial period DOES affect your credit reporting because you're making a lower payment than what your original payment supposed to be.
I guess my credit score going down would not bother me if I got the modification permanent after this trial period, because I'd rather be paying way less on my mortgage and having a lower credit score (temporarily) than paying what i'm paying and have a high credit score. So the only way it would tick me off, is if my score went down and later the modification wasn't approved permanently... |
Here's the thing. The servicers are instructed on the Obama Plan to report the customers as current during the trial period if the customer is current going into the trial. *** had posted the documentation somewhere around here. I will try to find it. Two things might be happening. 1) Is anyone actually on the MHA plan if they have not received the documents, signed and returned?(and is this how the servicer is getting around it) OR 2)Can the servicer get around this reporting issue by reporting current but reduced payment amount?
Bottom line is, by reporting a customer delinquent who is current going into the trial period under the MHA, the bank is not following the "spirit" of the plan. Maybe we all need to go to the TARP web site and report this. The idea of the MHA plan was to help homeowners at risk, not f___ up their credit and make life miserable for them.