Today I found out that I am being offered a similar "modification forbearance". It will run for 6 months and my payments in that period will be reduced almost 50%! However, there will be a balloon payment at the end. So, no "free lunch" - repayment of foregone principal/interest will be required.
I was told that the investor requires that I be put on a forbearance plan first and in six months they will consider me for a loan mod. Is it true, I wonder?
Not so bad after all, but what effect will it have on my credit score? When I asked this of a WF rep I was told it will not have an effect. I am and always have been current on my mortgage, but need to modify my mortgage due to loss of income/equity/ARM mortgage and etc...
Any thoughts
