I have been lurking for a bit here and thought with all the great folks here I should be able to pick a few brains about this.
I have done a ton of searching but can't seem to find any information that isn't far outdated about the Citimortgage Loan Modification in terms of how it will affect my credit score.
I received an unsolicited offer from Citi stating they would drop my rate 1.45% because we are making our payments 'on time in these hard economic times'. I am not in trouble in any way with my mortgage, for the life of my loan I haven't had so much as one late payment. I am also not 'underwater' on my home so I don't know why they sent me this offer, but it looks great and 'too good to be true' and as many of us know, if that is how it looks, it most likely is.
Here is my dilemma:
I am having no issue making my mortgage, so I don't NEED to do this, but who wouldn't want to save that much interest on their home loan? That being said I wouldn't mind doing it, but I am very leery about them reporting to the credit bureau as anything other than 'pays as agreed'. I read mutliple horror stories about people who had things like 'loan terms modified' on their credit reports and they lost almost 100 points on their FICO scores because of derogatory comments like those listed above. I do not want my credit history harmed in any way as I have worked so hard to get it where it is today.
I did email Michael from Citi from the contatcs listed on this forum today but I haven't heard back from him yet.
Does anyone have any current experience with this Loan Modification or know how Citi will report this if I do take advantage of it? Or should I run like the wind and leave well enough alone?
Any thoughts or experience would be greatly appreciated.