Citimortgage Loan Modification Credit Effects

[lestion]

Greetings,
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I have done a ton of searching but can't seem to find any information that isn't far outdated about the Citimortgage Loan Modification in terms of how it will affect my credit score.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.

Regards

[Evan Bedard]

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?

Welcome and thanks for joining the community.

That is pretty strange they would send you a modification offer if you are current on payments and never inquired about a loan modification. I would not agree to the terms or send in any money towards the modification unless Citi is able to verify this offer is legitimate. If you never miss any payments prior to completing a loan modification it should have no affect on your credit rating..

[lestion]

Yeah I agree which is why I'm curious about it. I did hear back from Michael Cardace today from Citi who says this is part of the National Mortgage Settlement. He also said this type of program will be reported as 'paid as agreed'. He is checking internally to find out more for me at this point and even offered to have someone contact me about it from Citi. I guess we will see. I will keep you guys posted about the outcome.

Anyone else out there have any experience with this program?

Regards

[Evan Bedard]

Yeah I agree which is why I'm curious about it. I did hear back from Michael Cardace today from Citi who says this is part of the National Mortgage Settlement. He also said this type of program will be reported as 'paid as agreed'. He is checking internally to find out more for me at this point and even offered to havesomeone contact me about it from Citi. I guess we will see. I will keep you guys posted about the outcome.

I should of realized it was apart of the national mortgage settlement because you do not have to inquire about the program and they are sending out agreements to those who they determine eligible for assistance. This is definitely a legitimate offer and personally I would take it in a heartbeat. If you type in "national mortgage settlement" or "DOJ settlement" in the google search bar at the top of the page you will find a lot of information here about the settlement and many others who have also been approved for assistance under the program.

[lestion]

Yeah it looks very good, I just get very paranoid when it comes to my credit rating. A 100 point shot from a derogatory home loan would really hurt, and could counter all of the money I'm saving on the mortgage by ruining the rates on my revolving accounts. I will do some more research about it and wait to hear a definitive answer from Citi as well before I pull the trigger though just to make sure.
Thanks for your input on it, I appreciate it!

Regards

[Evan Bedard]

I'm glad I was able to help, please keep us posted on what you hear back and I hope everything goes through as planned!

[lestion]

I just got off the phone with Citi and was told that this IS part of the National Mortgage Settlement and that we were being offered this because we have always made our payments on time. The woman I spoke to confirmed it will continue to be reported as 'pays as agreed' even after the modification takes place. My last question I guess is can I take her at her word on that? I read alot of horrifyingly bad tales about people being told it would be but then was reported as something else. These folks however, were either behind on their payments or defaulted on their trial period of a loan modification. Am I being overly paranoid or would you be asking the same questions?

Thanks again.

[Evan Bedard]

The woman I spoke to confirmed it will continue to be reported as 'pays as agreed' even after the modification takes place. My last question I guess is can I take her at her word on that? I read alot of horrifyingly bad tales about people being told it would be but then was reported as something else. These folks however, were either behind on their payments or defaulted on their trial period of a loan modification. Am I being overly paranoid or would you be asking the same questions?

You are not being over paranoid as I'm sure you have read countless stories here of others going through similar events. But as long as you remain current on your payments you should be fine and your credit rating should not be affect what so ever if you accept the mod.

[hangtough]

It's a chance you can take but no, I would NOT believe what the lady told you...they all will tell you different answers. Just my experience. Also, according to paperwork I received when I did my modification, applying for any type of assistance of modifying your loan does hurt your credit rating. Yes you aren't behind on your payments but applying for a reduction in interest could very well follow under "applying for assistance" category. Just know it can happen or it may not.