Loan Mod vs. Foreclosure - Loan Modification Forum

GISdude · 07-17-2009, 11:47 PM

Hi all. I am a newby here and have found the site very useful. We're your typical upside mortgage holders. I am trying to figure out if we try to work out a Loan Mod with our servicer, Guild Mortgage in San Diego, how much affect does that have on our credit score? Is it true that a loan mod will have just as much negative impact (I've heard 100-200 point hit on FICO score) as a foreclosure (is that also a 100-200 point hit)?

Could walking away be construed as "defrauding a creditor"?

Thx all, and appreciate all the feedback.

SillyWorld · 07-17-2009, 11:50 PM

Welcome to the Forum, a MOD may hit FICA but thats just temporary, a Forclosure will be listed for the next 7 to 10 years, read around many options for ya, and who knows if things get realy bad the GOV may make another break for those who held on

LHarveyMadman · 07-18-2009, 12:11 PM

My loan modification had zero impact on my FICO score. In fact, it went up by 20 points. Probably coincidental and related to other factors in my credit report, but it definitely did not have a negative impact on my score.

Part of the impact is going to be determined by how the modified loan is reported.

Here's how the Consumer Data Industry Association is advising lenders to report renegotiated mortgages. Fannie- and Freddie-backed loans are supposed to follow these guidelines.

http://cdia.files.cms-plus.com/Metro...Guidelines.pdf

07-17-2009, 11:47 PM	#1 (permalink)
GISdude Junior Member Join Date: Jul 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Loan Mod vs. Foreclosure Hi all. I am a newby here and have found the site very useful. We're your typical upside mortgage holders. I am trying to figure out if we try to work out a Loan Mod with our servicer, Guild Mortgage in San Diego, how much affect does that have on our credit score? Is it true that a loan mod will have just as much negative impact (I've heard 100-200 point hit on FICO score) as a foreclosure (is that also a 100-200 point hit)? Could walking away be construed as "defrauding a creditor"? Thx all, and appreciate all the feedback.

07-17-2009, 11:50 PM	#2 (permalink)
SillyWorld Senior Member Join Date: Apr 2009 Location: Central Pennsylvania Posts: 1,139 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Mod vs. Foreclosure Welcome to the Forum, a MOD may hit FICA but thats just temporary, a Forclosure will be listed for the next 7 to 10 years, read around many options for ya, and who knows if things get realy bad the GOV may make another break for those who held on __________________ Central PA, USA Waiting NACA Approval With Citi ON FHA MORTGAGE 05/18/2009 Ginnie Mae investor Is NACA Becomming a SCAM..?

07-18-2009, 12:11 PM	#3 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan Mod vs. Foreclosure My loan modification had zero impact on my FICO score. In fact, it went up by 20 points. Probably coincidental and related to other factors in my credit report, but it definitely did not have a negative impact on my score. Part of the impact is going to be determined by how the modified loan is reported. Here's how the Consumer Data Industry Association is advising lenders to report renegotiated mortgages. Fannie- and Freddie-backed loans are supposed to follow these guidelines. http://cdia.files.cms-plus.com/Metro...Guidelines.pdf

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