credit report and trial forbearance

[podge8]

To make a long story short, we were offered a 3 month trial forbearance ($399 less than our required payment) from Wells Fargo before they give us a modification. We refused, because they would have reported us delinquent on our credit. They said they would make a notation on our account not to report anything to the credit agencies during the trial. Nothing. No positive or negative reporting. What would that do to our credit? We are current, and fought to maintain our credit and will not give it up for the measly mod they offered (but that's a whole other story!). Obviously being reported on time and paid in full is best, but would nothing reported be better than a report of partial payment per agreement? I would guess it would certainly be better than being reported delinquent! Thanks for your help!

[Hopefull2009]

Although I was already behind when I started my trial period, I noticed the other day - they haven't reported at all since my trial period started. If they're reporting nothing at all and you were already on time with no negatives, that wouldn't change (the "good" status) because they aren't reporting monthly.

[imlars]

Originally Posted by podge8

To make a long story short, we were offered a 3 month trial forbearance ($399 less than our required payment) from Wells Fargo before they give us a modification. We refused, because they would have reported us delinquent on our credit. They said they would make a notation on our account not to report anything to the credit agencies during the trial. Nothing. No positive or negative reporting. What would that do to our credit? We are current, and fought to maintain our credit and will not give it up for the measly mod they offered (but that's a whole other story!). Obviously being reported on time and paid in full is best, but would nothing reported be better than a report of partial payment per agreement? I would guess it would certainly be better than being reported delinquent! Thanks for your help!

I work in an underwriting office and I have not seen a single modification that didn't require a forebearance or trial period prior to the actual modification. I also had a couple that never got behind on their mortgage, was approved for and completed the trial period for the HAMP and found out when they attempted to co-sign on a car loan for a family member that the trial period had affected their credit score. Whenever the lender offers a forebearance always ask if a modification will follow because some forebearances do not include a future modification.

[podge8]

Now I'm concerned about if we do get the mod without the trial, they may report us as partial payment per agreement as well, or something else other than paid in full, ruining our credit! What gives? I guess it makes some sense because you're no longer paying what you originally agreed to, but it just seems to be pouring salt in the wound when so many are suffering economically. Now we have to take a credit hit, too? Sheesh!

And Imlars,
They refuse to say whether or not we would get a mod after the trial. They only say we would be considered. What was the past 8 months for? Weren't we being considered all this time? This whole process is insane!

[BadBobMo]

Now we have to take a credit hit

They had a plan and we all are looking at it. The HAMP state's that they are to help people even if they are not behind yet!