Credit questions

[taxpayer]

I am trying with Gmac and noticed that they ran my credit, not unexpected. I have never been late until now and only 2 weeks. Once a mod is done does it impact your credit? Does it show that the loan has been modified? Also does your lender kinda of punish you by running your credit over and over? Just wondering how this affects ones credit rating once a mod is done. I am trying to stay in my home, but if it ruins my credit in the process, then I may consider doing it a different way instead of killing myself in not being late. Thanks all.

[Evan Bedard]

Welcome and thank you for joining the community!

Once you apply for a modification your lender should only run your credit report once to see how many debts you have acquired.. If a permanent modification is achieved it should have no negative affect on your credit report..

[lisasxr]

If the loan is modified it will be notated on the credit report - either as code AC (making partial payments) or code CN (under federal government plan)

Code AC has been around for a while - and yes it negatively impacts your score (while this could be short term provided you follow through with your new agreement) but it allows other creditors to see that you are having financial issues which may turn into increased interest rates, lowered credit lines, etc etc.

Code CN is new with the HAMP program and no detailed information is available yet at to the impact to credit scores.

We had credit close to 800 prior to starting. I have run our report only since starting the trial payments (not scores) and we are reported as CURRENT - but under partial payments. I've been going round and round with my negotiator and have sent off requests to the credit bureaus to have ti changed to "under federal gov't plan" but no answers yet. We are getting ready to make payment #3 of our trial plan, and to date no negative impact to other credit lines.

Be ready to watch this carefully and be informed as to your rights. I've had to provide the HAMP directives to my negotiator several times because he stated that "IF" I got a perm mod they would correct it all then (that's not acceptable because any damage done in the interim wouldn't be correctable) Unfortunately, I've held his hand, but it's for my benefit so well worth it!

If your used to having high credit scores, be not afraid as they will only suffer short term while you move throught whichever process you choose, they will recover.

[taxpayer]

Good info, thank you both. Hopefully its only once, I am not surprised at all, that the coding after the mod will damage your score. Banks always seem to have some dirty little trick up their sleeve. How your credit ends up afterwards is very inportant to know up front in my opinion. There does not seem to be any rules that these lenders/servicers have to follow.
Thanks again.

[lamb616]

Funny you should ask....... I am about to make trial payment #3 with BoA. I have had PERFECT credit all my life -- never a late payment, ever. I just tried to get a credit card so I can do a 0% balance transfer -- DENIED!! The reason according to their letter is "Serious Delinquency". When I pulled up the report from Equifax, it doesn't say my mortgage account is delinquent, it only says "Partial Payment, Paying as Agreed". I then got my report from the other bureaus - one says the same thing, but the other says "Derogatory Account" next to it.

I just called BoA and they said that while in the trial period, they report the account as "delinquent" although they note that we're making partial payments as agreed. According to the guy I talked to, once the modification process is over - whether approved or denied -- they wipe all that off your credit report. I won't hold my breath for that to happen. I'm sure this whole nightmare will haunt me for many years after the whole mod. process is over and done with.

[lisasxr]

DO NOT WAIT FOR BoA. KNOW YOUR RIGHTS. PUT THEIR FEET TO THE FIRE.

By allowing BoA to tell you this line of crap, your letting them get away with not following HAMP directives. This is what they hope for as then they can do whatever they want. In the meantime, your other credit lines may be impacted and there is no way to correct if and when BoA changes your report.

I have called my negotiator out with HAMP directives the entire way. He gave me the same line of crap (and we are still "arguing" about credit reporting). When he stated that BoA will correct at the end, I copied the specific HAMP directives that state when full payments should be applied and how credit should be reported. I specifically asked if he and BoA were going to ignore the program directives. He obliged with my request and modified his statement. He and I have yet to come to an agreement on the credit reporting (as it was reported under code AC when it should have been reported under code CN) I email at least 2x per week. Since it has now been 2 weeks without resolution from him (and really no indication that he's done anything) I have copied my most recent email to HAMP overseer Freddie Mac. Hopefully he gets that I'm overly serious about this issue.

I will make my 3rd trial payment on Thursday. Immediately I will forward my most recent paystubs and bank statements and the HAMP directive stating that after 3 timely payments a permanent mod will be given. I'm all over this like it was my new hot boyfriend!!

[Jim007]

We are getting ready to make payment #3 of our trial plan, and to date no negative impact to other credit lines.

Be ready to watch this carefully and be informed as to your rights. I've had to provide the HAMP directives to my negotiator several times because he stated that "IF" I got a perm mod they would correct it all then (that's not acceptable because any damage done in the interim wouldn't be correctable) Unfortunately, I've held his hand, but it's for my benefit so well worth it!

Your just getting ready to make your third trial payment...and you have a negotiator already...How does this happen...You should feel fortunate..My lender all ya get is costumer sevice reps and I've made six trial payments...

[lisasxr]

Yes, we were assigned to a negotiator in 8/09, but she didn't look at anything until 10/09 and got our approval 2 wks later. It took over 90 days to get the darn paperwork, and she escalated our file to her supervisor. The man I communicate with now claims to be a manager for home retention with BoA. (I do fee fortunate to have gotten this far - although the road has been long - original call for help 3/23/09)

I pulled a copy of our free reports (no scores) in early April. Last night I signed up for a credit monitoring service for myself (assumably - and I know that could get me in trouble - they will report for my husband the same as they report for me so no need to pay double the fees to monitor his as well) Anyhow - BoA hasn't updated our credit file for March or April. MAYBE, just MAYBE, the negotiator really did put a credit reporting hold on our account as I requested - and he told me wasn't possible. I also noticed that our account is noted as current - but with comments about under partial payment agreement. Since I don't know how they reporting works - we didn't enter into the partial payment agreement until 2/15/10 - so the reporting was either done with BoA assuming we would accept, or after our acceptance, but prior to the 1st partial payment.

[taxpayer]

Thanks for the good info Lisa, I wonder when this credit thing will be cleared up and we will now exactly how we stand afterwards.