 Getting A Loan Modification Can Hurt Your Credit ScoreFriday, January 8, 2010 - Article by: Rich Iacovetta -
Many homeowners don't realize that getting a loan modification in California can hurt your credit. Jason Axelrod learned this the hard way. He entered a trial mortgage modification program last year. He was told it wouldn't hurt his 750 credit score, he was thrilled when he received a $565 reduction in his monthly payments. Well, to his horror, his credit score plummeted to 644. Hey listen folks, of course a loan modification is going to hurt your credit score. If you do not live up to the terms of your contract on your loan, it's called defaulting. It doesn't matter that it feels all warm and fuzzy, a loan modification. People have come to think that a loan modification is just another form of refinancing, almost like a gift from the government that you may or may not qualify for, but just go ahead and give it a try. That's not the case. If you modify, your credit suffers. So please be aware of that. Zillow, is a site that gives you their opinion of property values. Just a few months ago, I was working with a client who went to Zillow to get an estimated value of his home which Zillow said was 575k, well by the time the actual appraisal came back, the home was actually valued at 250k. I'm not making this up. Well Zillow is now offering you information on rental properties, and if their rental services are anything like the valuation models, well you'll be able to rent a Beverly Hills bungalow for about $200 a month. However a flooded house down in the bayou, might set you back about $9000 a month. Citibank was attacked by russian cyberhackers and robbed of 10's of millions of dollars. Did you know this, that over 95% of bank robberies are cyber crimes now. What happened to the good old days of Bonnie & Clyde with the tommy guns? Nowadays your criminal is a 19 year old kid with a couple of hotpockets and cokes sitting in the basement of his mom's house. |
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