The federal program to help home owners through the loan modification program sounds like a good deal. But be aware that while you are in the “trial period” your lender will report to the credit bureaus that you are in a partial payment plan. Even if you did not miss a payment, your credit score can drop by 100 points making it difficult to get a car loan or obtain other commercial credit. Once the trial period is over and the loan modification is formalized lenders will report you as being “current” but the delinquencies incurred during the trial period can stay on your credit report for up to seven years.
Don Grafues
Resource: cnnmoney.com
Resource: cnnmoney.com
