Forbearance Agreement and Credit
I missed a mortgage payment, what will happen to my home? How will a foreclosure or mortgage loan modification will affect my credit?
These are questions that anyone facing foreclosure must ask themselves. The good news is that a mortgage loan modification can protect your credit and save your home at the same time!
Defaulting on your mortgage payment can lead to foreclosure and a negatively impact your credit standing. The fastest way to ruin your credit is by defaulting on payments. Even being 30 days late for a single mortgage payment, can impact your credit score. Worse yet, is allowing your home to be taken through foreclosure. People’s whose homes have been lost to foreclosure have a very difficult time regaining enough credit standing to receive another mortgage loan.
Protecting Your Credit
A mortgage loan modification is designed to protect you from both by reducing your mortgage payments to an affordable level. By negotiating changes in the terms of your mortgage loan, a lender can help reduce the monthly mortgage payment.
The funny thing with mortgage modifications is that to qualify you must be considered delinquent on your mortgage and we know that delinquency means some damage to your credit. However, you can reduce the impact that defaulted payments will have on your credit report by contacting your lender to request a mortgage modification.
If you are experiencing a temporary financial hardship, a forbearance agreement can protect your home from foreclosure while you repay the lender for missed payments.
Time is crucial!!
If you are experiencing financial hardship, contact us today! We can help you begin the negotiation process with your lender before your credit suffers any further damage! Our goal is to find you the help you need as quickly as possible!