fico scores: Loan Modifications Hit Credit Scores
- 12/29/09 05:46 AM
Loan Modifications Hit Credit Scores Applying for a mortgage modification and being in a months-long trial period can devastate a home owner's credit score. Under the government plan, troubled borrowers can have their mortgage payments reduced to 31 percent of their pre-tax income. They are first put in a trial modification for several months to test whether they can meet the requirements of the new mortgage. Borrowers who were previously current on their mortgages will see their FICO scores fall about 100 points while they are in the trial period, according to the Treasury Department. Borrowers who were previously late or … (4 comments)
Loan Modifications Hit Credit Scores
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