Your Credit is Impacted Negative when Accepting a Trial Loan Modification
Most homeowners don't realize that their credit will be hit, a negative hit if they accept a "trail loan modification". This is something the banks and even some loan modifications companies forget or just don't tell the homeowner. It could be that they just don't know this simple fact.
The reason this is the case, is that the bank offered the homeowner a payment that is less then their original loan and for a temporary period. The hope is that after that temporary period, you as the homeowner actually qualify for the loan modification.
I have yet to see a full summary of all banks that offered "trial loan modifications", and then what the actually offer of permanent loan modifications to the trials finally penciled out to be. I have seen so far, some banks that offered 60% of the trial modification a permanent modification. I have even seen some much less than that.
So, what is happening to the remaining 40% or more. They are probably being forced to foreclose! We shall find out soon as the Obama Administration is going to post these statistics.
I will keep you posted!
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