I just read an article on www.msnbc.com that has confirmed what we are hearing from Oklahoma City homeownersn in distress. If a homeowner applies for the making Home Affordable plan and is not behind on their payments, they could be hit as hard as 100 points. Owners already behind are going to have lower scores becasue they are late, but evidently a credit hit when you are not behind is a nasty surprise. Once they applicant enters the trial period once tghat is reported to the credit bureaus then a reduction ahppens becasue it is reported as a sign of financial distress.
It drives me crazy when people who are proactive, have a hardship thrust upon them through no fault of their own, then try to do the right thing in keeping the house are put in this position. My team deals with short sales all the time. In almost every case the owner has fallen behind on their payments. In only a few cases have these folks tried to do a loan modification. So far none of my clioents have been successful. My prblem as a Realtor who is trying to be authoritative and ethical would always want to give a non-delinquent homeowner who is just encountering a hardship the advice of seeking out a loan modification as an option, but losing 100 points in a futile gesture is not the way I want my clients to proceed. My advice to those entering into this program is to acknowlege the risk of a lower credit score if they are rejected from the program. Is it asking too much that this should be disclosed? I don't think so.
For more answers to your questions go to www.avoidforeclosureoklahoma.com
Comments(1)