Renaissance Realty Group’s Blog: Q: I have great credit and have always paid on time. Will a loan modification hurt my credit?

Q: I have great credit and have always paid on time. Will a loan modification hurt my credit?

A: No,  A loan modification does not change the fact that you have made all your payments on time. A good strategy while negotiating your loan modification to make certain that your credit standing remains stellar is to have the lender agree to not report anything associated with the loan modification to the credit bureau.

4 comments • Eric Reid • April 26 2009 06:21PM

Comments

I do not know too much about these loan modifications.  Is this a step in the short sale direction or is it simple changing your loan? 

Posted by Nate Rowe, Homes in Richmond VA Realtor in Richmond VA, (Oakstone Properties, Homes in Richmond VA ) about 1 year ago

Eirc,

Is a loan modification similar to a refinance?

Ann Hayden in windy Wildwood, Missouri

Posted by Ann Hayden Wildwood St. Louis MO Agent SelectAnn.com for your real estate (Prudential Select Properties) about 1 year ago

I have a couple of friends who were able to get loan mods.  I wasn't sure if it hurt credit or not.

Posted by Wendy Welborne-Kimery (Keller Williams-Lake Norman Mooresville,NC) about 1 year ago

Thanks for the tip to have the seller get bank to agree to "not report loand mod".  I'll pass along.

Posted by Wendy Welborne-Kimery (Keller Williams-Lake Norman Mooresville,NC) about 1 year ago

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