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Physically, a loan modification should not cause any damage or injury. It is simply a method that homeowners can use to negotiate with their bank for a change of the terms of their home loan. This may include lowering the interest rate or extending the term of the loan, for instance.

In terms of the borrowers' credit score, a loan modification can not impact this. As of November 1, 2009, all loans modified under the government programs must include the following notice on the borrower's credit record:

"loan modified under a federal government plan"

As well, the government has made it mandatory that the credit agencies do not count this note on an account as a negative which will decrease the borrower's credit score.

However, potential creditors do look at the entire credit history of the debtors, and a loan modification may make them less willing to extend credit. This is dependent on the individual financial institution.

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Related questions

Is a closing agent required for a loan modification in New York?

The answer is no. I am a Certified Signing Agent and I am also a Loan Modification Consultant, but that does not mean that I need to be one in order to become a loan modification consultant. Glena


Can I qualify for a loan modification regardless of my Loan Type ?

A loan modification is up to the discretion of the lender. The type of loan doesn't really matter as much as the willingness of the lender to work with you.


Can a mortgagee include late charges on loan modification?

No because a loan modification is set in place to give the client a fresh start. The client should waive all the late fees that he/she had before the loan modification.


How do you get loan modification?

You have to apply to your lender for a loan modification. Some people use attorneys to make application on their behalf, and others choose to go the "do it yourself mortgage modification" route. If you decide to do your own home loan modification, make sure you get your paperwork correct. You need to know precisely what your lender requires, otherwise your application will be rejected. It may be a good idea to buy a loan modification system that can show you, step by step, how to go about the loan modification application.


Is a new deed issued in a loan modification?

No. Deeds affect ownership of the property. A new deed isn't necessary for a loan modification.


Which companies offer mortgage loan modification?

"Every mortgage lender or mortgage servicer offers mortgage loan modification. There are also many third party companies that offer mortgage loan modification, but work with them at your own risk."


Who can provide Loan Modification Success?

No one can guarantee that your home loan modification will be a success. It ultimately depends on your Lender as to whether or not they choose to modify your loan. However, if you provide your Lender with all of the documentation that they require, in the manner that they need it, then your chances of a successful loan modification will be greatly enhanced.


How do you do a loan modification to your loan?

When facing a foreclosure or something of that nature, you have to make a loan modification so that it doesn't affect any other financial firms or accounts you have. So you will have to visit www.modificationhelpnetwork.com


How can you fill an application on line for a loan modification for Bank of America?

Hello, I want to fill a loan modification application online for bank of America asap.


What is a mod loan?

A Loan Modification is a permanent change in one or more of the terms of a Borrower's loan, allows the loan to be reinstated, and results in a payment the Borrower can afford. A "REST Report" shows proof to the lender or servicers that a home owner is eligible for a loan modification or not.


Can you do a loan modification if you are not working?

In order to get a loan modification you need to have a job. Lenders will have difficulty agreeing to any kind of reduction in your mortgage if you are unable to make payments.


Is tithing an acceptable monthly expense when being considered for mortgage loan modification?

Is tithing an acceptable monthly expense when being considered for mortgage loan modification?