How can I get a loan modification if I have bad credit?
How can I get a loan modification if I have bad credit?
This is a great question that we were asked the other day, and we wanted to cover it in this article.
This person was having trouble with their mortgage and they’re going through loss mitigation, specifically a loan modification.
They were talking and said, “I don’t think I’m going to be able to get a loan modification.”
We asked them why, and they said that their credit score was really bad because of the various months where they were late paying their mortgage.
This person said they couldn’t go out to a mortgage broker, which I understand why they’re saying that.
So they figured that if they couldn’t go to a mortgage broker, then they couldn’t get a loan modification from their current company.
Here’s the thing, though.
Your current mortgage company does not look at your credit score when they’re doing a loan modification.
They know you’re late, which is why they offer a loan modification.
The mortgage company does base the loan modification on other factors, such as your income, the amount of debt you’re carrying, etc.
Except for your credit score.
In all the years we’ve been working in the foreclosure area, we’ve never seen mortgage companies deny a loan modification because of a bad credit score.
Don’t let your credit score get in the way of applying for a loan modification.
Now, you may not get the modification, but we would hate for anyone to not ask for it because they’re worried about their credit score.
Focus on keeping yourself from facing a foreclosure and don’t worry about your credit score.
Hope this is helpful to you!
If you have any questions and you live in Alabama, feel free to get in touch with us.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly.
We look forward to chatting with you.
Thanks for reading, and have a great day!
P.S. If you are facing foreclosure, discover how RESPA, the FCRA, and the FDCPA can help you in Alabama. And discover the major secret mortgage companies do not want you to know about.