New York Debt Collection Harassment Attorney
New York Debt Collection Harassment Lawyer Firm News Your Rights Frequently Asked Questions What Should I Do? Contact Us
Watch our videos.
Visit our Blog
Home
Debt Collection Harassment
What Should I Do?
I've Been Sued
Your Rights
How to Find an Attorney
Credit Reports / Repair
Frozen Bank Account
FAQ
Bankruptcy
Areas We Serve
Contact Us
Abuse Type
State
Name
Email Address
Name or Phone of Debt Collector
What Happened?
Best Time to Call
Phone
--
Alternative Phone
--
306 McCall Avenue, West Islip, NY 11795

Mortgage Modification and Credit Reports

Modifying your mortgage may help with the financial trouble you are in, but voluntarily going into default so as to become qualified for a modification may have some unforeseen downsides.  Consider a person who is not in default that wants to use the modification system to try to lower their interest rate to that wonderful "2% rate my friend got."  After learning that she must be behind in her mortgage before qualifying for a modification, the consumer purposefully begins to pay less than the full amount of her mortgage each month.  After making the lowered payments, the homeowner is horrified to learn that her credit report had been damaged.

There are certain reporting guidelines that the credit industry (and the Federal government) has agreed to use to address the mortgage modification explosion.  But exactly how mortgage modifications situations are going to be "scored" on consumer credit reports is not perfectly clear. More importantly, it is not clear how potential new lenders are going to view someone who modified their mortgage.  How much is a "credit score" going to be decreased because of a mortgage modification?  Even if the credit scoring companies, (FICO, etc) don't consider modifications as a negative,  will new mortgage lenders refuse to lend to someone who participated in a mortgage modification?   These answers are not yet clear.   What is clear however is that consumers should consider these issues when making decisions about mortgage modification.

If you are having an issue with improper credit reporting, you are welcome to contact the Law Office of Joseph Mauro to discuss your situation.

ATTORNEY ADVERTISING

This web site is designed to provide general information only and to help in the choice of appropriate legal counsel. The information contained herein should not be construed as legal advice. Legal jurisdictions differ on major and minor aspects of the law and each legal situation is unique; requiring that all legal situations be addressed with qualified legal counsel. Prior results do not guarantee a similar outcome.

Submitting or receiving information or questions through this web site does not create an attorney client relationship. No attorney client relationship will exist unless you meet with one of our attorneys and sign a retainer agreement. Please do not submit any information that is case specific, personal or confidential.

If you have legal problem or issue you should always consult with a qualified lawyer experienced in the appropriate area of law. We would be glad to discuss your specific situation with you, should you so desire, by phone at (631) 669-0921.