Does A Loan Modification Service Clean Up Credit?
Saturday, February 6, 2010 3:10When you are facing the threat of foreclosure, chances are your credit has already been severely damaged.
There are options that are available to you now such as a mortgage loan modification can begin to get you back on track financially. It will not fix all of your credit issues, but it will definitely be a step in the right direction.
Natalia Osorio Editor of the “Stop Foreclosure Loans″ website — http://www.StopForeclosureLoans.org — pointed out;
“…Debts that are reported to the credit bureau as past due can definitely do damage your credit report. In fact past due payments represent about one third of your total credit score. A mortgage loan modification can not only instantly stop foreclosure proceedings, but once it has been approved, your late fees and back mortgage payments will be removed from your record and you start with a current mortgage on your report. Once the mortgage company begins to report you as current to the credit bureaus, your credit scores will begin to improve…”
The process of a loan mod will also help to restructure your mortgage payments so that they will be more affordable to you. If your income can support them, they can lower your monthly payments down to 31% of your monthly income. This reduction in your mortgage payment can in turn ease up your financial situation a little bit in order for you to be able to begin paying some of the other debt that may have fallen behind during the financial rough patch that you have found yourself in.
“…A loan modification will not in and of itself fix all of your credit issues unless, of course, the only negative item you have is the mortgage. Any other past due or charged off accounts will still remain on your credit report. What it can be is a good start in cleaning things up. With your mortgage under control you should be in a better position to pay your other debt and that will help you to clean up your credit…” N. Osorio added.
Further information about how to get professional assistance with a mortgage loan modification by http://www.StopForeclosureLoans.org
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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