Hi,
Does anyone have experience or knowledge of how mortgage forbearance plans really affect credit?
I came close to losing my home a few years back because my wife lost her job. The mortgage company placed us on a Forbearance for 10 months and asked us to do a modification at the end. However, my wife went back to work a few weeks before the modification and we were told that we did not qualify because of restored income. They demanded the whole arrearage immediately.
Anyway, we were then placed on a repayment plan that states "Forbearance Agreement". The terms state in writing that we pay our "regular monthly payment" of X amount while the additional X amount goes towards the arrearage. This plan is in effect for 24 months. We are 13 months complete. Well, our credit reports are bold and simple that we were 120 days late for the past 24 months. To me this does not seem right.
I have read that a "Forbearance" plan may help avoid negative reporting. Please help.
Mortgage forbearance
Hi Miki,
I have read that a "Forbearance" plan may help avoid negative reporting.
Yes, this is true. Mortgage forbearance helps you in preserving your credit as the loan is not reported to the credit bureaus as delinquent. This is rather a repayment plan for those in a temporary financial problem.
If you have the mortgage forbearance agreement, you can write a letter to the credit bureaus to update your account status. Attach proof of your forbearance agreement with the letter.
Thanks,
Aaron
I would file a complaint with the bank regulator
Federal Reserve
Office of the Comptroller of the Currency
Office of Thrift Supervision.
FDIC
don't complain to all. find out which one applies. this has helped me