| Loan modification does not affect your credit score | | | | type of loan and there are no set procedures or credit |
| 'per se', but your credit score could be affected by | | | | history that relates to the new loan modification |
| other things. | | | | proceedings. So, even though you will not go into 'bad' |
| For instance if you never fell behind on your payments | | | | credit rating, your credit score will need to be worked |
| when you went into a modification, then - no - your | | | | on after receiving the loan. This is just another good |
| credit is not affected, but if you were late on your | | | | reason you should seek the advice of a professional |
| payments then your credit score is affected by that | | | | when trying to get this type of loan. |
| late payment. | | | | “…A loan modification will help you avoid |
| Natalia Osorio Editor of the "Stop Foreclosure Loans" | | | | foreclosure, and bankruptcy, both terrible on your 'credit |
| website -- -- pointed out; | | | | score,' thus it is a much better option and will not affect |
| “…In rare cases, a lender is asked to waive or | | | | your credit too badly. But just to be on the safe side |
| discount some of the principle owed on the original | | | | once the loan is authorized, you need to make timely |
| loan. If this happens then the lender will make a report | | | | payments on all your credit issues for a few months |
| as paid less than what the original loan was for and | | | | afterwards, so your credit score returns to normal. An |
| this will not 'hurt your credit score' but it won't look | | | | experienced loan processor can explain how to better |
| perfect either…” | | | | protect your credit rating and help it return to |
| Currently, in this type of loan it is difficult to say how it | | | | normal…” N. Osorio added. |
| will be presented to creditors. You see this is a new | | | | |