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I heard that they don’t look at your credit score to determine if you’re qualified for loan modification or not. But do they still pull your credit ?

It’s just that I have racked up more than 25,000 of credit card debt that I used to pay for the mortgage & bills (I know I was stupid, but I thought I could figure out a way to save the house while doing it)
I have not filed bankruptcy yet, but will have to eventually… as of now my house is my priority so just would like to have some feedback if having lots of debt in credit card/line of credit will make you unqualified for loan modification.

5 Thoughts on No Credit Check for Loan Modification ?
  1. Reply
    May 2, 2011 at 6:19 am

    They will look it up and determine that your debt is too high and that modification will not save you from foreclosure and deny it.

    You have to prove that a little tweak is all you need to be a great debtor, paying your bills on time.

  2. Reply
    May 2, 2011 at 7:00 am

    PLEASE go see a nonprofit credit counselor, HUD accredited. Don’t assume that you’ll have to file bankruptcy. You made some poor choices and will have to deal with the consequences.

    I’d just anonymously call and ask if loan modifications are being done and what the procedure is, what is required. I’d guess they’ll pull credit, but I don’t know as it’s a pretty simple procedure, and they’re just lowering the interest rate on your loan. They want to know that by lowering the interest rate they enable you to make a go of the house, and avoid foreclosure or bankruptcy.

  3. Reply
    May 2, 2011 at 7:19 am

    of course they are going to look at it as they will figure all debts as to determine if you can even pay them if they grant your petition. Yes you were stupid when you piled these on and they will most likely deny your case and foreclose as they have no idea that you will file a bk and if so not include them in it as well

  4. Reply
    May 2, 2011 at 7:45 am

    I don’t think that there is many banks or mortgage companies doing loan modification since if the mortgage has been sold as a security then it can not be modified. If I was you, I would just file for bankruptcy and try to keep your house with the current mortgage instead of waiting for the government to maybe do something in the future.

  5. Reply
    May 2, 2011 at 8:32 am

    call a debt settlement agency to work on your credit cards..they will take a monthly payment from you ,put it in an escrow account and when there is enough balance ,they will settle with the creditors for half or more of the balance.This is a better option than bankruptcy. Your credit will be affected till the time debts are settled but its certainly better than bk
    Good luck

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