NFCU has offered me a mortgage modification

[MarineVietVet]

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@Walt_K wrote:

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@GregB wrote:

I have had a number of customers and friends that have had unsolicited offers from their mortgage companies. They are all people with stellar credit scores, perfect history and good equity positions. They are very, very well qualified including one that was considering paying off the balance with money in CDs in the same bank.

There were no catches or negative results. All were easy and fast.

None of them were NFCU.

I think they are just trying to keep good customers that could easily go get a new mortgage at better terms.

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This is as it should be.  There's no reason a bank can't change the terms of a loan without adverse reporting.  I think a lot of us have just read so many accounts where this has gone horribly south that we are very leary of entering into these modifications.

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+ 1   We've all become gun shy about this subject I'm afraid.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[JMN]

Sounds simply like an internal refiance, simply with the same loan number, lack of income verification, etc. But, it does technically count as a mod, since its simply a rate adjustment without anything else.

The bank I work for has a similar program, however, credit check and income verification is required, but there are no costs associated with it. Like someone said before, it's offered to customers with stellar track records, fair amount of equity (70% or lower), and have a higher rate that is considered a high attrition risk, due to the falling rates.

Sounds like a good program for you, especially since it won't report to your reports as a mod, and you'll end up saving a lot in interest.

[geronimo2008]

No one has said it is not a modifiication.  The only thing reaaly in question is whether they will report anything on this. They say no and we will find out if that is true.

[stan_the_man]

I wonder if OP should just refinance his loan. Yeah it will come with a new account and inquiry, but NFCU should be willing to offer the same rate (and hopefully terms) if his credit is prime.

The new account and inquiry would result in a short-term credit hit, but there'd be no risk of a major derogatory being reported.

[JMN]

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@stan_the_man wrote:

I wonder if OP should just refinance his loan. Yeah it will come with a new account and inquiry, but NFCU should be willing to offer the same rate (and hopefully terms) if his credit is prime.

The new account and inquiry would result in a short-term credit hit, but there'd be no risk of a major derogatory being reported.

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This is a good point.

Also, considering the amount of time left on the loan, if the OP went to a 15 year, perhaps, they could potentionally get a better rate than 3.5%.

[geronimo2008]

I don't particularly want to refi.  My current loan is a 15 that would have ended in 2020 but that Ia m paying down so it will be paid off more than two years early.  getting a better rate is questionable. Even if I found it  thawould involve a long application process and points and fees.  I have done the math and no it does not work.  As for matching that rate on a new loan with all of the fees mentioned above it is hard to see how it would hae ANY advantages at all.

I think the consensus is that a modification must be bad.  I am not so sure that is true.  I suppose I am taking a risk by accepting this but the alternaties all seem worse and IMO it is worth trusting that NFCU will do what it a promised----or not do what it has promised NOT to do.

[geronimo2008]

OK.  I went ahead and paid the November payment early.  the revised payment and interest rate along witha new amortizatio table is already appearing on the NFCU website.  NFCU has told me in the past that they report mortgage info on the 25th.  I will pull my scores and reports here on the 28th or so and let you all know what it does to my scores (if anything) and whether I see anything on the reports.

I know most of you are skeptical about this but I think the savings are worth the risk----let's see if Ia m right.

[MarineVietVet]

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@geronimo2008 wrote:

OK.  I went ahead and paid the November payment early.  the revised payment and interest rate along witha new amortizatio table is already appearing on the NFCU website.  NFCU has told me in the past that they report mortgage info on the 25th.  I will pull my scores and reports here on the 28th or so and let you all know what it does to my scores (if anything) and whether I see anything on the reports.

I know most of you are skeptical about this but I think the savings are worth the risk----let's see if Ia m right.

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A bit skeptical perhaps but I'm also hopeful that it turns out well for you. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[geronimo2008]

I guess I am more than a little late updating this.  The bottom line is that there was absolutely no effect on my TU or EQ FICO scores.  I am simply enjoying the lower interest rate and payments.

[tubesock]

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@geronimo2008 wrote:

I guess I am more than a little late updating this.  The bottom line is that there was absolutely no effect on my TU or EQ FICO scores.  I am simply enjoying the lower interest rate and payments.

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SWEET!!! I'm a NFCU customer and looking to buy a home using their 100% financing this time next year. I've had pretty good results with them using their products. Good to see they told you the truth and you have found that what they said was truth.