I've just been approved for a permanent loan modification -- including a rather significant principal reduction -- from BofA. Although I was able to get converted from an adjustable, interest-only APR to a FIXED one, the rate is still horrible -- 8.05%.
I'd like to be able to refinance this once the permanent modification removes the "Default" and "Delinquent" status from our credit report, but don't have a good feel for how long it will take for my scores to significantly improve? We really only have two blemishes on our credit, and TONS of paid-as-agreed (and a good job and great income), but the "seriously delinquent" mortgage -- including a Foreclosure lis pendens filing -- is obviously pulling my score way down.
Will I be able to negotiate with the lender about whether or not they put the dreaded "Modified" note on my credit report, vs. a cleaner "Current" ???
Thanks in advance for any feedback.
Can anyone help me with this? Please?
I work for a different bank at the Home Preservation Center processing permanent modifications & I can tell you now that raising your credit score isn't the only thing you have to work on. Refinancing is a whole different beast & you have to make sure that you make at least 12 months consecutive on time payments. No lates!!! They need to make sure that you have a positive history within the last year before they even consider you - even if it's HARP. Make sure you go into one of the banking centers. A financial advisor can give you all of the info you need to prepare yourself for refinacing. Good Luck!!!
A very belated "THANK YOU" for this reply, 23. I have now made 13 payments in a row, on time and as agreed, and they never did put any sort of a notation on my credit reports other than "CURRENT," so that's a real blessing.
Unfortunately, my scores are still only 550ish, despite those two positive developments.