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Frequent Contributor
Posts: 328
Registered: ‎01-23-2013
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Refinancing after Permanent Mortgage Mod?

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.

_________________________________________________________

2007 - 2010 low point: mid-500s

With the help of myFICO community, now: 714 EQ FICO

"At the end of every hard-earned day, people find some reason to believe." (Bruce Springsteen)
Frequent Contributor
Posts: 328
Registered: ‎01-23-2013
0

Re: Refinancing after Permanent Mortgage Mod?

Can anyone help me with this?  Please?

_________________________________________________________

2007 - 2010 low point: mid-500s

With the help of myFICO community, now: 714 EQ FICO

"At the end of every hard-earned day, people find some reason to believe." (Bruce Springsteen)
Frequent Contributor
Posts: 291
Registered: ‎02-05-2011
0

Re: Refinancing after Permanent Mortgage Mod?

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!!! Smiley Happy



Starting Score: EQ 414 (01/05/11), TU 422 (01/05/11), EX ???
Current Score: ALL FICO's: EQ 654 (04/17/13), TU 641(03/04/13), EX 638 (03/20/13 - AMEX SOFT PULL)
Goal Score: ABOVE 680 ALL 3
Current Cards: Too many!!! App Free since 04/19/13 & NOT APPING until 04/2014....
Frequent Contributor
Posts: 328
Registered: ‎01-23-2013
0

Re: Refinancing after Permanent Mortgage Mod?

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.  Smiley Happy

 

Unfortunately, my scores are still only 550ish, despite those two positive developments.

 

Pigeye

_________________________________________________________

2007 - 2010 low point: mid-500s

With the help of myFICO community, now: 714 EQ FICO

"At the end of every hard-earned day, people find some reason to believe." (Bruce Springsteen)
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