topic New Short Refi Program Affects FICO scores in Mortgage Loans

New Short Refi Program Affects FICO scores

Anonymous — Tue, 28 Sep 2010 17:27:34 GMT

Does anyone know how much (and for how long) your credit score will be affected if you refinance under the new Short Refi Program, and the lender reduces your principal by 10%??

Re: New Short Refi Program Affects FICO scores

DallasLoanGuy — Tue, 28 Sep 2010 19:00:53 GMT

depends on how the lender reports it i would guess.

Re: New Short Refi Program Affects FICO scores

Anonymous — Tue, 28 Sep 2010 21:00:37 GMT

I would assume (you know what that means) that since this is a cancellation of debt, it would be similiar to any writeoff.

Re: New Short Refi Program Affects FICO scores

Anonymous — Tue, 28 Sep 2010 22:03:40 GMT

This will almost certianly have a big impact on your credit same as a normal short sale would. I would expect 50 points or more drop. Even mroe so if your score is pretty high already.

Also, this is the type of stuff that is quite likely to cause an audit by any other credit companies you have and could bring about a credit limit decrease, card closure, and make it harder to get credit in the future. If you are the type of person who needs access to credit or to maintain a certain credit score for work/living, do not do it. If credit score is not a big issue for you, then it is probably worth it. That said, the fact that you are asking about it leans towards your score being important to you.