Loan Modification

[Anonymous]

Hello,

Can anyone tell me how long a lender is required (per FCRA) to report a loan modification to the Credit Bureaus?

The short story is in 2010 I was 30 days behind for 4 months straight and the lender contacted me and offered an loan modification that lowered the interest rate. It is now reported as "Loan Modified but not under federal government plan" on my credit report. I'm finding that this is very damaging if i ever apply for future mortgages, no matter what my score is. They look at is as just as bad as a Foreclosure or Short Sale. I was never informed that it would report as such and no one can tell me how long either.

Any information on this subject is appreciated in advance.

[Kozmo]

Well, as far as I know as long as the mortgage shows on the report it will say Modified.

As far as it "looking bad". Truth be told missing the 4 payments is what would look bad because that's 4 seperate derogatories on the report.

Ultimately, you can always improve your credit situation. If a lender sees the last mortgage was modified they will not look at it like a foreclosure...not even close. And if they do then take your business elsewhere because that's ridiculous.

Modifications in general aren't always "bad"
Although during trial periods they can report you as late. But modifications don't always go to people that are behind. Lenders will often give a mod to someone who is in danger of missing payments but have not done so yet.

Hope this helps. It is possible if it is a short term mod that maybe it will change back to its previous status on your report but I do not know that for sure