Partial agreement mortgage

[lexy5478]

I had a mortgage in which I pay 629 a month, I always pay my taxes for the previous year in August.   Last year in June the mortgage company paid my taxes. (not delinquent) for the previous year in June. They sent me a letter stating due to new programs they would reduce my interest rate for the term of the loan  25 years and include the taxes. I asked if this would effect my credit and they said no. Yet I find on my credit report for equifax my score dropped 100 points as they are showing me derogatory each month. I contacted the mortgage company who is part of AGI Acwon and they say I am not delinquent and only report that I modified my agreement. I never was 30 days late on any payment and NEVER MADE A PARTIAL OR REDUCED PAYMENT. THEY JUST REDUCED MY INTEREST RATE. Nothing has changed on Experian and transunion goes up and down every couple of months. I have a score of 700 on experian and 600 on equilfax and transunion  IS UP AND DOWN EACH MONTH.  Has anyone had this problem and any ideas.   Ocwon agrees that I have made all my full payments on time and sent this to the 3 credit companies but they say by law they need to send a statement that my mortgage was modified OR amended as of last November and because of this equilfax shows that my payment is late every month and derogatory .  HELP

[llecs]

Unfortunately, even if you pay 100% on time under a loan mod agreement, they'll mark you late every month if you pay less than what your original loan agreement stated. The first CSR you talked to gave you some really bad info. On the flip side, did you really have any alternative other than to get a mod? Rhetorically asked...you don't have to answer. And I know all they did was reduce the interest, but unless it was a refi, it was a modification. I'm clueless on loan modifications and the process, other than that I know others have been marked late too after negotiating similar. You can always send a GW letter asking the lates be removed, but if this is a 25-year deal, you might be better off, score-wise to see if you can go back to the org. agreement.

[lexy5478]

I never paid less then my original mortgage, yes  I had options, I just took a loan our on rental property for 25 thousand and could of paid my 1500 in taxes but they offered me a 1% discount on the loan which would save me lots of money. I still pay the original amount

[bicknar]

It sounds to me as if the loan was re-structured.  They gave you a better interest rate.  And in return you let them pay your taxes for you.  They give you the incentive to have them do the taxes so they have the piece of mind knowing there won't be any tax leins on the property.  That's how I understand it.  That shouldn't be hurting you.  For example, if I had an ARM, and the time came for the interest rate to change and it did, yeah the payments would change but if I never missed one, all should be the same on the credit reports.

I would get a copy of the credit reports that it posts to if you do not already, and confirm with someone at the mortgage company how they are reporting it and why.  I would ask for someone above the level of CSR so you get the real answer.

Good luck.