Mortgage extention/forbearance?

[Anonymous]

I called Wachovia to see if I qualify for a modification. Answered their questions for what they called a 35 minute interview, I didn't qualify but was told I did qualify for an extension or a forbearance.

Whats the diffence? How do either affect my credit score/report?

Can I resubmit for remodification if I do either? How long before I can resumbit for modification.

I'm likely going to miss my next payment.

[Anonymous]

well, what did they say kept you from qualifying for the modification?  Income?, lack of need?, etc.

For a modification you have to show ability to repay and a financial need.  Also, your bank has to be willing to do it.  Wachovia is not known to be very helpful

An extension and/or forebearance just gives you time to catch up.  The extension gives you a few months to catch up.  The forebearance  takes the past sue payments and moves them to the back of the loan.  In any case, it will only help out if you can make your payments from now on. 

Most banks will only do a modification one time.  And a forebearance or extension is basicly a type of modification, but not the type you hear about right now (lowered payments, etc).  They may re-consider the modification in the future but probably not.

[Anonymous]

They said something to the affect that they don't see me being in a hardship situation with my current income.

[Anonymous]

the new modification program is based upon your housing payment and it's percent of your  income.  If your income is too high (or consequentially...oow enough) you will not qualify.  To qualify, you have to show both a change in circumstances since signing the loan, and ability to repay the loan.