@Anonymous wrote:
I was never late in my mortgage payments. The lender has just updated my credit profile
Rate/Status: Not more than three payments past due
Settlement accepted on this account , Real estate mortgage , Paid
I have a feeling that we are going to see a lot of new "unusual" credit report (derog) entries There is another discussion about the phenomenon HERE. The fact is any arrangement made to pay less than the full payment owed and on time will probably generate these previously unheard negative notations.
When a creditor has to settle for less than the contracted payments that the consumer had agreed to pay, the consumer obviously will not be allowed keep the same score he would have before he defaulted.
What I am saying is that from the consumers point of view, he was not in default since he renegotiated an agreement. From the creditor's point of view, he was screwed by the consumer since less than the full amount was paid.
It is something we all need to remember if and when we embark on a similar plan in the future.
The good news seems to be that the creditors are being specific with the reasons for less than full payment. Delinquencies tied to the overall real estate mess might be viewed more favorably by creditors in a manual review.
@Anonymous wrote:
Now my score is 709. I was never late, does the rate/status suggests that I was past due,
Unfortunately you were permanently "late" on all subsequent payments due; since the creditor will never receive full payments "on time" again. Don't you have to be late with payments to obtain a short sale? The entry at least stated that you had no more than three lates.
The good news seems to me that you are out from under the loan obligation, and still get to keep a 709 credit score. Many here are still trying to obtain700.
I am sure the whole ordeal was rather stressful for you, but it was after all an investment gone bad, not the loss of your primary residence.
Please don't take my explanation in a negative way. I am not being critical of you or your actions. I am just trying to get you to look at the situation from a different perspective.
Also from a different perspective.... 709 is still a pretty good score and it is most likely that if you didn't renegotiate your way out of the deal, your score would have been much lower.
Congrats for ending up with a decent score in spite of the circumstances.
