Unemployed-Mortgage Payment Plan

Anonymous · ‎05-30-2007

Hi all,

I lost my job six months ago and as a precaution I am looking to apply for a mortgage payment plan (to temporarily reduce my payments) as well as defer my student loan payments. It should be noted that my accounts are in good standing and I have made all my payments on time. My question is whether or not the actions listed above will lower my credit score. After reading some other threads, it seems the school loan deferment is not likely to decrease my credit score. That said, I have not been able to find any information about mortgage payment plans. The mortgage loan officer said that they report to credit agencies that payments are being made but the account is not current. Will that lower my credit score? Has anyone had any experience with this? I have savings set aside, so I am trying to weigh dipping into savings versus temporarily restructuring my monthly payments. Thanks for any feedback in advance.

Best Regards.

Tuscani · ‎05-30-2007

Making payments but not current? What exactly do they mean by that?

Anonymous · ‎05-30-2007

Hopefully I can clarify a little. The rep I talked to said it would be reported to the credit agencies that I was making partial payments but my account wouldn't appear as fully paid up. My account wouldn't show up as "current" (or fully paid) until I was to pay back what I hadn't paid during the partial payment period. He also said that it would be noted that I was working with them on some sort of payment counseling plan. I realize it sounds a little convoluted, but hope this helps.

Tuscani · ‎05-31-2007

dmichael wrote:
Hopefully I can clarify a little. The rep I talked to said it would be reported to the credit agencies that I was making partial payments but my account wouldn't appear as fully paid up. My account wouldn't show up as "current" (or fully paid) until I was to pay back what I hadn't paid during the partial payment period. He also said that it would be noted that I was working with them on some sort of payment counseling plan. I realize it sounds a little convoluted, but hope this helps.

Ok.. current is good.. that means they shouldn't report anything as late. However, the notation of you being on a payment plan will have a negative impact.

Anonymous · ‎05-31-2007

Thanks Tuscani. I thought that might be the case. I think I will draw from savings and pay in full each month to preserve my credit score. Much appreciated.

Tuscani · ‎05-31-2007

Good luck!