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The hard part about Loan Modifications in San Diego is you really don’t know what you’re going to get until you get there, so it’s difficult to know when/if Loan Modifications disappear at some point in the future.  However, I know two things for a fact at this moment.

#1.  There are plenty of Loan Modifications being approved in San Diego as we speak.  As expensive as foreclosure is for the Banks, I don’t see that changing any time soon.

#2.  So far, we have not seen a single instance where a Loan Modification has hurt someone’s credit score in San Diego.  I will let you know if this changes.

The bottom line:  Most Loan Modification companies are no good.  We already know that…  There are only a few I haven’t had a bad experience with and only 1 that continues to impress me with their service/results.  This is why I recommend Loss Mitigation Advocates for anyone considering a Loan Modification.  If you would like to contact LMA, call 1.866.740.4262 or visit their website at www.lmanationwide.com.

Derrick Evens
Mr Credit San Diego
858.571.0271
AskMrCredit@yahoo.com

I get this question a lot.  It seems as though everyone has either had their loan modified or has at least attempted to do so.  And why not?  If you can get cheaper payments or balance forgiveness by just asking, then what’s the harm?  To date, I’ve not seen a case study where the narrative (grouping of words) on an account that has been modified ended up negatively affecting the credit score.  In most cases, there isn’t a narrative at all showing a loan mod ever took place!

However, it’s important to keep in mind that Loan Modifications are a relatively new phenomenon and it’s totally possible that future versions of the credit scoring model will make adjustments according to what eventually happens with people who have had their loans modified.

Remember, the purpose of the credit score is to help Lenders predict the likelihood that the Consumer will become 90 days late in the next two years.  They developed the system after years of research and millions of case studies.  There has never been such an abundance of loan modifications before in our history.  So, Fair Isaac will have to review what happens with the people who had their loans modified over the two years following their modification to determine how many of them eventually became 90 days late.  If many did, then I will expect the scoring model to adjust and give a negative value to the “loan modified” or “terms modified” narrative.  If many of them did not, then we may see no effect at all.

For now, Mod-Away!

Derrick Evens
Mr Credit San Diego
858.571.0271
AskMrCredit@yahoo.com