photo credit: TheTruthAbout
Here’s some research you will want to read if you or someone close to you is considering a loan modification, short sale, or walking away from their property.
Impact on Consumer VantageScore Credit Scores Due to Various Mortgage Loan Restructuring Options
This study evaluates the effect of various mortgage programs on consumers’ VantageScore® credit scores, along with other consequences homeowners potentially face if unable to make timely mortgage payments: short sale, foreclosure, or bankruptcy.
Key findings in the study include:
- Consumers should try to get a loan modification before falling seriously behind on payments.
- Certain loan modifications can positively impact the credit score.
- Bankruptcy has the most significant impact on a consumer’s credit score and will have an impact for a minimum of seven years.
- Credit scores can be raised fairly quickly when a consumer gets current on all debts and stays current for at least nine months.
The study only covers the impact on one type of credit score, but the detailed information is helpful in understanding better how lenders look at significant financial events in today’s challenging real estate market.
{ 1 trackback }
{ 0 comments… add one now }