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6 Months reduced mortgage plan, how it will affect my credit?


successnow
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I have my house and a rental, I was able to work out a deal with both bank to reduce my payment on each one of the house to a label where I can afford it. I will keep sending my reduce payment every months as agreed to each bank for a period of 6 months. They told me that during th 3rd months I call the bank and work out a permanet deal, most likely they will work with me. The bank said that every payment that I send it will beput in a "suspence account" or something like that. so my payment is originally $2268, I was able to bring it down to $1612, so I send $1612 they will put that amount in the suspence account, then the next months when I send my next payment they will take whatever was needed to complete the original $2268 and apply it to my account, and the process starts again. They told me that my credit report will be showing 30 days late, but paid as agreed.

Question: has anybody done this before that can tell me what kind of hit you get on your report?

Is there anybody that knows about this and can tell me their experience? please help!!!

Thank you.

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It will probably be a year after your first "on time" payment before you could qualify for anything else.

I would suggest that you keep your credit cards active and paid on regularily, as last payments on any of those will just compound the problem.

As far as how much your scores will be impacted? I would think that after the 2nd "late payment" your scores will be about 100 points lower. If you are able to keep track of this type stuff, please give us some feedback

Charles

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I hope you have this arrangement in writing from the bank/servicing company. Also, I hope they gave you a schedule of payments and told you if there are going to be extra fees (also in writing). If not, please get them to do so at once. Keep an accurate record of every dime you send and where the funds go. Make sure that they actually credit your account when you have the funds for the payment and not leave it in the suspense account. Generally the servicers will continue to charge you late fees and other fees when you are on this type of system.

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