Curb Posted September 17, 2010 Report Share Posted September 17, 2010 Does anyone have experience or knowledge of how mortgage forbearance plans really affect credit?I came close to losing home a few years back after spouse was laid off for a significant span. The mortgage company placed us on a Forbearance for 10 months or so and advised that we would do a modification at the end. Well, my wife went back to work a few weeks before the mod. and we were advised that we did not qualify because of restored income. They demanded the whole arrearage immediately, blah blah blah. Anyway, we were then placed on a repayment plan that states "Forbearance Agreement". The terms state in writing that we pay our "regular monthly payment" of X amount while the additional X amount goes towards the arrearage. This plan is in effect for 24 months. We are 13 months complete. Well, our credit reports are bold and simple that we were 120 days late for the past 24 months. To me this does not seem right. I have read that a "Forbearance" plan may help avoid negative reporting. I have not attended to this issue yet because I wanted to be totally caught up with the mortgage co. first, and I wanted to gain more knowledge on the subject. On one hand I am thinking a goodwill letter may be my only hope. But, on the other hand I am thinking that , even though I am "behind", the arrangements appear to state that the regular payment is being made every month. I just don't know for now. Link to comment Share on other sites More sharing options...
Curb Posted September 22, 2010 Author Report Share Posted September 22, 2010 Anyone have any opinion on what to do with this situation? Please. Would it be best to attempt a dispute with the bureaus and supply the documentation showing that we are paying according to a repayment plan? Or, should I just try contacting the mortgage co. to see if they can help me and show that we have been paying according to their terms? Link to comment Share on other sites More sharing options...
mac123 Posted September 22, 2010 Report Share Posted September 22, 2010 curbI know it is unfair ... but Chase has been reporting us the same way...We have been at this Mod Process for 15 months and when we made our forebearance payments they did not change their credit reporting at all ....still showed us late .... I think 120 daysHopefully they will change it ... our credit has taken about a 120 point drop ....Saving money thou !!mac Link to comment Share on other sites More sharing options...
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