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Loan Modification. ActiveRaining beats Googleing hands down!

February 26, 2010

Loan modification. ActiveRaining beats Googleing hands down!

(Got any thoughts for me?)

Question MarkI have a past client who owns a significant piece of property and has requested a loan modification and been approved by Citibank, although it seems to be stalled at the approval, he has not heard anything since being “approved” since the end of last year. A friend of his suggested he speak to a mortgage banker at Citi, a friend of a friend type of thing. Two things have me mystified and more than a bit befuddled here.

  1. The mortgage banker (mind you, for Citi) told him to skip a payment to get their attention and push the process through faster. He has never been late, never skipped a payment by the way.
  2. Immediately after applying for the modification his credit score took a hit, he was downgraded from a strong credit score to a weak credit score with one reporting agency. The other 2 report him as having a good credit score, down from strong. Apparently Citi reported the loan modification faster than you can say Jack Rabbit, prior to even actually putting it in place!

I told him I believed that the advice to skip a payment was a bad idea, all the way around. I believe the mortgage banker was in error and highly irresponsible in telling him this. My concern is that they could start foreclosure hard and fast with him if he skips even one payment, and I told him so. If he was upset about the hit to his credit score then, he sure won’t be happy if that happens.

I admit I have not had any experience with loan modification, other than what I have read. And what I read and hear about is not always good. Any thoughts? (When I really want to know what is happening, ActiveRain beats Google hands down.)

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