info@storyhousere.com   |   (434) 260-1435
2110 Ivy Road   |   Charlottesville, VA 22903
facebook instagram
Story House Real Estate Story House Real Estate
Navigation
  • ABOUT US
    • Who We Are
    • Mission Statement
    • Our Philanthropy
    • Our Success Stories
      • Client Profiles
      • Client Testimonials
      • Press & Recognition
      • Our Sold Homes
    • Join Our Team
  • SELL A HOME
    • Find Your Home Worth
    • How We Sell
    • Seller Profile
    • Home Sale Calculator
  • BUY A HOME
    • Our 10 Step Process
      • Consult Your REALTORยฎ
      • Arrange Your Financing
      • Find Your Home
      • Prepare a Purchase Offer
      • Contract for Your Home
      • Conduct Inspections
      • Finalize Your Financing
      • Prepare for Settlement
    • Buyer Profile
    • Our Listings
    • Search All Active Listings
      • Search by County
      • Charlottesville Area Neighborhoods
    • Affordability Calculator
  • LET’S CONNECT

Just in from CNNMoney; Trial Loan Modifications DO Hurt Borrowers’ Credit

Only weeks ago, I published a post with updated information from an advanced education class I was taking though the CRS (Certified Residential Specialist) program for Realtors, that was discussing different types of distressed sales and loan modifications to your mortgage, and how they would impact your credit score. In that class, we learned that borrowers were being told that taking advantage of the government HAMP (Making Home Affordable) program should not negatively effect their credit score, and that we should encourage borrowers to strongly consider this option before looking down the road of a short sale or foreclosure. Today, CNNMoney exposes several stories from people who have utilized the program, and whose credit scores are mysteriously dropping.

For some, a drop would be completely expected. For those who are behind on mortgage payments and who take the new mortgage arrangement, it is reasonable to expect that their credit would have already been damaged to some extent, just from the mortgage payments that had been missed. However, many other people have been encouraged to look at the HAMP program to re-arrange their mortgage and reduce their payments, even before they are behind on a payment. It is these people who have been squeaking by, trying to make ends meet and who have been making payments, who were being told (even by mortgage officers themselves) that their credit would not be effected. One of those stories is followed in the article today;

Axelrod, a municipal employee who lives outside Chicago, entered a trial mortgage modification program this spring.

He had not fallen behind in his mortgage, but he was finding it harder to make ends meet after his overtime was cut and his property taxes skyrocketed. Told it would not hurt his coveted 750 score, Axelrod secured a $565 reduction in his monthly payments.

Eight months later, Axelrod is still stuck in the trial modification, trying to satisfy his loan servicer’s endless requests for documents.

And to his horror, his credit score has plummeted to 644.

“It’s completely destroyed my credit,” said Axelrod. “If I had known it would affect my score, I would have never entered the program.”

Representatives at JPMorgan Chase (JPM, Fortune 500), which services Axelrod’s loan, are instructed to tell applicants that entering a modification could impact their credit histories, a bank spokeswoman said.

Despite his weakened credit score, there is at least some good news for Axelrod: After being contacted by CNNMoney.com, JPMorgan Chase said his permanent modification had been approved.

[From Trial loan modifications hurt borrowers’ credit histories – Dec. 28, 2009]

According to CNNMoney;

The coding alone can impact credit scores, which measure a consumer’s financial health and range from 300 to 850 under the FICO system. The severity depends on how many payments the borrower missed before entering the program. Those who were current in their mortgages could see their scores fall up to 100 points, according to the Treasury Department.

[From Trial loan modifications hurt borrowers’ credit histories – Dec. 28, 2009]

For now, it sounds as though a mortgage modification may still certainly have its benefits over a short sale or a foreclosure, if you want to keep your home. However, it is important for everyone to know that for what we can tell, it does not come as “risk-free” as it may have been advertised. This is sure to be a topic we’ll be hearing about more soon, but until then, please be sure to consult your tax advisor and your attorney for advice before beginning a mortgage modification program.

[Hat tip to Lani Rosales at Agent Genius for pointing out this important article.]


Posted on December 29, 2009 Leave a Comment

Leave Your thought on this post Cancel reply

You must be logged in to post a comment.

Categories

  • Achievements & Recognition
  • Affordability & Financing
  • Blog
  • Buying
  • Charlottesville Area
  • Charlottesville News
  • Charlottesville Real Estate
  • Choosing a Realtor
  • City of Charlottesville
  • Client Profiles
  • Client Testimonials
  • Community
  • First Time Homebuyer
  • Historic Charlottesville
  • Home Repair & Maintenance
  • Landscaping & Exterior
  • Lifestyle
  • Market Reports
  • National Real Estate
  • New Construction
  • Our Favorite Things
  • Real Estate 101
  • Real Estate News and Info
  • Selling
  • Short Sale & Foreclosure 101
  • Sold Homes
  • Staging to Sell
  • Uncategorized

Contact Us

    Subscribe to Newsletter
    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

    View Instagram post by storyhousere

    Jul 1

    8 0
    Open post by storyhousere with ID 18111986974447812
    COMING SOON | ๐Ÿ  34 Zephyr Road Palmyra VA 22963 | MLS #666386 | $375,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 2 full bath | ๐ŸŽ‰ OPEN HOUSE Sunday, July 13th from 11 AM - 1 PM!

Elegant light-filled ranch in a prime Lake Monticello location with outstanding curb appeal! This upscale split-bedroom floor plan features multiple rooflines, oversized Palladian windows, vaulted ceilings, and hickory hardwood floor. The spacious living room includes a gas fireplace and opens to the kitchen with granite countertops, maple cabinetry, a breakfast bar, and an eat-in area, plus a separate formal dining room.

The primary site offers vaulted ceilings, hardwood flooring, a large walk-in closet, double vanities, and a walk-in glass-enclosed shower. Additional bedrooms are located on the opposite side of the home for privacy. A vaulted sunroom overlooks the fenced backyard and mature landscaping. Additional features include a side-load garage, paved driveway with extra parking, and established plantings.

Conveniently located near the Turkeysag Gate, shopping, dining, and walkable to Beach 4.

 ๐Ÿ“ฉ Email showings@storyhouseRE.com with questions!

 #Charlottesvillerealestate #StoryHouseRealEstate #StoryHouseRE #startyournextstory #comingsoon #Charlottesville #StartYourStoryWithUs
    View Instagram post by storyhousere

    Jul 1

    6 0
    Open post by storyhousere with ID 17988016448681406
    COMING SOON | ๐Ÿ  1025 Bristlecone Lane Charlottesville VA 22911 | MLS #666383 | $425,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 3 full bath | ๐ŸŽ‰ OPEN HOUSE Sunday, July 6th from 1 PM - 3 PM!

Welcome to 1025 Bristlecone Lane, a stunning home nestled in the heart of one of Charlottesville's most sought-after neighborhood, Forest Lakes. This beautifully designed property offers the perfect blend of modern elegance and timeless charm. Step inside to discover an open-concept floor plan bathed in natural light, featuring gleaming hardwood floors, high ceilings, and a cozy propane log fireplace that anchors the living space.

The gourmet kitchen is a chef's dream, boasting quartz countertops, and stainless steel appliances. The primary suite is a true retreat, complete with a spa-like ensuite bathroom and a walk-in closet. Additional bedrooms are generously sized, offering comfort and flexibility for family or guests. Outside, the private backyard features a covered patio ideal for summer barbecues and a private surroundings.

Located just minutes from 29 N Charlottesville, this home provides easy access to top-rated schools, shopping, dining, and outdoor recreation. The property features 3 bedrooms (2 on main level), 3 walk in closets, and 3 full baths. Location, Main Floor Primary, and Move In Ready. 

๐Ÿ“ฉ Email showings@storyhouseRE.com with questions!

 #Charlottesvillerealestate #StoryHouseRealEstate #StoryHouseRE #startyournextstory #comingsoon #Charlottesville #StartYourStoryWithUs
    View Instagram post by storyhousere

    Jun 26

    7 0
    Open post by storyhousere with ID 17984094497700513
    HOT HOMES ON THE MARKET ๐Ÿ”ฅ๐Ÿ 

Your Next Chapter Starts Here!
From sleek, low-maintenance gems to hidden wooded retreats and vibrant neighborhood favoritesโ€”this weekโ€™s featured listings have it all.

๐Ÿ’ซ Stylish, move-in ready homes
๐ŸŒณ Peaceful privacy or buzzing community living
๐Ÿ“ All in locations youโ€™ll love

Find your perfect match before someone else does.
Which one is calling your name?

FEATURED LISTING | ๐Ÿ  1103 Mill Park Drive Ext Charlottesville VA 22901 | MLS #665911 | $350,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 2 full/1 Half bath | ๐ŸŽ‰ 

FEATURED LISTING | ๐Ÿ  820 Swede St Charlottesville VA 22901 | MLS #665347 | $500,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 2.5 bath | ๐ŸŽ‰ 

FEATURED LISTING | ๐Ÿ  83 Mossy Creek Court Zion Crossroads VA 22942 | MLS#665020 | $675,000 | ๐Ÿ›๏ธ 4 bed ๐Ÿ› 3 bath | ๐ŸŽ‰ OPEN HOUSE Sunday, June 15th from 1 PM - 3 PM!

FEATURED LISTING | ๐Ÿ  1261 Old Trail Drive Crozet VA 22932 | MLS#665019 | $579,900 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 3.5 bath | ๐ŸŽ‰ 

FEATURED LISTING | ๐Ÿ  4760 Bluejay Way Charlottesville VA 22911 | MLS#665043 | $370,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 3.5 bath | ๐ŸŽ‰ OPEN HOUSE Saturday, June 14th from 12 PM - 2 PM!

FEATURED LISTING | ๐Ÿ  127 Kathys Lane Troy VA 22974 | MLS#664146 | $500,000 | ๐Ÿ›๏ธ 4 bed ๐Ÿ› 2.5 bath | ๐ŸŽ‰ 

FEATURED LISTING | ๐Ÿ  4286 Sunset Drive Charlottesville VA 22911 | MLS#664112 | $500,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 2.5 bath | ๐ŸŽ‰ 

NEW PRICE | FEATURED LISTING | ๐Ÿ  6183 Spring Hill Rd Ruckersville VA 22968 | MLS #663532 | $315,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 2.5 bath | ๐ŸŽ‰

FEATURED LISTING | ๐Ÿ  1184 Partridge Lane Charlottesville VA 22901 | MLS#664253 | $385,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 3 bath | ๐ŸŽ‰ 

๐Ÿ“ฉ Email showings@storyhouseRE.com with questions! 

#Charlottesvillerealestate #StoryHouseRealEstate #StoryHouseRE #startyournextstory #comingsoon #Charlottesville #StartYourStoryWithUs
    View Instagram post by storyhousere

    Jun 26

    6 0
    Open post by storyhousere with ID 18094559707716121
    ๐Ÿก Just Listed in Charlottesville!

This charming brick rancher offers one-level living just minutes from downtown. With cozy fireplaces, a sunroom, vintage bar, and walkable parks, itโ€™s the perfect blend of comfort and convenience.

JUST LISTED | ๐Ÿ  608 Davis Avenue Charlottesville VA 22901 | MLS #666120 | $700,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 3 full bath | ๐ŸŽ‰

๐Ÿ“Open House: Sunday, June 29th, 12 PM โ€“ 2 PM!

๐Ÿ“ฉ Email showings@storyhouseRE.com with questions! 

#Charlottesvillerealestate #StoryHouseRealEstate #StoryHouseRE #startyournextstory #comingsoon #Charlottesville #StartYourStoryWithUs
    View Instagram post by storyhousere

    Jun 24

    2 0
    Open post by storyhousere with ID 17914015353107575
    COMING SOON | ๐Ÿ  608 Davis Avenue Charlottesville VA 22901 | MLS #666120 | $700,000 | ๐Ÿ›๏ธ 3 bed ๐Ÿ› 3 full bath | ๐ŸŽ‰ OPEN HOUSE Sunday, June 29th from 12 PM - 2 PM!

Experience the ease of one-level living in this well-maintained brick rancher, ideally located just off Route 250 and less than a mile from downtown Charlottesville. Enjoy the perfect blend of city convenience and neighborhood charm! Step outside and take advantage of walkable access to Unity Fieldโ€”right across the streetโ€”for a casual soccer game or some playtime with your dog. Northeast Park is just around the corner, offering even more green space and recreation.

Inside, you'll find timeless features including two cozy wood-burning fireplaces, a sunroom just off the kitchen, and aprimary bedroom with en suite bath. The spacious, nearly level backyard includes a storage shed and is perfect for gardening, entertaining, or simply relaxing. Downstairs, a large basement rec room with a built-in vintage bar invites fun and flexibility. Thereโ€™s also ample unfinished space ideal for storage, a workshop, or your favorite hobbies.

With plenty of off-street parking, this home truly has it allโ€”space, charm, and an unbeatable location. Donโ€™t miss your chance to own a classic Charlottesville home!

 ๐Ÿ“ฉ Email showings@storyhouseRE.com with questions!

 #Charlottesvillerealestate #StoryHouseRealEstate #StoryHouseRE #startyournextstory #comingsoon #Charlottesville #StartYourStoryWithUs
    Story House Real Estate logo
    STORY HOUSE REAL ESTATE
    2110 Ivy Road
    Charlottesville, VA 22903
    Phone: (434) 260-1435
    facebook instagram
    LICENSED TO SELL REAL ESTATE IN THE COMMONWEALTH OF VIRGINIA
    REALTOR icon Equal Housing icon
    ยฉ 2025 Story House Real Estate. All Rights Reserved.