What is a Credit Repair Company?
A credit repair company is an organization that helps you understand and repair your credit by analyzing your credit report and disputing inaccuracies with credit bureaus and creditors. Credit repair companies have the experience and knowledge to tackle credit issues that could be difficult to resolve on your own.
This expertise makes the credit repair process easier for customers. Companies know what to look for, understand the process needed to fix inaccuracies, and are informed on what clients are legally entitled to request from both credit bureaus and creditors.
Your Loan Mod Was Denied…Now What?
Was Your Ratio Correct?
If you believe you were eligible for a loan modification, but didn’t know your DTI (debt to income ratio) or NPV and the optimal way to structure these ratios for your lender, then you were setting yourself up for failure from the get-go. If you’re unsure about how to structure these figures, then it’s best for you to hand your loan modification over to a negotiator who can handle the process for you. An experienced loan modification representative can help you restructure the way your financial situation is presented to give you your best chance at a great loan modification.
Do Loan Modifications Affect Your Credit?
If you're thinking about a loan modification, chances are your credit has already taken a hit. "Most customers in the process are already delinquent," Broeker says.
When you proceed with a loan modification, a comment code will appear on your credit report that says something like "paying by modified terms."
But getting back on track with payments could have enough of a positive effect on your credit over time to make up for this derogatory remark.
If you're still unsure whether a loan modification is a good idea and hesitate to extend your loan term, remember that you can refinance later, when you're on better financial footing.
"I don't think loan modification fits everybody," Broeker says, "but it's the single best tool we have from a loss mitigation perspective to keep people in their homes."