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.
What Are the Benefits of a Loan Modification?
Loan modification can change one or more of the terms of your loan to provide relief if you are financially stressed by the coronavirus pandemic or otherwise. Modifications can include:
Reducing your interest rate
Changing a variable interest rate to a fixed one
Extending the term length
The extended loan term compensates the lender for the reduced interest rate or payment. So your 30-year mortgage might become a 40-year one, Broeker says.
But in exchange you'll get:
A reduced payment. If you can reduce your monthly payment, it could be just the relief you need to pull through tough times.
A chance to keep your home. Banks prefer to avoid foreclosure because it's an expensive process. The best outcome for the homeowner and the bank is a loan modification to make continued payments possible.