How Will Mortgage Assistance Impact My Financial Future?

According to FICO, a foreclosure could lower your FICO® score by 100 points or more.

Relief options that modify your mortgage terms, suspend or reduce your payments, or allow you to sell or leave your home and avoid foreclosure may also have negative impacts on your credit. The impact to your credit score will depend on what’s being reported (i.e., the action being pursued, any late payments reported, etc.) as well as on your overall credit profile.

Contact your mortgage servicer to understand how specific relief options may impact your credit.

It’s important to remember that you can build your credit back up over time.

If you’re successful in securing a loan from a financial institution (such as a bank or credit union) while enrolled in a mortgage assistance program, your terms may be affected. This means the interest rates may be higher, along with other possible impacts to your loan agreement.

Depending on the mortgage relief options you use, your eligibility for loan refinance may be impacted in the short term.

Modifying your loan could extend the lifetime of your mortgage (i.e., the amount of time required to pay it off). While this helps to reduce your monthly mortgage payment in the short term, it means you may be making payments for longer than you planned. Be sure to plan a monthly budget that will allow you to continue paying your mortgage well into the future.