HOw much will HAMP loan mod hurt my credit.

If you need the loan mod, you shouldn't worry too much about your credit. It will likely take a hit, but how you handle all your other bills are an important part of your credit profile. A better question might be, what will happen to your credit if you do NOT do the mod?

If a loan modification will help you manage your mortgage payments and avoid foreclosure, it is likely a much better option for you than not doing the loan mod. Having a foreclosure or short sale will result in a much larger hit to your credit score and you will need to undergo a waiting period before you are eligible again.

Loan mods will affect your credit standing and credit score.. Also, the HAMP program is not funded by the federal government, but rather your existing lender.. it's just that the government is insuring the loan against default in the event you end up in foreclosure. It is not safer or better to have a loan mod since most lenders require you be in default before you can apply, which is why it's bad for your credit.. for loan modifications, the formula is very simple. take all the household income (spouse included, even if they are not on the original mortgage), and multiply by 31%. (example: $3000 monthly income X .31%=$930) If your existing payment is more than 31% of your income, then they will modify your payment to match the 31% number.. they first will extend the loan, in some instances to 40 years, then they will drop the interest rate, and if that does not get you to 31%, then as a last resort they will do a principal reduction. Understand that participation in the HAMP program is voluntary, so the lender does is required to offer a loan medication. From my years of experience in lending, I would say that 90% or more of the folks who apply for a HAMP loan are either denied, or get very little payment relief.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com