Loan Modification and Bankruptcy

Loan Modification and Bankruptcy

The effects of a bankruptcy on your client’s credit report can be devastating. The average decrease in FICO score from a bankruptcy that your clients can expect is 100 points. Your clients should have their credit pulled immediately after a bankruptcy to verify the accuracy of the items that should be reported on their credit report as included in the bankruptcy. This is crucial to rebuilding your client’s credit after a bankruptcy. Typically if a client is in bankruptcy a lender will not do a loan modification at that time. It will be necessary to wait until the bankruptcy has been finished and then there is a much better chance of doing a loan modification. Keep in mind that loan modifications and short sales will still effect the credit score but not to the extent that a foreclosure will. It may be necessary to see a credit repair specialist after the fact when using one of the processes above. One that I refer my clients to is www.expresscreditrepair.org. They are definitely the rolls royce of the credit repair industry and are very good at getting your fico score raised quickly.