LOAN MODIFICATION CREDIT REPORTING TRAPS
In our years of fixing credit reports, we have seen a number of errors on peoples’ credit reports caused by the banks. These include:
2. Refusing to remove late payments as promised. Some lenders agree to remove late payments in exchange for entering into a loan modification program. Problem is that when the loan modification is done, the lender refuses to remove the late payments.
3. Lender refuses to honor its commitment to give you a permanent loan modification. OK. This is not so much a credit issue as much as it’s an ethical one. We have seen loan servicers promise a loan modification and then renege after the consumer made all of the trial period loan modifications.