Loan modification may not have an adverse effect on your credit, but missing out on your mortgage loan payments definitely will. You need to do everything you can to avoid foreclosure, because it will harm your credit file for a long time. The effect of loan modifications on your credit rating will depend on what is negotiated and how the lender reports your situation to the credit bureaus. Mortgage loan modification involves changing the terms of a mortgage loan to make the monthly … [Read more...]