Personal Investment & Financial Planning Q`s/FICO score after loan modification


Not sure if you can answer this, but I'll let you give it a try.

I spent 3 months trying to get refinanced or a lower interest rate from Bank of America.  they finally told me to apply for a hardship loan modification.  I did, and they told me I had to have a trial period.  I passed the 4 month trial period, but they didn't process the paperwork until 2 months after that.  For those two months, I continued making payments at the trial rate, on time, and they reported me late 30 days for those 2 months because the payment was smaller than the previous that I had paid.  I'm pissed.  My FICO score plummeted from 810 to 696.  I've disputed the late reporting.  Now for my question, should I do anything else?  How can I get my FICO back over 800?  I have no other bad reports on my report.  I have NEVER missed a mortgage payment.

Fellow All Expert - thanks for your service.

Sorry to hear about your problem Carl.

Here the steps I recommend:

1.   Try to resolve the dispute with the bank.  If you were only entitled to the reduced payment for the first four months, it does not matter how they processed the paper work.  If you offer to pay whatever the short fall was between the higher monthly payment after the trial period and what you actually paid, plus interest and penalties, they will probably agree and remove the negative report.

2.   If the bank will not cooperate on this basis, you have legal remedies to get the negative report removed.  For the proper procedure, please refer to this link, which is from the Federal Trade Commission. .  It explains your rights and the proper procedure for disputing a negative comment on your credit report.

3.   If all else fails, and you are confident in the merits of your position, you can sue the bank in small claims court.  I did this once against the claim of a large national phone company.  After unsuccessfully disputing the claim with the company, I started getting calls from collection agencies and this went on for over a year.   There was a negative report on my credit report, which came up when I applied for a mortgage, so I filed a claim in small claims court (you can file wherever the company does business it does not have to be where they are headquartered.)   This finally got their attention.  I was contacted by a lawyer representing them who agreed to drop the claim about $300 and to remove the negative report.   The cost of going to court for the company exceeded the size of the dispute.   And I knew I would win!

Good luck.  

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John Guilford Kerr, CFP, CFA


I can answer questions related to personal financial planning, asset allocation, private equity investment analysis, fixed income, mutual fund, ETF, and stock questions, estate planning (basic), education planning, insurance planning, and business financial planning.


I have thirty-eight years of experience in finance, in the U.S. and internationally, for both public and private corporations. I have specialized in personal and small business financial planning and investment advisory services since 2005.------ - ten years commercial banking, New York, Paris, Houston, Charlotte, Atlanta---- - six years treasurer of a publicly traded health care company, Philadelphia----- - six years international project finance (Bechtel), San Francisco, Manila, London----- - five years head of international hotel development (Hyatt), Chicago---- - eleven years personal financial planning.----- Registered Investment Adviser, Hawaii---- FINRA General Securities Representative - Series 7---- FINRA Uniform Combined State Law - Series 66---- Resident Producer Insurance License, Hawaii-, Accident and Health or Sickness, Life, Variable Life and Variable Annuities

CFA Institute of Hawaii---- Certified Fiancial Planner Board of Standards, Inc-----. National Association of Personal Financial Advisers----- Financial Planning Association----- National Association of Tax Professionals

Project Finance Yearbook - 1997 / 1998 "Manila Water & Sewerage System Concession"----- "The Road To Helsinki, An Analysis of European International Relations Leading to the Conference On Security and Cooperation in Europe"' published 2015.

Certified Financial Planner, Certified Financial Planner Board of Standards, Inc.---- Chartered Financial Analyst, CFA Institute----- Certificate in Financial Planning, Boston University---- Masters in Foreign Affairs - University of Virginia---- Bachelors of Arts, Government - Ohio University

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