How does the home affordability program impact my credit score?

[hopefulfirefly]

I've been laid off and I'm the sole borrower on my mortgage. My current interest rate is 6.8%. I have applied for the Home Affordability program which could possibly reduce my interest rate drastically if I am approved for it. I have inquired about how it will reflect on my credit score and they are telling me that for the 3 month "trial" period my loan will be reported as delinquent but after that there will be nothing reported. I've never been late on my paying my bills, my credit score is 776. How much will it impact my score if it shows that I'm delinquent for 3 consecutive months? Thank you!

[jeffrey]

Nobody knows exactly how much it will impact it because the scoring methodology is kept secret, but it will definitely have an impact and you should expect the score to head south. Of more concern might be universal defaults on any credit cards you have if you carry a balance -- a delinquent payment on a credit report can set those rates off to the highest interest which can exceed 30%