xoneinax said:Did some other recent thread (if you believe the OP and his story about a Kuggerand hoarding 'friend') here detail the decline ? Think it was about 300 points or so.ok so let's assume a catostrophic effect on one's FICO.

the question is: who cares?

if you own your cars and your only credit product is your house loan... you don't need credit for anything.

the 1% Cash Back you're missing [$400/yr?] will be mitigated by the $200,000 you'll save over the life of the loan.

this makes no sense.

if I posted a 50% OFF coupon for Amazon that was only for NYFD firemen... everyone would use it.

but save $200,000 from Indybank and all the trolls dogpile on this thread.

ArbolLoco said:pj737 said:ArbolLoco said:Solobear said:I just think the suggestion of making late payments to get a better mortgage rate is absurd.So are you saying that if I offered you $60,000 [est. savings over four years], that you wouldn't take a FICO hit of 40 points?

I highly doubt being 60 days late on a mortgage payment would only drag your score down 40 points. Unless of course you're starting point is in the 500's. I wouldn't be suprised to see my 780 FICO go to 650 or less after 60 day late dings on all credit bureaus.well maybe we should try and figure out what the damage is and whether the attendant reduction in score is worth hundreds of thousands of dollars over the lifetime of the loan.

I think the easier and safer route would be to simply refinance with a zero cost loan. If the lender won't consider than tell them you will take your loan somewhere else. If you skipped payment on a couple months and tried to pull something similar to what your client did AND the lender says nope... sorry. Than you are hosed because you can't refinance somewhere else since your repayment history is shot and your FICO is in the gutter.

I think there might be some misunderstanding on the part of the readers, but just in case, I would like to get clarification on this.

First, some people are weighing in if it is worth dinging ones credit in order to same X amount per year for the next Y years. If I understand correctly, nothing in the OPs message indicated that line of causality.

In other words, OP did not say that his client chose NOT to pay for 2 months in order to qualify for the rate reduction.

If that is the case, perhaps it is a clever trick, albeit a less than honest one.

If that is not the case, then call it lucky, perhaps.

OP, do you mind giving more information on the case, including perhaps the following:

1. Was the high rate a result of a rate adjustment?
2. What was the FICO score before the 60 day late showed up?
3. Did the score in fact drop by only 40 points? As another poster mentioned, a "friend" of his experienced a little speedier ride down on the way to foreclosure.

P.S. I just saw the comment right above this one, which partially answered my questions.

ArbolLoco said:No fancy feat here, I just sent them a letter, and they immediately sent her back a form letter with the new rate offer... a savings of about $950/mo. just because we asked.

No fighting, no haggling and no negotiation. Just a simple letter.

Now this may have something to do with the fact that she is a couple of months in arrears, but it might be worth it to take a ding to your credit report to save $12k annually.

Anyone else have any luck with "workouts" with other lenders?

Do tell.

What a bunch of brainwashed freaks!!!

Green for you OP, how about we just AOR take 90% of the credit and then right the letter WooHoo. Then pay off the cards back to 50%. The score would go back up without any side effect.

Can all the JERKS just leave, there are some people who this would help greatly!!! Maybe they won't get divorced/commit suicide/kill your freakin mother for a quarter. You know the important things in life.

MAN I don't think I've ever seen a more divided vote on a thread, like the other poster said "lets just stick to $5 burger king coupons".

We aren't here to decide what is right, just to report what is available. WTF is your problem!!

ArbolLoco said:high rate was the rate for a non-owner occupied property.

I would get into FICOs but that's closer to that line of confidentiality that I would like.

I'll try to get some info about how many points or at least some range.

And no this was not planned. There was an economic catastrophe of sorts that I was brought in to sort out... the loan is only one part of the equation.

30 day late is worth 50-100 points IMHO, 1 30 and 1 60 was worth 200 points to my brother. The 30 day late was a mortgage F* from the bank. But since the average person doesn't know what we know, they'll just let the late stay.

750 fico to 550 fico

Thanks OP, this just might be the most important thread on FWF!!!

cricky2pare said:kevinkevinkevin said:I like the higher rates because it allows me to deduct more on my taxes. So no, I'm not going to try this.Translation: I will give you one dollar, you give me 25 cents back.K^3's humor went over everybody's head.

Shoulda held out for reduction in principal.

ArbolLoco, Kudos to you. First, you are representing your client or friend and did a wonderful thing.
Second, you are advising that people who are stuck at a high rate may be able to "refinance" without the cost of refinancing, just by writing a letter. That is wonderful news.

Heck, you might be able to play off of the $0 closing offer at BoA, and simply ask your current lender to refinance you in your letter, at $0. Maybe they will bite for whatever reason.

You are awesome. Now, if my mortgage was not at 5.5%, I'd get right on writing that letter. But I bow down to you, nonetheless. Nice nice nice.

ArbolLoco said:No fancy feat here, I just sent them a letter, and they immediately sent her back a form letter with the new rate offer... a savings of about $950/mo. just because we asked.

But...did the letter from Indymac have postage on it?