Mortgage fix may hurt credit score

Updated

Homeowners who cannot pay the mortgage may be desperate to get rid of their obligation. There are many options available -- refinance, loan modification, short sale, deed-in-lieu of foreclosure, foreclosure or bankruptcy. Lenders report these transactions to credit bureaus. In many cases, a mortgage solution significantly damages the borrower's credit score, also known as the FICO score. "The single worst thing any person can do to her FICO score is to have a serious delinquency

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