Thread: Do I take a FICO hit for better terms? Threaten foreclosure?

[FONT=Times New Roman][SIZE=3]I have great FICOs, and have a piece of land that has a construction loan on it under my personal name. I plan on holding onto it and build sometime in the distant (5-15 years) future due to current conditions. I have written a letter to the lenders stating that I will be forced to foreclose on the project (which is untrue; just an attempt to get more favorable terms). In the letter, I asked for a 12k forgiveness of the closing costs of the construction loan due to the fact that I never even took one draw. Additionally I asked for reasonable terms for a land loan on a 30-year fixed. They denied both requests and extended my 12-month loan term into its extension period (it was originally 12 months with a 6 month extension allotted) after I informed them of my intention to foreclose. So, is there any way to quantify how one, two or three late payments would effect my FICO

A late payment can affect your score anywhere from 50-100 points depending on how the rest of your credit is....

Negative items impact 35% of what makes your credit score...

Now as for a foreclosure, I've seen usually around 100 pts or more.

When you have somebody (broker) pull your credit and if you pulled your credit from the bureaus directly, the scores will be completely different, because a mortgage lender is going to look closely at pmt history on mtg's where a consumer report will look at everything... same goes for when you pull credit at an auto dealer, they will have a completely different score, cause they formulate scores based on certain criterea.

Hope this helps you understand a little better.

ouch... sorta of a dilema... is 12k really worth the fico hit?