So you can not pay your mortgage and you sign up for the government mortgage relief plan. You get accepted and then come to find out that your credit scores take a huge hit.
And you are surprised.
Welcome to America.
For borrowers who are making their payments on time but are on the verge of default, the Obama administration’s loan modification program can reduce their credit score as much as 100 points. That makes it harder to get a loan and can present a problem when applying for a new job.
Housing counselors say it’s unfair, especially because the news often comes as a surprise to homeowners. via The Baltimore Sun
Seriously folks, how can we have gotten to this point.
You tell the bank that you can not pay back the debt you owe them, have the power of the government force them to accept a cramdown, and then you complain because your credit score gets dinged?
And you want to hear the real kicker. If you apply for the program and don’t get in, your credit gets dinged even worse.
I bet you do not hear this when you talk to a credit counselor or listen to the marketing coming out of Washington.
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Plus, you’re still upside down and your home value continues to plummet. Some bailout!
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