Some kind of help this is. This story brings to mind an old quote from Ronald Reagan: "The nine most terrifying words in the English language are: 'I'm from the government and I'm here to help.'"
wait a minute wait a minute, the private market ruins people's credit with complex ecalating mortgage payments, the right scream's "personal responsibilty" the gov't tries to help these people and it hurts their credit, the right screams, "evil government"?
In what world do these ignorant folks reside? What would these men and women assume that modifying the terms of a secured debt obligation would not affect their creditworthiness?
I guess they'd be cool with it if the government were outright trying to screw them over to begin with...?
Why is this a bad thing? If your credit score is supposed to represent your financial responsibility, then if you need assistance to fix your bad mortgage, shouldn't your credit score reflect that?
It sounds like the problem for this guy is that the bank lied to him. But I guess you're right, most people would be far better off ruining their credit scores by failing to pay their mortgage AND losing their homes than having the government help them keep the home while still taking a hit to the credit rating.
As described in the first sentence of the article above, this was all part of President Obama's foreclosure rescue plan. Obama was quick to claim the credit for getting this measure passed. He has continued to associate himself with it frequently and repeatedly while out on the stump since it was passed. If he is claiming the credit, shouldn't he also take responsibility for the blame? Or is that too much to ask of his majesty Barack Obama?
That's right. The real benefit of this program was the concessions being made by the bank with regards to the modification of the terms and the reduced costs, payment for which was to be partially subsidized by the government under this plan. This plan was designed for people who were having financial difficulties and could not make their payments as they were. Modification of those terms with concessions for an inability to pay is a noteworthy event for determining your credit score. If these kinds of events are not noted, then the whole concept of a credit score ceases to have any reliable meaning.
Blame for what, helping people save their homes? I would suspect the individual in the article is more exception to norm.
From the second sentence of the article above: "CNNMoney recently received a flood of e-mails from readers complaining about the impact of trial modifications on their credit reports."
Where is the problem then? It seems the consumer who got himself in this boat has two choices: 1. A mortgage modification, a house, and a lower credit score 2. A foreclosure, no house, and an even lower credit score #1 clearly is a better option, and that's what the government offers. They aren't giving people freebies - there's a price for the assistance. I don't see anything bad here at all.
I am not complaining. I am just making some observations about government "help". Including the "help" provided by Barack Obama and the Democrats in Congress recently.
I would like to know what the "flood of email complaints" is vs the total of people who are happy they kept their homes before I make any judgements on the program. this is like taking a single winter storm and claiming its evidence against global warming
Dude, you're wrong on this. Obama's foreclosure rescue plan is ridiculous, but not because it hurts people's credit scores. Mortgage recovery plans hurt people's credit before Obama stepped in. Obama's plan just put more restrictions on the ways people could modify a loan to help a borrower. Credit reporting hasn't changed though.
If you are having trouble with your mortgage payments, so much so that you are needing this kind of assistance, wouldnt your credit SCORE be the least of your worries?? I mean, hmm, foreclose on house, lose house, credit score takes big hit. OR, use assistance program, no foreclosure, keep house, credit score takes big hit. Geez, I know which one I would choose. And it wouldnt even take long to reach said decision.
