Better Read What I Just Posted on My Planet Finance Site
It’s Official: Mortgage Help Will Kill Your Credit
March 22, 2010 by inkstainedhack
What have our billions in support of the financial industry wrought? What will happen if you seek a mortgage modification, the option President Obama has ordered mortgage companies to make available to ease the impact of the Recession on not only homeowners but everyone who depends on the dollars of homeowners to survive in their businesses? Financial ruin. Oh, and a black mark against your resume, folks.
With unemployment averaging 10.9% across the country, with pockets as high as 20%, seeking temporary mortgage relief now hands employers an automatic reason for eliminating us from the race for a job.
According to the Associated Press (3/21/10), this is supposed to be a surprise result of the mortgage aid program. Right. It’s only a surprise to the harried homeowners who have made the mistake of trusting the banks they have been busy bailing out. What the article doesn’t say is that mortgage holders don’t have to be in arrears when they seek help. Just the act of accepting temporary relief from the Mortgage Gods will trigger a negative credit report, issued of course by your mortgage company!
In the AP report, which quotes Community Development Corp. of Long Island, a counseling group, and GreenPath Inc., a nonprofit group in Farmington Hills, Mich., the writer — without attribution — notes that the impact of the credit reports are “less severe” than foreclosure, which can damage credit for years. Note to AP, these banks include the period they estimate the negative situation will be in effect: try SIX YEARS!! That’s a long time on the unemployment line.
Had enough? Call and write your local congressional representatives and yell bloody murder!! If you can also call Elizabeth Warren at the President's Economic Oversight Panel, in Washington, and Sheila Bair at the FDIC.