Obama mortgage loan modification lowers credit scores
Many home owners who signed up for Obama mortgage plan - Making Home Affordable, apparently did not realize that participating in it, just like in any type of mortgage loan modification program, would lower their credit scores. Often by as much as 100 points.
While the plan was designed for homeowners who are not yet in default on their home loans but struggle, enrolling into it clearly shows that they may be on the verge of becoming delinquent. Once the mortgage companies notify Experian, Equifax and TransUnion, the credit scores get lower in a hurry. It happens almost right away, during program trial period where homeowners must make at least three timely payments.
But wait, it gets worse for borrowers who try to get in this loan modification plan and then get denied. Their credit scores suffer the most.
Sat Mar 20, 2010 06:03PM by Tony | More in Mortgage | Comments (0)
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