Bad credit may be the next problem for Katrina's survivors

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October 08, 2005

Bad credit may be the next problem for Katrina's survivors

The homeowners who lost their homes and/or jobs, because of recent hurricanes and now can't keep up with the mortgage payments, can find their credit scores completely ruined.

Bad credit is the last problem these people need, but unless the three credit reporting agencies can find a solution for this very real situation, that is what going to happen. So far Equifax, Experian and TransUnion have declined to participate in the proposed plan that would take "a pre-Katrina credit score snapshot of all residents in the affected areas. Later, when victims apply for loans, the pre-Katrina score could be used to identify whether victims were good credit risks before the storm."

Other proposals are on the table but still there is no any practical solution in sight.

This is very sad situation, needless to say. You lost you house and you will try to rebuild it, but how you can get a decent interest rate with bad credit? These people will need every dollar when they start rebuilding their lives. At least lenders have been understanding somewhat, granting up to 90 days grace periods to those consumers who live in storm zones. But what is going to happen afterwards if people can't find a decent job comparable with the one they held before.

What is going to happen if their houses are still standing. Will they be foreclosed?

Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Bad credit may be the next problem for Katrina's survivors

October 08, 2005

Bad credit may be the next problem for Katrina's survivors

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