Unexpected Credit Score Drop For Loan Modification

0
283

With the burst of the housing bubble, there are millions of people who are either in foreclosure, delinquent on their house payments or maybe just of the verge of having trouble.

Someone who is in foreclosure or who is delinquent can expect that their credit score will drop but there are folks who have struggled to keep up their payments who have applied for help through the Obama administration loan modification program who are also seeing huge drops on their credit score.

And the truth is that these people weren?t late on any payments, all they did was apply for help in order to avoid further problems and their credit score took a plunge.

Of course, it is not as bad as if they did go to foreclosure. But many feel that since they were trying to do the right thing in this difficult economy, the penalty shouldn?t be so stiff.

The credit bureaus, however, think that if the people were applying for assistance that is a sign that they are not financially stable and other lenders need to be aware of that.

Until things turn around in this economy, it seems that no one wins.

Do the wrong thing, suffer a penalty. Do the right thing, suffer a penalty. Can?t win for losing.

Read more at Credit Scores Can Drop.