Mortgage rescue: Credit score killer

[OnePimpTiger]

Mortgage rescue: Credit score killer

Most troubled homeowners view President Obama's foreclosure rescue plan as a way out of their financial troubles.

But many don't realize that entering a trial mortgage modification can actually hurt their credit.

CNNMoney recently received a flood of e-mails from readers complaining about the impact of trial modifications on their credit reports.

To be sure, many people who apply for the president's plan are already delinquent in their mortgage payments, which wrecks their credit backgrounds. And obtaining a trial modification should affect borrowers' scores because it shows they cannot meet their original obligation, experts said.

Thank you Captain Obvious! Let's see....you can't make your mortgage payments, so you get the government to bail you out, yet you expect your credit score to be unaffected? Sadly, that seems about par for today's world, expecting no repurcussions whatsoever for poor decisions.

[dherm360]

I agree OPT, people these day EXPECT too much without repercussions.
Lets leave their credit intact, and let them purchase other items on credit that they cant manage and hopefully someone down the road will continue to bail them out over and over again.

[shortking98]

Wait, defaulting on your mortgage kills your credit score?!? This is mindblowing news