What Bad Things Happen By Signing up for Gov’t Mortgage Help Program

19Mar10

WOW!!! What a shocker. Can’t home owners that need some help in getting back on their feet again get a break? Apparently not. Not all home owners in trouble are totally innocent victims of their plight. Common sense, such as asking the basic question of if one can really afford their house payment to start with, would have eliminated a fair amount of problems right in the beginning.

The temptation of home ownership and fear of being locked out of the market as home prices climbed rapidly was a factor for sure. Add to that the availability of those risky ridiculous loans, good salesmanship by lenders, real estate agents and the news media. It made for a pretty convincing argument to buy a home then. A fair majority of home owners in trouble did not forsee the problems. Some were out to take advantage of the system.

It goes back to the emphasis of our basic education. We are trained to work a job for money but receive little or no education on how to handle our money once we earn it. This Federal Government program to help home owners has the very negative side effect of lowering a home owners participant’s credit scores.

Home owner participants can expect other living expenses (i.e. credit card interest, auto & home owner insurance, cell phone bills, utility deposits, auto loans) to rise. Lower credit scores may also affect current employment and decrease chances of getting another job. Talk about hitting someone when they are down.

For more details, read the complete story on this link and give me your feedback. http://finance.yahoo.com/news/Credit-scores-can-drop-after-apf-1601705094.html?x=0

Have an awesome day,

Richard