Program could extend credit crisis
Americans who choose to take advantage of the government’s Home Affordable Modification Program as it stands today are entering into a buyer-beware system that may deliver short-term relief but also long-term pain. Although the program, known as HAMP, works to reduce monthly mortgage payments by half or one-third of monthly income, the program can also ruin participants’ credit for years to come, severely limiting their ability to borrow money and threatening for that reason to extend the housing crisis at the heart of the recession.Fed’s mortgage modification program: Keep your house, lose your credit « Colorado Independent
Nagle Law Group, P.C.4530 E. Shea Blvd., Ste 140 Phoenix, AZ 85028
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http://www.naglelawgroup.com/realestate.asp
It is true that if a borrower goes for a Home Affordable Modification Program, it might have a negative affect on his or her credit score to some extent but there are certain benefits to it as well. This will help the borrowers to save their property from the imminent risk of foreclosure. If the borrowers make the payments as per the repayment plan given under Home Affordable Modification Program, it will help them in improving their credit scores.
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