Mortgage modification hammers credit

  • Article by: LORA PABST , Star Tribune
  • Updated: August 17, 2010 - 10:38 AM

A bank signed up a couple for a mortgage assistance program, even though they didn't apply for help. They're trying to undo the deal.

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DufferHAug. 14, 10 8:28 PM

These folks by their inquiry told the bank they were worried about their mortgaqe commitment. They could have told the bank representative not to send the modification info. You can't blame the bank for being concerned about these folks and their finances.

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bates2Aug. 14, 10 8:49 PM

I wonder how the bailout damaged their credit. Not much, because the government lends them money at no interest. Our government should be about justice not capitalism.

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ryanjcoleAug. 14, 10 8:50 PM

just because they were worried doesn't give the bank the right to act on their behalf, without provocation such as skipping a payment or cutting their payment amounts. Am I in trouble with my car loan because I have paid it many months in advance? I'm 5 months ahead right now.

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jerryabAug. 14, 10 8:52 PM

They called to get info--which is what a smart consumer does when considering options. More importantly, how many PHONY mortgages has BA issued as a result of their screwed-up system (if this is typical BA)? The bank is totally responsible--and there may well be financial compensation owed to the Jaspers for BA screwing up their credit.

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notmetooAug. 14, 10 8:59 PM

What a racket. It's about time this mess gets cleaned up.

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Packman_1Aug. 14, 10 9:05 PM

They should be fined and have their own credit rating lowered.

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swmnguyAug. 14, 10 9:15 PM

I know a few people in a similar situation. One couple saw trouble coming down the road and asked Wells Fargo for information about possible workarounds, should it become necessary. It never became necessary. They've never missed, nor even been late on a payment.

Wells is pressing them so hard now they're going to sell, as quickly as they can. Just by asking, they got "on the radar", and they have a lot of equity-well over $150,00 on a $300,000 home. Plus they're self-employed, so Wells can claim to doubt their steadiness of income.

Wells has terminated their line of credit, called in the balance on that (which they only recently tapped for some needed updates); when they couldn't pay it immediately held them in default and is pushing them into foreclosure, without a single late payment.

It's a shakedown to strip them of their (over 50%) equity, and then re-sell their house for yet more gain. Despicable.

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chunstigerAug. 14, 10 9:16 PM

Just walk away. Make the banks swallow it whole. It will help expedite the economic collapse that's inevitable.

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bill9844Aug. 14, 10 9:36 PM

Next time, just walk, it probably won't do much worse damage to your credit score.

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norway2010Aug. 14, 10 9:37 PM

It's high time to end the secrecy behind the calculations and the red-tape! (Even though this will never happen)

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