If its ok to Bailout the banks, wouldn’t be ok to remove the foreclosures marks from consumers credit reports?

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decarlo75 asked:


Many americans not only lost their homes but also got their credit ratings were damaged. Many paid all their credit cards on time but were unable to pay for their mortgages. Wouldn’t be fair that the Gov allow delinquent marks to be removed from our credit reports so we can purchase homes again? The Banks are getting a break. why not us?

Tags: Bailout, Credit Cards, Credit Ratings, Foreclosures

March 10th, 2008 |

Tags: Bailout, Credit Cards, Credit Ratings, Foreclosures

3 Responses to “If its ok to Bailout the banks, wouldn’t be ok to remove the foreclosures marks from consumers credit reports?”

1. Jared
   March 12th, 2008 at 8:47 am
   

   no worries, it will come around

   
   
2. bdancer222
   March 15th, 2008 at 5:22 am
   

   First, foreclosures come from not paying your mortgage. It would be especially ridiculous if people paid unsecured credit card debt but defaulted on their home mortgage. That would demonstrate some pretty bad financial management skills.

   Second, the bailout is buying up those foreclosed properties which will ease the credit flow. The Fed will eventually sell those properties, recovering at least some of the outlay, maybe even making a profit. As I understand the bailout, the Fed will buy these properties at the current market value, not the mortgage balance.

   But what about all the people who didn’t default on their mortgages? Folks who didn’t buy more house than they could afford. Paid the mortgage instead of buying cars or running up credit card balances on other stuff. How about giving US a break?

   
   
3. Mr. M
   March 18th, 2008 at 3:13 am
   

   That’s an interesting thought. It’s not a government decision, credit scores are generated by private companies, and those companies neither gain nor lose by the bailout.