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Old 11-15-2010, 01:43 PM
 
36,618 posts, read 18,835,367 times
Reputation: 21248

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Did we all read the same article?

As far as I can tell, there's no "lowering of the bar" whatsoever. The scores will be recalculated to take more factors into account, because behavior patterns have changed. Used to be that people would do anything rather than default on a mortgage, so mortgage debt wasn't weighted a lot when calculating the score. Now, when words like "strategic default" is gaining currency, banks are getting jittery about secured debt.

Which of course sucks for those of us with a relatively big mortgage that has been carefully serviced.

Now, why we meekly accept being our lives ruled to a large extent by a single number based on a secret formula and computed with input that may or may not be correct - that I will never understand.

(Not sour grapes, incidentally. 800+)
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Old 11-15-2010, 04:20 PM
 
Location: OCEAN BREEZES AND VIEWS SAN CLEMENTE
19,895 posts, read 16,662,965 times
Reputation: 6456
And for some, they will fall right back in the same place where they were before, some just don't see things coming do they! Some will most likely fall prey, and be worst off then before. The Credit Companeis are not dumb, it is in their best interest, to get more suckers and they will.

Unemployment, the record number of foreclosures, short sales, and repos have not helped.
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Old 11-15-2010, 05:55 PM
 
Location: Great State of Texas
86,068 posts, read 76,115,551 times
Reputation: 27635
Quote:
Originally Posted by Dane_in_LA View Post
Did we all read the same article?

As far as I can tell, there's no "lowering of the bar" whatsoever. The scores will be recalculated to take more factors into account, because behavior patterns have changed. Used to be that people would do anything rather than default on a mortgage, so mortgage debt wasn't weighted a lot when calculating the score. Now, when words like "strategic default" is gaining currency, banks are getting jittery about secured debt.

Which of course sucks for those of us with a relatively big mortgage that has been carefully serviced.

Now, why we meekly accept being our lives ruled to a large extent by a single number based on a secret formula and computed with input that may or may not be correct - that I will never understand.

(Not sour grapes, incidentally. 800+)
This part of the article would be the lowering of the bar..a clean slate sooner than later. No need to pay higher rates because you had financial problems..like a "get out of jail" card. Their future potential to pay would outweigh their past which involved unpaid debt, foreclosure or bankruptcy.

From the article:
"The FICO 8 Mortgage Score could come in higher than the standard FICO — indicating lower risk for the future — in situations where formerly troubled borrowers manage to put themselves back on a healthier credit track"
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Old 11-15-2010, 09:52 PM
 
Location: Canada
2,158 posts, read 1,792,767 times
Reputation: 876
Quote:
Originally Posted by blackandproud View Post
Because its much easier for some to stand on their high horse and look down on others as deadbeats without reading and comprehending. Its much easier for them to judge without knowing, makes them look smart I guesss.

I think this is a great idea. You could have someone working for the same company for 20 years and very little debt only to find themselves layed off for a period. Things happen and EVERYONE will encounter hard times.
You just can't get through to some people, like the poster of the message above.
It has nothing to do with a high-horse mentality, although I've noticed in life that it's usually irresponsible losers that are the first to complain about others being on "high horses".
If someone worked for a company for twenty years and got laid off, they should have a good amount of savings built up, not to mention the severance package they would likely receive in most cases.
Unfortunately, most people act like nothing bad may ever happen in their lives and they spend every last nickel of their pay as if money is going out of style. They don't think ahead, and no one should have to bail them out of their irresponsibility. We're not children anymore, but a growing number of adults seem to act like it.
Yes, there are legitimate cases of people being down and out due to no fault of their own (eg. disabilities, laid off from short-term employment, etc). People like that I don't mind helping, but we're not talking about people like that.
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Old 11-15-2010, 10:03 PM
 
16,434 posts, read 19,981,876 times
Reputation: 9560
Quote:
Originally Posted by wdavid002 View Post
Just evening the playing field...social justice...
If we're leveling the playing field, let's factor in pro athlete's salaries to determine a fair wage for all of us...
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Old 11-15-2010, 10:14 PM
 
Location: Alaska
6,445 posts, read 4,641,100 times
Reputation: 3873
Quote:
Originally Posted by JazzyTallGuy View Post
If you don't have a job and you don't have an income what are you going to do? There are people out there you under normal circumstances i.e. they are employed are perfectly willing to pay their debts. Once the income goes so does the ability to pay debts. Not everybody that has bad credit is a deadbeat per se. Some people are obviously in circumstances that just don't allow them to pay their debts. Credit scoring companies are finally realizing it's foolhardy and bad business to just shut the door on people who would normally pay their debts if they had the means to do so.
The point is this, we all fall on hard times. I was taught that when things get bad you need to do what you have to in order to make ends meet, work hard and do the right thing. If that is walking away from a home in order for my family to be able to eat so be it.. The difference is, I was also taught that I need to be responsible for my decisions. If I walk away from a loan I still owe that money and when I have the money I should repay it regardless. The idea that someone can walk away from a loan because they couldn't afford it, then at some point in the future secure another job, and not pay the balance of the original loan is nothing but a pi$$ poor excuse period.. There was a period in my life were I owed a pile of people and banks.. It's not that way today because I went back to those lenders when things turned around.. I paid them all back in full.. It's called responsibility..
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Old 11-15-2010, 10:17 PM
 
5,765 posts, read 10,672,644 times
Reputation: 3833
Well, Fair Isaac and VantageScore are both private companies. If their scores turn out to to be useless to credit score consumers, their business will suffer, and competitors will take their place. Or at least, that's the theory...
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