Pamela Yip of The Dallas Morning News warns borrowers not to worsen their credit scores deliberately in hopes of qualifying for a rate freeze under the Hope Now initiative (aka the Teaser Freezer) brokered by the Bush Administration. In an article published the day before Christmas, Yip says “torpedoing your credit score has long-term damaging consequences.” Most obviously, it could hurt you the next time you apply for a mortgage, auto loan, or some other type of credit.
FYI, here’s a link to the Hope Now website.
And here’s a cynical post I wrote about the freeze idea when it first came out.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.