Government Help = Lower Credit Scores

You do realize it's banks that are causing this, NOT the government? Did you read the article? It's taken as a "sign" of difficulty.

"The credit rating industry defends the practice. People who sign up for loan modifications would not be asking for help unless they were having severe money troubles, said Norm Magnuson, spokesman for the Consumer Data Industry Association, a trade group in Washington that represents the credit bureaus.

'The consumer is going into the program because they're in a financial bind," he said. "Other lenders would need to be aware of that.'"

If you want to get mad, get mad at the banks. PERSONALLY, if I was in that situation I'd be glad that I still had my home and that it didn't foreclose, as that would destroy your credit and leave you with no place to live. A hit on my credit score in turn for keeping my home doesn't seem like that bad of a deal.

I don't know why anyone would think they can get a modification and it not affect your credit score. EVERYTHING you do on a financial level affects your score. Same as going to debt relief for credit cards. of course if affects your credit score.