• First you must realize that these loan modifications are not necessarily permanent.
• Second, they can and probably will damage your credit, thereby making it harder to get a new loan in the future.

Once borrowers receive a permanent modification, their payment status is listed as current. However, the delinquency remains on their credit reports for up to seven years.

"This is the biggest nightmare," he said. "My credit is completely useless."

• What happens if I can't make the new payments?
• How important is your credit rating? In my opinion, you should not care about your credit rating...because you shouldn't be using it in the first place. If you don't go in debt to the unrighteous bankers and lenders, then who cares what your credit rating is or that you even have one?
  
• What happens if values continue to go down and I end up on the hook for even more money to come to the table when I finally sell my home?
• Will this loan modification really help me to be better off financially years down the road?