Bad Credit - Mortgage

Bad Credit Home Loan
Bad Credit Mortgage
Bad Credit Equity Loan
Bad Credit Mortgage Loans

One way for people with bad credit to avoid foreclosure and stay in their home is with a mortgage loan or refinancing.

A mortgage loan or refinancing is simply another mortgage that pays off your existing mortgage. An advantage to these loans is that they may reduce mortgage interest and get a person even a person with bad credit a better interest rate. Lenders can do this using money the federal government has set aside to help people stay in their homes. There are federal programs that make up to $75 billion available for this and some of it can be accessed by those with bad credit.

Another advantage to such programs is that the lawyers for some of these lenders will work with the holder of an existing mortgage to get the amount reduced. Banks and other lenders might be willing to do t his because they loose money from foreclosure. Taking a write off and collecting smaller payments is still a better deal for them than taking possession of an empty house.

Search for bad credit mortgage loans online

The way to see if you qualify for such lending is to go online. Simply typing bad credit mortgage loan into your search engine should produce a list of lenders willing to give you such financing. The lenders should have applications that you can fill out online to start the process.

More work

It may take awhile but a person who has bad credit but has a verifiable steady source of income should be able to get some sort of mortgage loan or refinancing. This should pay off the old mortgage and get better terms on the new mortgage.

One thing people should keep in mind is that such mortgage financing will be harder to get if there are equity loans or second mortgages on a house. If there is one mortgage on a home refinancing is fairly simple. Additional equity loans may involve other lenders who have other terms and concerns. It may take awhile to get the equity loans paid off or develop a payment plan for them.

Equity lenders maybe willing to work with homeowners because foreclosure and collection are expensive processes. Lenders would rather receive smaller payments or deferred payments than foreclose on a house.

A bad credit history can still prevent or delay the mortgage process. A really bad credit history with years of writes and defaults could cause a mortgage lender hesitate. As could income that is hard to verify. A borrower without a source of steady income will have a much harder time refinancing than someone receiving a regular paycheck.

One way to get refinancing might be to agree to pay off part of the loan upfront. Another possibility to keep in mind is credit counseling, some lenders are willing to cut people undergo credit counseling and enter a debt repayment plan slack.

Refinancing is still available for those with bad credit who want to keep their homes. Finding and getting it maybe more of struggle than in years past.