Understanding the Complexities of Bad Credit Mortgage December 23rd, 2009

Samuel Goldberg

Grab a Bad Credit MortgageIts not always easy balancing out your finances especially with the financial times doing little to make that easier for you. Thus there comes a time in your financial planning where your income and expenses don’t balance out as they should. The trouble is usually when your expenses are outside the much that you make and you are left with debts accumulating. That is never good news and the effects of these are usually felt when you are out seeking a bad credit mortgage.

What mortgage lenders are out looking for in lenders are the benefits of doubt- they need to know that if they lend you a certain amount of money to buy a house, you will be able to repay them in a stipulated amount of time. If you can guarantee this, via your credit history, then you might qualify some great interest rates and awesome refinancing options should you want to make some mortgage adjustments somewhere down the road. But when you cannot give them a reason to trust you, apparent with a bad credit history a decision they usually make from seeing your credit score over the years, it becomes relatively harder for the lenders to trust you with repayments that they are not guaranteed you will make.

The good news is you have the options of applying for a bad credit mortgage. This kind of mortgage is tailored to meet the mortgaging needs of all prospective home buyers. Because the lending part for the lender is a risk, there are strict terms involved with some very unattractive interest rates. Of course it all depends on how well you search for a bad credit mortgage from the various lenders that will determine what kind of interest rates you give. Since the number of institutions offering bad credit mortgage are on the rise, you might be in luck to find a lender offering an interest rate that you might find easy settling for.

One way of improving the kind of interest rate that you get is via verifying all your assets. This will give some kind of surety to the lender that you will be in a position to repay the bad credit mortgage since you have your assets to back all your repayment attempts. Bad credit mortgage refinancing is one of the options sought by many homeowners that are in financial turmoil and unable to make mortgage payments when they are nearing the risk of getting their homes foreclosed.

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Bad Credit Mortgage: It’s Do or Die November 15th, 2009

Samuel Goldberg
Mortages For People With Bad Credit

Mortages For People With Bad Credit

It doesn’t matter what the government wants us to believe, but the financial crisis is nowhere near over.  In the past four weeks another five banks have fallen nationwide which brings the total for this year alone to 100.  That is correct, one hundred banks have gone under and there is no end in site.  In Georgia alone there were twenty this year.  That’s one-fifth of the total for the entire country!  The latest bank blamed their failure on poor mortgage loans.  If you think about all those people who lost their homes it is a shame that they probably didn’t know that there are lenders out there who do, indeed, underwrite mortgages for people with bad credit.

Unfortunately, not all mortgage companies will finance a bad credit mortgage because they take quite a risk doing so.  There are, however, lenders who will take the gamble but they also charge bad credit mortgage rates.  If you are in danger of losing your home then you don’t care if you pay higher interest.  Your main objective is to save your home, at all costs, and figure out later how to reduce your monthly payments.  It can be done and it has been done.  Realize that the equity is in your property.  If you feel you will be able to make those higher payments temporarily then, by all means, do what you have to do to protect your home.

Maybe you are not in default, but are the verge of defaulting on your mortgage.  You might qualify for a bad credit home loan as a second mortgage.  It could help you catch up your payments, pay a few ahead and even put a few bucks away for another rainy day.  Yes, you feel like you’re in the middle of a flood at the moment, but with a little planning and a lender who will underwrite a bad credit mortgage you can survive even this flood.

There are altogether too many people advising us not to take out mortgages with higher interest rates and finance charges.  Maybe they have never been close to being homeless, but if you need to get a loan and you need it NOW before you have a chance to fix your credit, then it’s a matter of survival.  The best advice, though, is to check out an online bad credit mortgage calculator to be absolutely certain you will be able to maintain until things pick up again.  Figure out how much money you absolutely need to carry you through, and then based on the valuation of your home, you just might be able to borrow enough to make that happen.

Look at it this way.  Have you ever heard the old saying “Where there’s life there’s hope?”  If you lose your home now, it’s over and done.  But if you can qualify for a bad credit mortgage, then there is still hope.  There is no guarantee that you won’t lose it down the road if things don’t dramatically change, but at least you’ll go down swinging.  Don’t let them take your home because things are supposed to be better now.  They aren’t better yet, but there is hope on the horizon.  Keep your chin up and fight for what is yours.

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It is Possible to Get a Bad Credit Mortgage September 28th, 2009

Samuel Goldberg

You Can Get A Bad Credit Mortgage

You Can Get A Bad Credit Mortgage

Even if your credit score is less than desirable, (that’s the politically correct way of saying is stinks) you can still qualify for a bad credit mortgage.  It all depends on exactly what you are trying to accomplish.  If you are a first time home buyer and are looking at mortgages for people with bad credit, there may be obstacles to overcome that a person with great credit wouldn’t have to face.  If you are looking at a bad credit mortgage refinance there will also be conditions attached that others might not have to contend with.  The economy is in a slump and the housing market is suffering as a result.  Consequently, if at all possible, lenders WANT to do business with you.  But understandably, before they take a risk they will do everything in their power to protect their investment.

Poor credit loans are risky during the best of times, but at the moment they are even riskier.  Banks are failing, the unemployment rate is sky high and record numbers of foreclosures are being filed throughout the country.  Now then, understand that lenders are in the business of making money through the interest and finance charges you pay when you take a loan from them.  If you want to buy a new home and you need a bad credit mortgage my number one piece of advice would be to have a sizeable down payment.  A typical down payment for a piece of property is generally 20%.  That is for someone with an acceptable credit rating.  If you are able to come up with 30% or more your chances of obtaining the loan are considerably higher.  The lender will look at it like this.  If they need to foreclose on the house they will at least get their investment back because they are only lending 70% of the value of the property.

Similarly, if you are trying for a bad credit mortgage refinance, understand the same principles apply here.  The lender will look at how much equity you have in the property.  In very, very simple terms it’s like this.  If you own a home that is valued at $200,000 and only owe a first mortgage of $100,000 you have approximately $100,000 of equity built in the property.  So hypothetically you want to refinance an amount to net you $50,000 to use as a bad credit debt consolidation loan.  The lender may very well be inclined to make that loan because you have enough equity to secure (guarantee) his investment.  That is an ultra simplistic explanation, but you get the point.  Now you owe $150,000 on a home that is valued at $200,000.  Even should you default the lender feels safe that he will get his money back.

Should you be concerned with paying high interest rates, look at the flip side of the coin.  If it is a poor credit loan for a new home you will now have the opportunity to reestablish good credit by making timely payments on your property.  If it is a bad credit mortgage refinance to be used for home improvements then not only will the property increase in value but you will be building your credit as well.  Once you have reestablished yourself you can always apply for a new loan with lower interest rates.  It just might be in your best interest to take advantage of this loan.  Use it to build a better future.

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