The Problem Of Bad Credit Mortgages Essay

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Are bad credit mortgages still available to those borrowers who want to purchase their first home or refinance that high rate adjustable rate? Mortgage professionals get asked this question all of the time and the answer may surprise you. The reason that the answer may surprise you is that we seem to be inundated daily with financial experts telling us that the current economic recession was brought on primarily because of bad credit mortgages. Reading and listening to all of this would lead you to a quick conclusion that anyone with a low to moderate credit score should resign themselves to being locked out of the housing market or the refinance market for a very long time. Not so.

Anyone who is knowledgeable about the market and its collapse will know that it had nothing to do with bad credit mortgages. There always has been, and always be, a segment of the population who at some point or another in their life encountered a bump in the road such as a job loss or a catastrophic illness, or a business failure. As a result, they have seen their credit scores, which now are effectively our credit identity, suffer and drop to levels which would be characterized as "bad credit". The fact is, though, that historically, these individuals take their obligations seriously and are reliable bill payers once they have overcome their temporary setback.

The "toxic" mortgages which you hear about on the news every day are not bad credit mortgages, but much closer to fraudulent
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