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Mortgage Loans for People with Bad Credit or Poor Credit

By Edited Oct 12, 2015 0 0

Mortgage loans for people with bad credit are popular when the economy is on the down turn. The reason being banks need loans to stay in business and during a recession or depression, loans are few and far between. When this happens banks look for other sectors where they can make loans. People with bad credit are usually off limits during a healthy economy but during a recession, banks target these risky customers in order to broaden the mortgage portfolio. It's all about making money and banks sure want their share no matter how risky. You may qualify for mortgage loans for people with bad credit.

A recession can be the ideal time for people with bad credit to apply for a home mortgage. Banks and mortgage lenders are looking for new sales and will over look risk in order to make their quotas. If you have a steady job and a credit card, chances are that you may be qualify for mortgage loans for people with bad credit. How do you know if you have bad credit? Well that's easy. If your credit score is 650 or lower, than you have bad credit. Take advantage of this situation because it does not happen often and may not occur for another 20 years or so. If you are wanting to own a home, then a recession can work for you as long as you still have a job.

Mortgage loans for people with bad credit are a part of every lending institution's loan portfolio believe it or not. Every single bank has bad credit loans and lots of them. I know, I used to work for major bank and saw many poor credit loans. I could not believe how many poor credit loans that were being approved. Some of the borrowers didn't repay previous loans either. These borrowers or customers were really risky. But they got approved. Politics!

Mortgage loans for people with bad credit serve a purpose in society. They help to reduce the real estate inventory, increase state tax revenues, expand bank portfolios and also improve credit scores for those that repay the mortgage loan. This can help you reestablish your credit or improve your credit score tremendously.

If your bad credit was caused by unpaid medical bills then there is a good chance that you will be a good applicant for mortgage loans for people with bad credit. Medical expenses are one of the few acceptable bad credit situations. Usually lenders will over look these types of negative entries on your credit report. There is a really good chance that you will get approved for a mortgage loan for people with bad credit. You never know until you try and it never hurts to apply.

There is a lot of controversy about mortgage loans for people with bad credit. Most people think it is wrong to lend to people who have bad credit. The reason they have bad credit is because they didn't act responsibly by paying the loan on time or at all so why should they ever get another loan? I can certainly understand this point of view but mortgage loans for people with bad credit serve a greater purpose to the community. It supports the local government and community in more ways than one. Think about it. It makes an empty house occupied, provides tax revenue for the state and/or city, provides revenue for our financial system, repairs bad credit scores and supports the local economy. It actually is a good deal for all.

There are lots of opportunities for everyone when looking at mortgage loans for people with bad credit. There are plenty of bad credit lenders looking to make loans right now. Take advantage of the recession.

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