The housing market is not stagnant: it changes and evolves constantly.
A As the housing market continues to stall, and more bad news, mortgages increasingly default start, we began to
see changes in the infrastructure of how things work.
Subprime loans or bad credit history
remortgages, these mortgages attention people with not so stellar credit became very popular lately, and also
one of the main reasons for the high rate of foreclosure we are serving throughout the nation.
This is also the result of lenders becoming increasingly lazed in their standards and offer loans to people who
can not afford to pay.
Now that many industry officials are realizing that we'll probably see more and more difficult for people with
bad credit obtain a loan than ever.
Thus, people with bad credit who have defaulted or become delinquent may have made things potentially much
harder for future borrowers with bad credit.
On February 4, 2007 Article by Dave Collins, Associated Press, and posted on CBSNews.com, "Changing housing
market snubs bad credit, explains how those with bad credit may find it difficult to take a mortgage in the near
future due to changes in the industry.
"Homeowners with a history of credit problems are that it is more difficult to obtain mortgages or refinance homes
due to the weakening housing market makes lenders less likely to treat the riskier loans.
"Many lenders subprime mortgages _ used primarily in loans and equity for people with irregular credit _ have
shown signs of problems after the explosion of the housing bubble and more homeowners have begun to default rates
higher mortgage. "
Tougher standards and are more visible nationwide.
Well that credit scoring has always been an important part of getting a loan now that the industry as a whole is
hardening, the score will come out of the shadows once more and borrowers will realize that they must have a
favorable course for a loan.
The scores credit generally range from about 400-850, and the higher the score the better interest rate you
receive on your loan payments, will diminish.
"Most lenders consider scores above 700 to be a sign of good financial health and performance under 600 to be risky
and a reason to increase the interest rate on a loan, according to Fair Isaac Corporation Who invented the FICO
Although it is unclear how recession in the market for subprime mortgages affect housing markets and the nation
as a whole, most believe that undoubtedly adversely affect all aspects of the economy.
"The market for subprime mortgages is suffering through its first recession in the housing market since the
industry exploded a decade ago, said Karl E. Case, an economics professor at Wellesley College in Massachusetts.
The collapse of the housing and credit requirements more stringent may cause a hole in the country's economy,
consumers have less money to spend because of higher interest rates and fewer options refinancing, Case said. "
Bad Credit Mortgage Loans
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