Mortgages for people with bad credit

The last few years has seen the worst recession since the Great Depression. House prices in the United States have collapsed to a fraction of their real estate value in the peak years before the bubble burst in 2007.

Many Americans find themselves in negative equity and cannot afford to move or sell their house and are in a vicious circle of trying to stave off bankruptcy.

Do mortgages for people with bad credit exist?

Due to late payments they often find themselves with bad credit and unable to get a further mortgage or remortgage. Those who are looking for a mortgage have also been tainted by the Economic collapse.

Many are no longer able to get mortgages from prime borrowers without a hefty deposit to act as a buffer should things go bad.

Without a large deposit it is almost impossible to get mortgages with pre collapse multiples such as 95 or 100% mortgages.

Mortgages for people with bad credit are almost impossible to come by in the current economic climate existing in the United States.

The Subprime Mortgage Crisis of the United States: It is widely felt that the subprime mortgage crisis has greatly contributed to the economic problems in the United States. Concerning a lack of regulation by the Fed that many think led to this crisis in the first place.  Below is an interesting video giving an insight into why it is unlikely you will find a mortgage if you have bad credit in the United States….