Getting mortgages for poor credit

Getting mortgages for poor credit is difficult not impossible. If you are wondering you have a low credit score, you are not alone. If you feel there is something amiss with you it may not be. Since the start of this Great Recession, people from all walks of life have been slaughtered financially and the credit reports have the highest number of delinquencies I have seen in my 20 years of practicing loan work. Credit is a function of finances and when financial conditions decline so do the credit profiles.

We have several years of real estate growth and when the market cratered in late 2005 it took down the housing values, and than came the greedy bankers and investment professionals and they sold these non performing mortgages to unsuspecting investors. They in turn shielded themselves with insurance protections from insurer’s like AIG and many others and even bet against the decline and fall of the real estate market, and even against their own bad mortgages, that they sold. This created a huge problem with the insurers who could not remain solvent and they started going down the drain and than the real estate fueled  financial crisis hit the country in the face like a two by four. Factories slowed down and workers were laid off, jobs were slashed and the productivity declined. Its became insane during the year 2008 and thereafter.

What was at the  heart of this financial crisis? Mortgages for poor credit. These were loans and tranches sold to investors without blinking an eye on borrowers who could not have qualified and got a mortgage in the real world alone.  The appetite for mortgages with poor credit was so high that everything was taken in with minimum scrutiny and oversight. The leadership in Washington DC had no clue what was transpiring in this world of finances and mortgage meltdown.  They were too busy with Iraq and Afghanistan wars and billions of dollars fueling through military industrial complex.

The subsequent decline was massive  in real estate values and job markets. Just about 8 million households lost their livelihood and 3 million homes got  foreclosed. If this was not a calamity what else could be ? The Titans of Wall Street meanwhile kept enjoying multimillion dollar bonuses year after year while the nation twisted and turned in a horrific recession. This greed continued into higher spirals unchecked till a new administration came to Washington in January 2009.

So as a home owner and a member of society during these calamitous times how do you prepare yourself and arm with the tools to chart your financial future? Here are some basic points which are easy to follow, and may apply to a broad spectrum of  mortgage applicants:

1. First evaluate your current financial situation. If you have a job than its good news , you can apply now,  if not you have to wait.

2. Check your credit report right here. Take a hard look, and what is posted in it.

3. Dispute and remove all those items that are duplicate and irrelevant and not even yours.

4. Prepare a simple plan to apply for mortgages for poor credit by visiting online resources or this site.

5. Get all your financial papers in order and execute the plan and contact mortgage professionals.

There is lot more information available on this site that can help various special programs and credit issues. Coming out of a recession is challenge and it wasn’t your fault as I see it.