Too many people have received bad mortgages over the last decade and housing markets have nearly collapsed in many areas because of foreclosures. However, we are getting over these problems now, so it's time to start giving out bad credit mortgages again in order to pump more money into the markets.
How are people getting these mortgages right now? It has everything to do with private mortgage lenders competing with each other for borrowers. The banks need more money to be invested in their loans, so they are willing to make some concessions these days that they weren't exactly keen on making during the last couple of years. It's an interesting phenomenon and it's something that most certainly bodes well for people who want to enjoy their own home.
How long will these bad credit mortgages continue to stay available? That's a good question, because all signs point to it not being a trend that's going to last for a long time. Short term liquidity is a concern for the banks right now, so that is their primary motivation at this point in time. After they get their money, the bad credit mortgages might not be nearly as available. That is something that potential home buyers need to keep in mind as they seek funding for their dream home in the next few months.