Poor credit mortgage lenders specialise in loans exclusively for the subprime credit market. This represents higher risk lending due to the borrower's repayment history. Whilst mortgage refinance with bad credit used to be relatively easy to attain, the recent economic turmoil has changed all that.
Poor Credit Mortgage Lenders
Lending money to those with an adverse repayment history is a high risk/reward area. Although the default rate is considerably higher, it offers the provider the chance to charge more interest on the loan. Whilst mortgage companies for bad credit will still loan money, other criteria have been tightened.
FICO Credit Score
Failing to comply with the T&C's of a credit agreement will be registered with the three major credit reference agencies (Experian, Equifax and TransUnion). The greater the credit transgression, the lower a FICO credit score will be. Chapter 7 bankruptcy and foreclosure are the most detrimental.