Buying A Home With Bad Credit

From Newsweek in August 2007:

"Everyone was getting loans. People with worse credit than me, even."

But the once booming housing market is now foundering in many cities, largely because buyers with shaky credit scores like Miller’s have been defaulting on their mortgages in record numbers. Last month Freddie Mac, a huge investor in U.S. mortgages, said it would stop buying certain types of subprime loans. So what are the credit-challenged-but-house-hungry like Miller to do? The options are limited:
People had hoped they could refinance their rapidly appreciating new homes to cover the higher payments.
In recent years, as the housing market boomed, lots of loans were handed out with little or no proof of income, which are called "liars’ loans" by critics. Sen. Christopher Dodd says he plans to introduce a law that would essentially allow you more time to solve loan problems before foreclosure. In the meantime, lenders urge troubled borrowers to keep in touch. 

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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