An adverse mortgage is just a loan given to someone with a bad credit history. Getting a mortgage with bad credit is not as hard as you might think, but it will cost you more because your monthly rate and payments will be higher than those of people with good credit.
In the United States and the United Kingdom, bad mortgage loans have become more common over the past few years. People who have had bankruptcies in the US, county court judgments (CCJs) in the UK, or other credit defaults or mortgage late payments are often given these loans.
More and more banks and other mortgage lenders are getting into the "adverse mortgage" business. This is mainly because the high and sometimes ridiculously high interest rates more than make up for the extra risk to the lender.
The news is good for people who need to look for an adverse mortgage because there is more competition. Like in any other business, competition drives prices down. Even people with a history of bankruptcy, bad credit, or mortgage payments that were late or in arrears can hope to get a good deal when they refinance their homes through an adverse mortgage.
There are a lot of bad credit mortgage options available right now, and the ones that are advertised on Web directory sites are the easiest and fastest to find and compare.
If you have filed for bankruptcy or are in the middle of one in the US, have been late or behind on mortgage payments or are doing so now, are in danger of losing your home due to foreclosure, or live in the UK and have a county court judgement against you, try refinancing with your current lender first. Once that option is out of the question, you can try to get a loan from a bank or mortgage company. When these people turn you down, go on the Internet and look for banks and other places that lend money to people with bad mortgages.
Here, it will be easy for you to narrow down your smart adverse mortgage options and get quotes for refinancing from the lenders you like best.
Most online questionnaires are thorough, exact, and detailed, but they are also very safe and private. A trained member of the adverse mortgage staff will look at your credit history, your payment history, the balance you owe on your home, the money you need to borrow, the rate you are paying now, the rate you can afford to pay, and the terms. She or he will look through the whole mortgage business to find you the best deal for your budget and your needs.
Self-certified mortgages are also possible, even if you don't have all of your bookkeeping records or need commercial refinancing instead of residential. Even people with bad credit can sometimes get a mortgage with no money down.
Not everyone who hasn't paid their bills on time or has bad credit needs an adverse mortgage, though. Some people can still get a standard mortgage or refinance with their current lender or another common lender. Some business owners can get a secured loan or a bridging loan with a long or short term.
