Let’s take a look at house loans for people with bad credit.

Before, it was pretty easy to get any kind of home morgage loan with bad credit. Those little devils were called the stated income mortgage loan. And, as Im sure you are aware, these little guys were really the heart of the financial crisis that we are dealing with right now. What happened was all of these sub prime loans got out to people, and all kinds of folks that couldn’t really afford any of this, went and bought homes and got mortgages that they couldn’t afford.

From this, what happened was eventually, people counn’t keep refinancing their loanns and they couldn’t keep getting more and more easy credit. Eventually, the cards started collapsing,a nd lots and lots of foreclosures started happening. As more and more people went into foreclosure, banks started to get a bit untable, and they started to collapse as well. Read the rest of this entry