One of the more challenging aspects about working in the mortgage business these days is the inability to help everyone that deserves it. Today's mortgage market is very unforgiving to those who have stumbled on hard times. One of the questions I am asked by my clients most often is can I refinance my home with bad credit?

Early 2000 through last year millions of people with poor credit took out two and three year adjustable rate mortgages. These loans were used to either refinance or buy their homes. These 2/28's or 3/27's, as they were called, were much easier to qualify for than conventional FHA mortgages. The Quid pro quo from the lenders was 'make your payments on time and we can refinance you into a better mortgage before this loan begins to adjust?.

Unfortunately, by in large, that promise that cannot be honored in today's mortgage market. I believe that these promises that the lenders made to refinance the borrowers into better mortgages were well intentioned but naive. Seriously, in hindsight, how smart was it to put borrowers with bad credit in a long-term mortgage with the stipulation that they must make all of their payments on time to get a better loan?

The rub is that most of the people who took out these mortgages were unable to prove adequate income to support the loan. These loans were called 'stated income' loans. Meaning the 'borrower' would state the income they made and it was not verified. To that note, many people with poor credit were put into mortgages they could not afford with the promise that it would eventually their payment would go up.

That sounds pretty silly when you say it out loud doesn't it? Now that there is a 'new religion' in subprime lending, lenders have almost ceased facilitating 'stated income' mortgages. That's great, however what about the people that are still unable to prove their income whose interest rates have jumped to 11%? These are the people who will be the casualties in this debacle.

The good news is that FHA announced earlier that they would now begin to relax their guidelines with a program called FHASecure. This new program will allow people who are currently late on their mortgage due to it adjusting to refinance into low interest fixed rate mortgages. The caveat, borrowers must prove enough income to qualify.

This initiative by President Bush and the Federal Housing Authority will help quite a few people save their homes. By in large though, most of the people in these adjustable subprime loans will not be able to qualify for the new FHASecure mortgages. Something else will need to be done or defaults and foreclosures will increase.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Investing In Foreclosures
When homeowners fall behind on mortgage payments, foreclosures may occur. A foreclosure is a process in which a financial institution repossesses or sells a piece of property because of a loan default. Mortgage lenders usually consider a mortgage to be in default when payments haven't been made in ... more...

Mortgage Foreclosures in Huron County, Michigan: Learn About Your Options
Mortgage foreclosures in Huron County, Michigan are on the rise. Michigan's economy has been called a "one-state depression." Huron Charter Township is located in Wayne County with a population nearing 15,000. Job losses, and defaulted mortgages are now sadly the norm, and Huron Township ... more...

Know Your Options to Stop Foreclosures in Michigan
Michigan is one of the leading states in foreclosures. This article is about ways to stop foreclosures in Michigan. We are not attorneys, but real estate investors, so make sure you check anything we say with an attorney if you want professional legal counsel. The first way you can stop the ... more...

This Is Only The Beginning Of The Swarm Of Foreclosure Houses
Delinquency and foreclosure rates are rising on subprime mortgages. As evidenced through the most recent results from the Mortgage Banker's Association National Delinquency Survey of first mortgage loans, foreclosure rates are on the rise. Currently, the national delinquency and foreclosure rates ... more...