A lender will almost always approve a mortgage for those with ideal credit. An individual with less than perfect or bad credit may still want to purchase a home, but he may not have the option of a traditional mortgage lender. Many people try to improve their credit score or apply for a loan with a bad credit mortgage lender.
Bad credit mortgage lenders are companies that specialize in approving loans to individuals with bad or less than perfect credit. Sometimes, these lenders are referred to as hard money lenders because they accept borrowers with any type of credit score.
One drawback with bad credit mortgage lenders is they often require a large down payment to compensate for the low credit score. Another drawback is the loans often have a large interest rate attached to the loans.
Disputes between bad credit mortgage lenders and borrowers commonly include:
- Fraud: Some loan terms may be considered fraud schemes or bad credit scams.
- Missed payments: Missed mortgage payments can result in defaulted mortgage loans and foreclosures. Often, borrowers sue their mortgage lenders because their lenders will allege that the borrowers missed loan payments when they actually did not miss any payments.
Mortgage loan fraud occurs when a lender participates in illegal actions to deceive borrowers into entering a loan. The mortgage loan is solely for the profit of the lender, not to assist the borrower in buying a home.
To understand and resolve issues with a bad credit mortgage lender, contact a real estate attorney. The attorney will explain your legal options and file a lawsuit on your behalf.