Home loans with damaged credit is becoming increasingly hard to do. Much of the damage caused to the financial system by over lending has yet to be fully felt.
People with bad credit are still having difficulty arranging home equity loans and will continue to do so for the foreseeable future. This problem is not going to change overnight. The banks have damaged their ability to lend and borrow, perhaps permanently.
Mortgage rates will continue to rise over the nex Year and will eventually force house prices even lower than their current values.
For those wishing to refinancing with bad credit the problem may not be insurmountable, but a high price must be paid. Either with increased charges fees or through some other cost.
In the end, no mater the damage to one’s credit rating, the result is inevitably the same - increased charges.
There is no escaping from the current lending environment, until such times as the mortgage institutions have been stabilized and are once again free to lend in a healthy style. How long this will take to achieve is an unknown. More than 45 banks have gone into liquidation this year in the USA alone. Similar issues beset the UK mortgage providers, and no sign of recovery on the horizon.
The current solution to the problem has not managed to stabilize the system, and will not do so for a time. Refinancing with damaged credit will continue to be difficult.