Is the title of this post an oxymoron or what…“bad credit/mortgage loans? Not really.

Interesting that when a loan is collateralized properly (there’s something to loan against like real estate) that banks become much more liberal in their credit criteria.

Case in point, there are various lenders which will offer decent mortgage products to clients who are 1 day out of bankruptcy.

There are lenders who will loan (with court approval) to persons who are in a bankruptcy. If the bankruptcy trustee (The Judge) feels it’s in the best interest of the parties concerned they will sometimes agree to a cash out refinance for someone who is repaying debt under bankruptcy protection.

Thirty, sixty and ninety day delinquincies are meaningless to non-conforming lenders. They only require charge offs of over $5000 to be repaid. 

So, if you’ve stiffed the cable tv, gone bad on the telephone bill, burned a half dozen doctors hostpitals and dentists; worry not.  Lenders don’t take a second look, they could care less if you decided not to pay some department stores credit cards and various other businesses.

In the past couple years, we brought to market a fine mortgage product for around $330,000 for a client who had a habit if writing bad checks to Pizza Hut and Dominos.  It was a real hoot.  Guy earned $200,000 plus per year, had $20,000 to $30,000 incoming cash monthly…but couldn’t make good on the $20 buck pizzas!!

In any case…if you find yourself the least bit hesitant because there’s a skeleton or two in the closet…don’t. Just own up tell us what you want, and we won’t hold any previous dusty credit against you. Previous slow or nopay is not a license for a mortgage professional to take advantage of a client.

I understand…I’ve been down a couple of bumpy roads myself.