When experts look at the current housing crisis, most place the blame squarely on poor credit mortgages. Too many banks got embroiled too deeply by offering poor credit mortgages and as a result many have either closed their doors or come very close to failure. It appears as though lax lending practices for poor credit mortgages, coupled with economic woes have created quite a problem that will not be solved easily. In fact, many experts wonder if poor credit mortgages will ever be offered again.The definition of a poor credit mortgage is also changing, at least when it comes to bank’s approval processes. Many are deciding that any credit score under 650 is considered to be subprime and they are refusing to approve any new loans for this market. While in the past a poor credit mortgage was usually considered to be for someone with a score of less than 500, this is quickly changing. These rules may become hard and fast as banks look to lessen their risks. The trend certainly seems to indicate that poor credit mortgages are on the way out and may stay out permanently.
Related reading: Poor Credit Mortgage
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