Bad Credit Home Loans - Becoming Extinct?

The subprime roller coaster continues, with more and more cities citing record-high foreclosure numbers. One might think that the bad credit home loans that caused these problems would become extinct. In fact, it's true that many of the subprime / bad credit lenders who were peddling these loans have gone out of business (or soon will).

But is the bad credit home loan becoming extinct? No. It's just lying low for a while. You see, selling mortgage loans to people with low credit scores is profitable (for the lenders anyway). Sure, it can put a hurting on the unsuspecting home buyer who did not read between the lines when signing the paperwork ... but that's just the price of doing business. Right?

Am I being cynical? I'm being a little cynical. In truth, I am against bad credit home loans that grant home ownership to people who cannot afford it. These types of loans just cause problems for everyone. And when they are sold in huge volumes (as in the 1990's), they create far-reaching economic problems (like the recession of current times).

"It's a bit of a rough patch," says the president. Sorry, George, but you are wrong. It's a recession. Wake up and listen to your economic advisers already. It's a recession, and the bad credit home loans made by your cronies helped to create it. (See subprime love story for more on the crony connection.)

What am I getting at? Sorry, I lost track for a minute there. What I mean to say is that there's a new article on the main website that explains the bad credit home loan in all its gory detail:

Bad Credit Home Loans - Usually a Bad Idea

Hope you like it. Have a great weekend. I'll blog with you again soon.

-Brandon