if the housing market is dropping?

Question

why don't they make it easier for people with bad credit to buy?

i'm talking about the ones who fix their credit, then they try to buy a house, but they still have bad credit

i'm not saying i want a $200 thousand home

some people do want to have a place of their own-not rent, and some people do have problems on why they quit paying bills, like lay off, or getting fired, or company downsizing

i didn't say fixed up- i said that they fix their credit, by paying off everything, and is still considered bad

Answer 1

Because that was the beginning of what started this mess, they did

Answer 2

The housing market is dropping on prices. This drop is because lenders have been making a lot of loans that were either Alt-A or subprime (Alt-A is above subprime but below prime). This has caused the current “mortgage meltdown” we are going through. The period that someone with poor credit to buy a house was the past 3 or 4 years. The lending standards were so low anyone with a pulse could get a mortgage.

Many lenders were taking on a lot of stated income loans. This is basically a loan where a person says “I make 40k per year” and the lender says “OK, here’s your loan”. As can be expected, a lot of people lied.

As for why those with poor credit should not get home loans, I believe that it is because foreclosing on a home is expensive and takes a lot of time. If a bank lends you money and you decide to stop paying, they are immediately losing money. On top of losing the monthly payment on the loan they now have to get their lawyers involved to start a foreclosure procedure which costs additional money. This is why lenders avoid those who do not pay their bills, even if it is for a “good” reason.

You mention that the credit is fixed up. Could it be that your credit isn’t as fixed as you think? Fixed credit should be a score of around 680 and up. Less than 680 is given an Alt-A loan, which is what is currently being tightened up.

Answer 3

The market is dropping in most areas. It is rising in some. "rising" and "dropping" here has very little specific reference, I assumed you mean prices and not volume etc. They did make it easier for people with bad credit to buy houses and thats much of what has caused the current down turn. People with bad credit have bad credit because they have showed a history of not paying. Would you want to loan money to someone who's history says they wont pay? Maybe so, but it would cost you money on average.

Answer 4

This country has a bad case of entitlement complex. People need to wake up and smell the coffee. They make 40K and want 200K homes in a good neighborhood. Yet they wonder why they get in trouble and end up defaulting on the loans. Don't like living in the ghetto? Do like the rest of us responsible meager-income earners and rent. I have no sympathy for those losing their shirts to the market correction, I can't afford a 200K, but neither can you, giddy up!

Answer 5

Why do you think the market sucks?
People with bad credit buying homes they can't afford and then defaulting on their mortgages when the rates adjust on their ARMs.
Stop the insanity!

Answer 6

We did that. Many foreclosed. Now, the housing market is dropping.