Homeowners these days are often looking for the best deal on a bad credit mortgage refinance.
Especially if your credit is terrible, this can be difficult to find: You probably got a loan during an extraordinary period when lending standards were amazingly lax and realistically you probably would not have qualified for a loan during more responsible times.
Now, everyone is in a difficult position: You have bad credit, a mortgage with a high interest rate, and trouble paying the expensive monthly payments.
The lenders are going to be hesitant to refinance your mortgage since you still have bad credit and the lending standards have since risen back to their previous high level.
One of the best things you can do is to know your credit score and begin to understand the factors that affect it.
By diligently working towards correcting these factors, you can help boost your credit score in a few months that may allow you to qualify for a mortgage refinancing loan that your old credit score simply did not allow.
In some cases you may also qualify for government assistance since the government would like to see that you stay in your home as long as you are reasonably responsible with your payments and finances.
The worst thing you can do is to walk away from your mortgage.
This will mean that you will have horrible credit for a long time which will make it difficult to get another mortgage or even to borrow money in order to buy a car.
Abandoning the mortgage should be your last possible choice when you have exhausted all other possible avenues.