Subprime Mortgage Loans Being Phased Out

In my previous post, I talked about the subprime mortgage loan and how it relates to the record-breaking number of home foreclosures in recent years. I also mentioned a tutorial I put together to explain how subprime loans work.

A recent article on the Wall Street Journal's website explains that some major lenders are actually phasing out their subprime mortgage loans. Says the Journal: "Some lenders are eliminating what until recently was the most popular type of home-mortgage loan for subprime borrowers, or borrowers with weak credit histories."

This development comes at a time when lenders are under intense scrutiny for their subprime lending practices, as those practices related to borrower default and foreclosure trends.

I will monitor all of this and keep you posted.

Subprime Mortgage Loans - New Article Posted

Subprime lending and subprime mortgages have been in the news a lot lately. They usually piggyback on a news story about the current spike in home foreclosures.

People default on mortgage loans (and go into foreclosure) for many reasons, so it's possible to put blame onto any one item. But one thing is perfectly clear -- there is certainly a connection between the number of foreclosures in this country and the rise in subprime mortgage lending a few years ago (and still going on).

So what are subprime mortgage loans, and how do they relate to foreclosures? And if you find yourself in a subprime lending situation, how can you protect yourself from becoming another foreclosure statistic?

These are the questions we have tried to answer in our latest home-buying tutorial:
A Guide to Subprime Mortgage Loans

Happy home buying!

~Brandon