Why Have Lenders Closed Shop On Heavy Adverse Mortgages?
You cant find heavy adverse mortgages because lenders have had to stop lending them. Many lenders who previously lent these types of deals have had to close their doors for the time being. The credit crunch has meant there is no money for mortgages that carry risk, so the lenders have had to close shop. It is hard and it has been unexpected but there is no getting round the fact that there are very few, if any, heavy adverse mortgages on the market. The credit crunch did exactly what it sounds like – it crunched the credit in the world to make it a lot less easy to get hold of, so heavy adverse mortgages became non-existent. And to fund mortgages, to actually get the money that goes into the borrowers bank accounts lenders need to borrow money themselves – but no one will lend for heavy adverse mortgages.
