When a person is in bad credit, it depicts to the world that he is not worthy of credit. If he tries to take a personal loan, banks and financial institutions will shut their doors on him. Only sub prime bad credit lenders will give him money but they will charge exorbitant rates of interest. However, he can avoid all these problems if he goes in for a mortgage loan. In this type of loan, the borrower has to give same asset as a security for the loan. If he defaults on the loan, the lender can sell the asset and use that money to realize the loan.
Mortgage lenders charge very reasonable rates of interest as their own risk is very less. Bad mortgage lenders may charge a small premium fee as compared to the regular mortgage lenders as it is considered a huge risk to lend money to a person in bad credit. Forbes and various other agencies conduct surveys and compile a top ten list of bad mortgage lenders. Based on these data, let us analyze the names that are on the list.
Citigroup: The largest financial services company not only in America but in the entire world-this honor goes to Citigroup, which assets exceeded $ 1trillion. It has more than 200 million customers in more than 100 countries. It is the largest issuer of credit cards in the entire world. It survived the great depression, innovated itself in the mid-20th century and feel into a series of scandals in the early 2000s. Still, it holds its ground because of its unparallel service and total solutions. Its major competitors are JP Morgan chase & Co., Bank of America Corporation and Merrill Lynch & Co.. Citigroup has a still longer way to go. It has set its expectation for a 75% increase in dividends. Only time will tell if this dream is to become a reality.
Citigroup tops the Forbes list as the best mortgage company for bad credit. One main reason for this is the unparallel customer service that this company provides. This corporate giant has a large network of support to ease the application and use of mortgage loans for its borrowers. It has a great reputation that it preserves untarnished. It operates in moose than 54 countries apart from America. In 2006 alone, it had a revenue of $ 108 billion and current assets of $ 1.3 trillion.
Bank of America: Next in line appears the Bank of America. It ranks second in the Forbes list. This is America's leading bank. It is a leader in offering mortgage services and small loans to its customers. It is not only the third largest American bank but is also a guru in credit card dealing. The best part in availing a mortgage here is
I) There is no application fee and closing fees here
Ii) There is no need for private mortgage insurance
Iii) it has close on-time guarantee and the best value guarantee
Iv) Bank of America has 24/7 support to check application status and get real time status updates.
Wells Fargo Bank: Wells Fargo is the major American mortgage company. It has more than thousands branches spread across the world. Out of its' revenue of $ 33 million in 2005, mortgage lending contributed a major portion. As per the market cap, this bank is the 9th largest in the world and it is the 5th largest bank in America as per its assets. It has more than 23 million customers and nearly 160,000 employees.
Wachovia: Wachovia is the fourth largest mortgage bank in America. They have a 25% discount offer on the origination fee if you use their online service. Wachovia asses mortgage-takers in every step from buying a new house to moving in. In fact, they have a 'Move Easy with Wachovia' program wherein you can avail their moving service at no additional cost plus you can even win a cash reward if you use their network real estate agent to purchase your house.
Golden West Financial Corporation: The third largest savings and loan corporation in America is the Golden West Financial Corporation. It has nearly 450 locations. This is one of the best and largest bad mortgage lenders in America. It focuses mostly on the individual home buyers. One small disadvantage of this company is its traditional nature. It is not quick in taking up and offering the zillions of other little products and services that other companies offer. But, still it has held its ground even in difficult economic environment.
BB & T: BB & T provides total financial solutions for everyone-right from student loan and home loans to loans for raising capital and financing businesses. They offer credit cards, insurance, merchant services and all. It is the nation's 14th largest financial-holding company and has locations in over 11 states at 1500 places including the Washington DC It has nearly 29000 employees to provide a total comprehensive service solution.
Popular: Puerto Rico's largest bank is Banco Popular and this is a subsidiary of Popular Inc., a bank holding company. It is the largest vehicle-leasing and daily-rental company of Puerto Rico and issues mortgages and other loans. It has seen a rapid growth in US in last few years and now stands as one of the leading provider's of bad mortgage loans .
After this appear M & T, Marshall and ILSLEY, Amsouth Bancorp and Synovus Financial. They find a predominant place in most of the lists of bad mortgage lenders. This list is neither accurate for all times nor is it comprehensive.
So, always shop around and get quotations from various lenders before choosing the lender who is best suited for your financial situation. Remember the business maxim 'caveat emptor' – 'let the buyer be aware' applies to mortgage loans too.