Because they were so readily available many people opted to purchase their new home with a sub prime mortgage. At the time nobody thought that a bad credit house loan would lead to all the problems we are seeing in today's market.
The problem with bad credit mortgages start when the borrowers, many of whom have not improved their credit scores try to refinance. At this point they learn that the programs that they originally bought their homes with no longer exist. And in the current real estate market they may also learn that the house that they bought for no money down has declined in value, they basically owe more then the home in now worth
Both of these are major problems and make refinancing their original bad credit house loan next to impossible. Add in the fact that most sub prime loans were sold as short term adjustable loans and its clear that mortgage payments for many people will be increasing very soon. All this adds up to a difficult situation for many without they act fast to save their homes.
One of the best ways to help save your home when you can not refinance is to work out a loan modification plan with your mortgage note holder. This is very easy to do and you can start with a simple phone call to the lender and ask them what help is available to you.
Many times they will be very flexible to customers who have paid on time and are making a true effort to pay for their homes. Often times they will modify your loan over to a fixed rate, or if you are behind in payments allow you to make them up over time. However if you have always been late with your mortgage payment do not expect much in the form of lender assistance.