The problems of having a bad credit, rejection of loans and eventually leading to bankruptcy was faced by only a few people but after the recession many of them are facing this critical situation. This humiliating situation can be resolved with mortgage loans. The real problem lies in knowing the fact that how does one resolve a bad credit with the help of mortgage loans. There are a few firms that offer the facility of procuring bad credit mortgage loans that could help to ease the pressure of bad credits. Also there is an issue as to how this whole process could happen. The procedure is simple where one who has a bad credit has to approach the firms that offer mortgage loans, that firm uses the home or collateral property to lend a loan that is the cheapest interest rate one could obtain. To wrap it up in short it is home mortgage. This option is extremely useful for those people whose income has been reduced or who have been issued pink slips due to the recession. The home loans option would be of a great help to the old people who have retired and wish to settle their debts.