It might seem strange that there are lenders willing to offer a new mortgage to someone with bad credit. At first glance, concerns may arise hat such lenders are doing little more than trying to facilitate a scam. In some cases, they may very well be involved with something illicit. This is why it is so very necessary to take steps to review any and all background information of services offering mortgage refinancing with bad credit. You might very well be able to determine the offer being put forth is not exactly as good as it claims to be.
That said, there is no reason to assume all offers to refinance a mortgage for a person with bad credit are automatically a fraud. There are quite a number of legitimate lending institutions willing to present a second chance to someone with bad credit. Doing so is risky and no one would suggest loans of this nature are not. However, there are lenders that do make risky loans a portion of their lending portfolio.
The risk might not even be that much. If the borrower had bad credit in the past, but has been making timely mortgage payments for a full three years, he just might be worth appropriating (so to speak) from another mortgage company.