How To Handle Being Recently Discharged From Bankruptcy
“My credit score is too low…I have late payments…I was declined by Two Lending Institutions for mortgage”
Françoise received a call from Samantha one afternoon. She and her partner, Tim had both previously owned homes in their past lives and both had filed bankruptcy.
Samantha had purchased a home in Pickering only to find out that it was filled with rodents and had major structural issues that she could not afford to have fix. When she purchased the home she was not told that she should do a home inspection. If she had most of the issues would have been detected. As a result, she had no other options than to walk away from her home.
Tim also found himself in the same predicament and was also force to give-up the condo that he purchased with the help of an unscrupulous realtor.
An appointment to meet Samantha and Tim at Françoise’s office was arranged and they were able to speak with Kristen Gignac, mortgage agent via conference call.
With their permission she accessed their credit information and discovered the following:
- Their credit scores were low;
- Previous late payments were noted on the credit bureau after they had previously filing for bankruptcy;
- They had too much debt;
- Didn’t have the full down payment
- Their mortgage application was declined by two lending institutions.
Kristen and Françoise knew that they could help them and put together a specific plan of action. Kristen worked with them closely giving them advise on how to increase their credit score. She also provided Samantha and Tim a financial plan that would put them on track and help them to pay off their debt quicker. It took them approximately six months before they were able to purchase a home. Kristen had Samantha and Tim pre-approved for a mortgage within their budget.
They were renting in Brampton but preferred to live in Toronto, Pickering or Ajax. Françoise had suggested Pickering and they found their dream home in less than a month of searching. They were able to purchase a gorgeous four bedroom home located on a corner lot with two parking spaces.
Not a bad start for two individuals that had previously filled for bankruptcy. In just five years their home has significantly increased in value and have approximately $190,000.00 in equity.
Françoise and Kristen remain in contact with Samantha and Tim and they have been able to help other family members sell and purchase homes.
