Insolvency and Mortgage

Some time ago, an unfortunate situation you
has forced to make a session of your property, or if you prefer,
you went bankrupt. Today, your situation
fnancially improved, you would like to
buy a property, but what will be the reaction of
mortgage lenders face this bankruptcy?
The majority of regular fnancial institutions will
additional conditions to those usually required. There are some
who will refuse to consider your request.
What are these conditions?
• The fnancial institution you are addressing does not need to
to have lost money in this bankruptcy;
• You must have been released from bankruptcy for two years;
• Your credit must have been reinstated using credit products
for at least one year and sometimes two years;
• A down payment equivalent to 5% or 10% of the purchase price
will be required, according to the lender;
• Some institutions will only consider your request
if your bankruptcy was for a reason deemed acceptable and a large amount.

In the event of financial difficulties
Your income no longer allows you to meet your obligations,
but you refuse to go bankrupt? An advisor can you
suggest proceeding by consumer proposal.
This proposal is actually a mechanism that allows you to
make an agreement with your creditors to extend the payment
partial or full debt. This procedure allows you
to avoid facing justice and a judgment rendered
against you for non-compliance with your obligations.
Other similar mechanisms, such as the proposal
(for business owners) and the depository
voluntary (for individuals) may also be used.
All these possibilities have the same goal: to avoid the seizure of your
property by your creditors.

What will be the position of mortgage lenders if you
did you use any of these mechanisms?
Although you have made arrangements to pay your debts
in part or in full, the lenders will consider you at the same
as an ex-bankrupt. You will have to meet the same conditions
than those required of them, mentioned on the page
former. Fortunately, mortgage brokers should
despite everything, be able to help you in your project.
Indeed, they can find temporary solutions
by directing your file to alternative lenders. Rates
offered by these are higher than the current rates but
the standard is for these loans to be short-term. This period
allow you to restore your credit and, when the term expires,
your broker can direct your file to an institution
fnancial agreement.

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