Posted by Funds2Go
Home Loan With Defaults–Bad Credit

Home Loan With Defaults–Bad Credit

YES you can still qualify for mortgage even with bad credit

Let Lenders For Growth help you.

Source: Hannif Highclass c/o Lenders for Growth / Rosmount Capital Funding
Publish: Funds2Go BLOG: Mortgages, Loans, Financing 

More than one in eight adult Canadians will declare bankruptcy or negotiate a debt settlement – consumer proposal – with creditors. That’s a lot of people with devastated credit.

The majority of those people will want a mortgage at some point, but they’ll find their options are limited. Following the credit crisis, funding shrank for high-risk mortgages, causing more than a dozen sub-prime lenders to close their doors in Canada.

However, Private Lenders – “Lenders For Growth” “Rosmount Capital Funding” -can help in such circumstances Call: 416.444.4252

paid_and_unpaid_defaults

Home Loan With Defaults

 

WHAT IS A DEFAULT?

A default is a record on your credit file stipulating that you have an overdue account such as a loan, credit card, utility bill or phone contract.  It is classed as being overdue if the payment is 60 days late or if the lender has been unable to contact you.

It is your responsibility to make sure that all of your creditors have up to date contact information so that they can contact you if you are not making your repayments. In reality many lenders do not manage their customer databases well so some defaults are really the lender’s fault, not yours.

Defaults are lodged on your credit file with EQUIFAX /TRANSUNION and this information is accessed by lenders when you apply for a loan. A default will remain on your credit file for 5 years or 7 years if the reason it was lodged was because the lender couldn’t contact you.

Paying the default doesn’t remove it from your credit file, however it does change the status to ‘paid’ which is seen more favorably by lenders.

 

HOW MUCH CAN I BORROW

You can get approved for a home loan even if you have several defaults on your credit file.

The types of defaults that you have, how old they are, if they are paid and the total number and dollar value of the defaults are all taken into account by our lenders.

Yes we can ! Private Mortgage Lender  Less than $500 in paid defaults: You can borrow up to 85-90% of the property value.

Yes we can ! Private Mortgage Lender  Less than $1,000 in paid defaults: You can borrow up to 75-85% of the property value.

Yes we can ! Private Mortgage Lender  Any unpaid defaults or larger paid defaults: You can borrow up to 85% of the property value with a private lender. (like Lenders for Growth)

If you meet this criteria then please call Hannif Highclass @ 416.444.4252 or inquire online and we can help you get approved for your mortgage.

 

WILL I QUALIFY FROM THE BANK

To qualify with one of the banks you must normally meet the below criteria:

Yes we can ! Private Mortgage Lender  No more than $500 in defaults if you are borrowing up to 90%.

Yes we can ! Private Mortgage Lender  No more than $1,000 in defaults if you are borrowing up to 80%.

Yes we can ! Private Mortgage Lender No more than two defaults in total for the one application.

Yes we can ! Private Mortgage Lender  You must have paid the default at least six months prior to the application.

Yes we can ! Private Mortgage Lender  If you are purchasing a property then you must have at least 10% in genuine savings.

Yes we can ! Private Mortgage Lender  You must have a very good reason for your impaired credit history.

Meeting this criteria doesn’t guarantee that a bank will accept your loan. All applications are assessed on their merits and all banks will credit score your application.

What if I don’t qualify with a bank? Most borrowers do not qualify with a bank and instead apply with one of our private lenders. We can then refinance their loan to a bank once their credit history is clear.

Many borrowers have still managed to get into their dream home by getting a 1st. Mtg. from the banks and a small 2nd. from a private lender

 

WHAT ABOUT PRIVATE LENDERS?

PRIVATE lenders are more flexible and can consider more defaults than the banks can.

The flip side is you will normally pay a higher interest rate than you would with a bank home loan. However private lenders don’t just lend to anyone!

All Canadian lenders want to approve low risk borrowers. They are happy to consider people with a bad credit history however they are more conservative than the banks in other ways:

Yes we can ! Private Mortgage Lender   They accept more defaults than banks.

Yes we can ! Private Mortgage Lender   They will listen to your explanation for your bad credit history.

Yes we can ! Private Mortgage Lender   They can consider a low doc loan with less income evidence.

xxx It is very difficult to finance vacant land.  -  (However private lender  Lenders for Growth // Rosmount Capital Funding does!)

xxx Few private lenders offer construction loans. -  (However private lender  Lenders for Growth // Rosmount Capital Funding does!)

xxx Few private lenders accept properties over 5 acres in size. -  (However private lender  Lenders for Growth // Rosmount Capital Funding does!)

Can you will qualify with a private lender? Call Hannif Highclass @ 416.444.4252  or inquire online and we can help you to get approved for a mortgage.

 

ARE LOW DOC LOANS AVAILABLE

Yes, you can get a low doc loan with defaults on your credit file.

However, the qualifying criteria can be a little complicated as the lenders have very different lending guidelines for low doc loans.

Please call HANNIF HIGHCLASS  @ 416.444.4252 to discuss this with one of our low doc specialists.

 

WHAT WILL THE LENDER KNOW ABOUT MY DEFAULT

Defaults will show up on your credit file with the status of either ‘paid’, ‘unpaid’ or ‘settled’.

A settled default is where you have made an agreement to pay part of the debt.

The lender will know the date the defaults were lodged, the amount of the defaults, the date they were paid (if you have paid them!) and who lodged the defaults. Defaults remain on your credit file for five years from the date they were lodged.

A default will remain on your credit file even if you pay it however this will look slightly more favourable to lenders. It is important that you are aware of what defaults you have and the status of each of them in order to avoid applying with an unsuitable lender and being turned down due to your bad credit history.

 

 

HOW DO BANKS VIEW DEFAULTS

The banks find that borrowers often say to them that they didn’t know they had a default. Lenders hear a lot of stories and will always assume that you did know about the default.

They simply don’t know who to believe and who not to believe! We always recommend that you apply with lenders that can accept defaults rather than wasting your time applying with the major banks that will decline your application even if you have only had minor credit issues.

Most mainstream banks will not lend to people who have an impaired credit file, irrespective of the reasons. The banks have looked at the repayment history of customers with a default they’ve approved and found that there is a significantly increased chance that these customers will miss their repayments.

They can’t tell the good borrowers from the bad so they decline any application from someone who has defaults!

 

HOW ARE DIFFERENT TYPES OF DEFAULTS VIEWED

Settled defaults A default is listed as ‘settled’ if you have come to an arrangement with the lender to pay some of the amount owing in return for the lender not pursuing the remaining debt. This is seen more favourably than an unpaid default, although it is not as glowing as a default that has been paid in full.

Current defaults A default is listed as ‘current’ if you have paid the overdue amount and the account is still open. For example, if you had a default lodged on your file due to a credit card, pay the amount owing and then continue to use the card, it is listed as ‘current’. These defaults should be viewed the same way as a paid default. However, inexperienced credit managers think that ‘current’ means ‘unpaid’ and will often decline your loan!

Written-Off defaults A default is listed as ‘written-off’ if the lender has tried to contact you several times and has been unsuccessful. Written-offs will remain on your credit file for seven years instead of five years like other defaults. In many cases the reason the lender cannot find you is because you have been overseas or have moved address and have not informed the lender. Regardless of the cause, this is seen as the borrower ignoring their responsibilities. Lenders are extremely wary when considering a loan for someone with a ‘written-off’ default.

Please discuss your situation with us in detail if you would like to know if you are eligible for a loan.

 

In summary make the most of your opportunity by working with us. If it is not possible to get a loan instantly, we will help you work towards getting yourself in position financially to get into your own home as early as possible.

Don’t waste your time with inexperienced brokers, apply with the one who has the experience, and the one who is on your side.

 


Lenders for Growth (Private Lender) - genieSHANTI

REMEMBER:
Please go to YOUR Mortgage Broker if you qualify for Bank Loans!
Come to us ONLY if you know you cannot get Bank financing or been rejected



 

For Your Hard to get Loans & Mortgage Needs

LENDERS FOR GROWTH LTD. and ROSMOUNT CAPITAL FUNDING INC.

our in-house mortgage brokerage and private lenders (FSCO Licence # 12368 & 12369) can help you with all your financing needs. Don’t take NO for an answer. When the banks say no – Let us look into your Financial needs. We have OUR OWN PERSONAL FUNDS and can give you an approval up to 2.5 Million dollars within 24 Hrs!

We do all type of Mortgages and Loans, but non-bank private only and most important from our very own PRIVATE FUNDING.

GO TO YOUR MORTGAGE BROKER DIRECT IF YOU QUALIFY FOR BANK FINANCING.

or call us and we will refer you to fully qualified experienced mortgage professional in your area.

Types of Loans

  • Home Purchase (1st. & 2nd. Mortgages)
  • Home Refinance Loan /Bad Credit Mortgage Refinance
  • Home Equity Loan / Line of Credit /Bad Credit Home Equity Loan
  • Bad Credit / Past Bankruptcy / New Immigrant – no problem!
  • Power of Sale and Pre-Foreclosure Loan
  • Construction Loan / Bad Credit Construction Loan
  • Short Term Bridge Financing /Interest only Loans  and more….

Call: Hannif Highclass @ 416.444.4252

http://funds2go.info

When The Bank Says “NO” Consider Bank Alternative Funding

Get LENDERS FOR GROWTH In-House Funding

For Home Equity 1st /2nd. Mortgage,

Construction Loan, Line of Credits, Debit Consolidation

Lenders for Growth (Private Lender) - genieSHANTI
“JUST DO IT!
THIS IS YOUR GATEWAY
I DID MY PART
NOW IT’S YOUR TURN”

What are you waiting for!

Call: Hannif Highclass @ 416-444-4252

 

 

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