Bankruptcies and Consumer Proposals

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Use a home equity loan to payoff a proposal or bankruptcy. Restore your credit, improve your monthly cash flow and get back on track.

Life After A Bankruptcy Consumer Proposal

A bankruptcy-consumer proposal is when you assign (give over) everything you own to an Insolvency Trustee (Licensed) in exchange for eliminating your debts. Sounds straight forward but there are rules and guidelines to follow and they can differentiate in every province. Be sure to contact your local Licensed Insolvency Trustee to get accurate and up to date information. The process is governed by federal law and is a legal procedure.

What are some of the options to get a mortgage while in a bankruptcy?

How do I refinance a home if I’ve had a past or current bankruptcy?
The first key to refinancing a mortgage while in a bankruptcy consumer proposal is ensuring it gets included with your new financing. The second key is choosing the right team. There are a number of lenders that look at the big picture. The right team of mortgage professionals can help connect you with those lenders.

How do I purchase a home if I’ve had a past or current bankruptcy?
A previous bankruptcy consumer proposal can affect which lenders will consider you for a mortgage. Don’t worry it’s not the end of the world. There are two approaches that can be used to help you purchase that home.

What are some of the common options to get a mortgage with a bankruptcy consumer proposal?

How do I refinance a home if I am in a proposal or recently paid one off?
In the mortgage lending world there’s a place for most situations. So refinancing while in a proposal is possible. Alternative lenders are willing to work with you to pay off consumer proposals. A mortgage refinance can be put in place that will not only get rid of a negative debt but can help your credit recovery. This will fast track your credit repair cycle in order to qualify for better financing in the future.

Can I buy a home if I am currently in consumer proposal?
There are a number of lenders that will consider offering you a mortgage while in a bankruptcy consumer proposal. Alternative mortgage lenders consisting of B Lenders and accredited private lenders would be the main options. Institutional mortgage lenders would require that you pay off your proposal prior to closing a mortgage on your new home.

The down payment required whether you are in a consumer proposal or discharged from one will be 20% of the purchase price of your home price (subject to change). The more money you have to put down on a purchase the more lenders you’ll have access too. A co-signer is also helpful in these circumstances, however, a down payment of 20% or more will still be required.

Why you should pay off your consumer proposal early?

Paying off your consumer proposal early is one of the best ways to start your road to credit recovery early. It not only reduces your monthly expenses but affords you the opportunity to apply for conventional financing sooner. Once the proposal has been paid and the necessary timeframe of 24 months has passed you will be in a position to apply for a better mortgage interest rate, a no-fee or low-fee credit card, and a personal line of credit.

Looking for more information or help; give us a call today to find out more.