http://Leahcoss.ca
Hi, everyone! How are you? It's Leah Coss with the Mortgage Center. I wanted to get a very common question out of the way real quick for you guys. And that is: I've had a bankruptcy in the past, can I ever get a mortgage again? Quick answer, absolutely! Now, if you come to me and you say, "I have two previous bankruptcies." Well, now we're real limited but does that mean you cannot get a mortgage? Absolutely not! You can still get a mortgage, you just simply have different requirements than the average Joe.
So, to quickly go through bankruptcies, if you've had a bankruptcy, not the end of the world. And no, it is not the seven year rule of bad luck where you cannot get any debt given to you i.e. lines of credit, credit cards, mortgages, things of that nature, car debts, car loans.
You don't have to wait seven years before you can get that. You can get that right off the bat sometimes for some of those types of lending, OK? Obviously you can't get a mortgage right off the bat but you can get things like credit cards, whether it be unsecured or secured, it just depends on the person and what your situation is exactly.
But from the point of discharge you can be getting a mortgage, a regular mortgage, meaning from a regular lender, this isn't talking about private. A regular mortgage in two years, OK? It's not seven years. The thing is though, if you want to be able to buy within two years of your discharge, you are going to have to find someone like myself or somebody who's willing to spend time with you that's going to help you to build your credit back up.
Because if you just kind of leave things alone, you don't do anything for a year and then another year goes by and soon you're like, "Oh, geez! It's been two years! Leah said that I can get a mortgage."
Not the case! When you've had a bankruptcy, I guess the rule of thumb that you can go by or a good rule to follow is, if you've had a previous bankruptcy lenders want to see two years of new, healthy credit with a minimum of two credit lines reporting, meaning a credit card and a car payment. Or a credit card and a line of credit or two credit cards, whatever the case is, two credit lines showing on your credit bureau that are active, not delinquent, not with late payments, OK?
And they want to see that you have at least $5, 000 of debt available to you, not racked up, $5, 000 available to you! So, it would be like two credit cards with $2, 500 limits on both of them that you're treating well and using consistently and responsibly. OK?
Now, if you've had two bankruptcies, now you're basically ... you will be unfortunately in B lending until a full seven years is gone by. The seven rules comes from, or the seven year rule simply comes from everything in the credit report stays there, whether you've paid it, been delinquent on it or been amazing on it, it stays there for seven years. After seven years it disappears and you get to kind of start anew, OK?
So, until both of those bankruptcies are off your bureau, it's going to be difficult for you to get a mortgage. But if you've had one bankruptcy, not the end of the world. You just need coaching to build back up, then you'll be able to buy and you should be fine.
Worst case scenario, as I mention in all of my blogs, if you've got multiple bankruptcies or you've had a bankruptcy and now you've got collections on there or something of that nature, there's usually always a private lender who will do it. The problem is that the higher the risk you are, meaning the worst history that you have without a legitimate story as to why, you know, if you just don't like paying bills nobody likes to lend to you.
But if you haven't been able to pay your bills because you had a massive car accident or you went through a divorce or you got laid off or something where there's a story to it, if you have enough skin in the game a private lender will at least do it. Because the deal makes sense and they can make money. So, why wouldn't I?
So, if you need to get in contact with private lenders, if you want to know more about your personal situation due to bankruptcy or collections or foreclosures, give me a call. I can help to give you a step by step kind of process to put you over the course of two years, get you to a point where you can qualify for a mortgage and hopefully get you into a home sooner rather than later as well.
If you have had a bankruptcy and you want to get into a home today and you don't want to wait the two years, you are a perfect candidate for Leasing to Own. And what that means is that you lease your home today, we coach you for two years, get your credit to a point where you now can get a regular mortgage. Then at the end of your lease term, you buy it.
So, a really simple process, a great fantastic program if you're dealing with the right people. Luckily I know a lot of the right people so give me a call, I'd love to help you out. Leah Coss with the Mortgage Center.
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Filing for Bankrupcy Is Not 7yrs of Bad Luckby MortgagesInVancouver1,241 views
Hey Leah,
Nice vid. The only thing is that a double bankruptcy sticks for 14 years (with Equifax) so your actualy stuck for a little longer in this case.
troosyreen 7 months ago