Is a mortgage possible during CP

  • 7 Replies
  • 507 Views
*

undersc0re

  • Newbie
  • *
  • 28
  • +0/-0
    • View Profile
Is a mortgage possible during CP
« on: October 05, 2017, 06:37:52 AM »
I am 2 years into my cp payments, I also foreclosed on a mortgage 2 years ago. Is it possible at all to get a mortgage right now? A short course of unfortunate incidents all overwelmed me at once to cause the financial issues, I am in a good situation now making good money. Just wondering because all they ask is if bankruptcy was claimed in last while on the application. I would rather put a big down payment on the mortgage rather than payoff the rest of the CP as those payments are interest free.
Anyone have any tips to get back into a home during cp and having recent foreclosure?
How come they would not ask if you are in CP or recent foreclosure?
« Last Edit: October 05, 2017, 07:30:36 AM by undersc0re »

*

Wetcoaster

  • Full Member
  • ***
  • 100
  • +4/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #1 on: October 05, 2017, 07:49:29 PM »
I would say it is highly unlikely especially if there was a foreclosure.  Keep in mind if you pay off your CP early then after 3 years it gets removed from your record.


 I did find this....

"Mortgage Application During Consumer Proposal

The answer depends are you talking about renewing your existing mortgage or getting a new mortgage entirely?  In most cases, if your existing mortgage is up to date, you will have no problem renewing your mortgage and may even be able to refinance your existing mortgage.  If you start a consumer proposal and then attempt to get a new mortgage, it will be much more difficult.

You can apply for a mortgage during your consumer proposal.  However, because you are in a consumer proposal it will be more difficult to qualify than if you were not in a consumer proposal.  Your credit report will contain a notification that you are enrolled in a consumer proposal however that does not mean that you will automatically be denied.
 Here are some steps we recommend to help you successfully apply for a mortgage if you need to during your consumer proposal:

First save for a down-payment. Your mortgage lender will not likely approve a high risk loan unless you have a significant down-payment already.
Create a budget to bring to your mortgage lender to show that you have the ability to make your monthly payments. Consider that you will likely be paying a higher interest rate than normal if you are considered a higher risk borrower.

Ask your bankruptcy trustee (or consumer proposal administrator) to provide a letter that you have been making payments under a consumer proposal and that all your payments have been made on time and in full.

Read our article on what you should know about applying for a mortgage. This article contains information that can help you get a mortgage, even if you are in the middle of a proposal.

These steps will not guarantee that you will be approved for a mortgage during a consumer proposal but they can help. You may have to shop around, applying at not only you local bank, but at your local credit union or even talk to a mortgage broker. In most cases, if you qualify, the mortgage interest rate will be one or two points higher than you would get if you had perfect credit, but that will also depend on your income, equity in your house, and other factors.

*

undersc0re

  • Newbie
  • *
  • 28
  • +0/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #2 on: October 06, 2017, 02:09:44 PM »
I figured the cp was bad enough, nevermind a foreclosure. I could put 25% down and I make over 100,000 now. All I can do is rent I guess and pay down the cp quickly for now. I guess it would look bad after those issues to go right back applying for a mortgage while still oweing on a cp.
Is there an easier way to get into a mortgage, such as using brokers or something, or larger down payment? Does the down payment make a difference in getting a mortgage when your credit is so poor?

*

Jennykk

  • Jr. Member
  • **
  • 75
  • +1/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #3 on: October 06, 2017, 06:41:23 PM »
I suggest you speak with a mortgage broker for options. Have you considered paying off your proposal first before getting a mortgage?

*

undersc0re

  • Newbie
  • *
  • 28
  • +0/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #4 on: October 06, 2017, 10:36:08 PM »
Ya i considered paying it off but the foreclosure will be on the credit report, so I figured I would time it to pay it off so they both kind of come off the report at the same time...since the money is interest free, nowadays I got back into working good, and my situation has changed over the last 2 years for the better, I just want to pay towards something instead of renting, and since I hope to retire in 16 years I was thinking 15 year mortgage and planning to have a small place paid off that is easy and cheap to maintain when I retire. If I can not get a mortgage, I don't know what else to do but slowly save up money for 15 years, or go hard day trading and hope for the best.

I was going to pay off the proposal after the third year(one more year) on a five year proposal. I just want to have money for any surprises such as braces for kids, lawyers, fall ill, or vehicle breakdowns.

I think I will apply for a mortgage for the heck of it and see what they say or suggest.

*

pchouinard187

  • Newbie
  • *
  • 18
  • +1/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #5 on: October 13, 2017, 11:25:47 AM »
I can't say anything about foreclosure, but during a CP you can speak to a Mortgage Broker. I had briefly looked into getting a mortgage after the two year mark of my CP and basically my Broker looked into a "bad credit" mortgage but the conditions would be having to put at least 20% down and expecting a higher interest rate and the mortgage would likely be provided through a private investor.  Ultimately I decided against it.   

*

undersc0re

  • Newbie
  • *
  • 28
  • +0/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #6 on: October 20, 2017, 08:36:12 PM »
I did not get pre approval for mortgage, due to many restrictions on mobile home mortgages It is a no go. I did not know getting a mortgage on an older mobile was so complicated, they want cmhc no matter how much you put down, and a few other details.

*

Jennykk

  • Jr. Member
  • **
  • 75
  • +1/-0
    • View Profile
Re: Is a mortgage possible during CP
« Reply #7 on: October 20, 2017, 08:59:14 PM »
The new regulations make it more difficult to qualify for a mortgage. :(


 

Sitemap 1 2 3 4 5