Getting a mortgage loan after filing for bankruptcy can be very difficult. It might make sense from an economical and financial standpoint to file for bankruptcy, but many lenders, like banks and other financial institutions, will not even consider your application. However, that does not mean that that is the end of the road for you. Certain companies still provide mortgage loans to people after they have filed for bankruptcy. Even after bankruptcy loan in Cambridge Ontario Canada is something that some lenders will consider.
When someone files for bankruptcy or a consumer proposal, many lenders believe that they are the kind of person who will walk away from debt. This is not something that lenders look look upon favourably. But, this is not always the case. Sometimes there are very good reasons why people file for bankruptcy or a consumer proposal which are out of their control. Because of this, nowadays, some lenders, including lenders in Cambridge, will give a mortgage to help discharge bankruptcy Loans can also be given to pay off a consumer proposal.
A bankruptcy loan in Cambridge has been made possible for a number of reasons. These reasons are explained in detail below;
The first thing is that it opens up a whole new market of potential clients to a lender when it decides to extend mortgages to people with a Consumer Proposal on their credit or bankruptcy Loans given to these individuals help them get back on their feet, and the bank or lender has gained the trust of a new client.
Contrary to what you may think, there are a lot of people who have either filed for bankruptcy or a consumer proposal. Most of these people never consider applying for loans or mortgages because of their current or past situation. When a lender decides to reach out to these people, they are in essence not only expanding their market niche but also gaining favour in the community and boosting their public image. It can become a win-win situation for them.
Another reason why a lender would reach out to this market niche is that bankrupt individuals or those who have only been recently cleared, unlike other people, are no longer encumbered by debt obligations. What this means is that having been declared bankrupt or filing a consumer proposal and fulfilled its obligations, past debts have been written off. This is something that a potential lender would view as being attractive. The lender would advance a mortgage to you knowing that you likely have no other creditors, hence putting you in a much better position to pay the mortgage on time.
At its discretion a lender will, for someone with a consumer proposal or a bankruptcy loan money as a mortgage in order to help the customer purchase or refinance their home. The individual can continue to rebuild their credit and the lender gets another loyal customer.