Thanks curiouscredit.

The big bank I was with TD, told me they wouldn't help us out for two years. We switched to a credit union for our day to day banking after they told us that since we had a good down payment and didn't have to go through CMHC, that they would look at helping us out after six months discharged.

The B lender thing scares me. With my luck we'd end up with one that went under and no one would lend us the money to pay them out and we would lose everything again.

Go to a mortgage broker and they will work with you to get you a mortgage.
I read your other posts and it seems like you got a healthy down payment plus a credit card. If your credit doesn't show any collections that are active and it shouldn't because of the bankruptcy, and also if your income support the house price, there is no doubt you can be qualified.

Now, i would try the big banks, but i doubt they will give it to you. I say try because it will give you a baseline on what kind of goal you need to reach. Your broker would be able to help you find B Lenders.

You are in a better position than i am.

Good luck

Hello

When you say you can get a mortgage after one year discharged from bankruptcy, is this with a reputable lender like a bank or a credit union?

I hear you footloose.
I been communicating with the bank, 5 mortgage specialists, wife is a collection agent, her brother is a supervisor at collection agency, Canada Guaranty (AIG) underwriter.

People with a score of 580 can get a mortgage a year after they go bankrupt if they are discharged. Lets get real here, no financial institution would want you to say that they recommend you go bankrupt. Of course they want you to pay them, look at Consumer Proposal.
That is worst than Bankruptcy. I hear that behind the scenes from the financial industry.

If i have gone bankrupt, i would be able to buy the house and that is a fact. That means not paying over 10K would put me in a better position.
I would have a bigger down payment and would actually qualify.

If i didn't go bankrupt and went to Consumer Proposal, good luck. I would wait for another 6 years if lucky to be able to be in a position to buy.

They won't approve me because they say my R9s are current meaning that the creditors can go after me. That is a very very little chance.
Remember my wife and brother in law works there. They get thousands of files passing thru their desks. If they were to pull credit checks on all of them especially they have been flagged as uncollectible, the collection agency would be broke.
What they can actually collect on those files are like 15%. And when they do, they settle near 60% of the value.
In addition, mortgages don't show up on the bureau unless it is a credit line.
Given my income, my history of paying rent which is higher than the mortgage i would get, it is highly unlikely i would default. I was self employed 5 years ago and now i have a secured job. Things change, i have changed. I just have to wait another year and dump another down payment worth of rent down the drain.

These days, mortgage specialists are seeing more lower scores than average. It goes with the economy.

Don't use Consumer Proposal, and if somebody tells you, you shouldn't go bankrupt. Weight out the time it would take you to get back on your feet. It is not 7 Years, it is a year after you are discharged that counts.
I heard Donald Trump went bankrupt many times.
It is not morale wrong. Things happen. People make mistakes. Don't drag on hoping that the bankers will give you a pass because you "attempt" to fix it rather than bankruptcy.

Let me try to clear up some misconceptions that you have regarding mortgages, debts, credit reports and credit scores.

It appears that you and your wife have adequate income to service (pay) any mortgage debt. That obviously is not the problem. The lady at Genworth gave you bad advice when she said that it would be better for you to go banlrupt last year. Bankruptcy should only be considered as a last option, usually when your liabilities greatly exceed your assets. and there is no other way to get a handle on paying down your debts. That does not appear to be your situation.

I don't believe that the parties that you are dealing with are being honest with you and telling you exactly what the problem is. Here is the way I see it.

First, you still have an outstaning student loan of $7800. My reliable sources are telling me that the banks are now taking the position that they will not approve a mortgage if the applicant has an outstanding unpaid student loan, regardless of their income or credit score. That being the case, I would advise you to repay the student loan before making any further application for a mortgage.

Second, you have a credit score of 627. Most lending institutions will not even consider you for a mortgage with a score less than 675 and preferably you should be a member of the 700 club (with a score of 700 or more).

Third, what is keeping your credit score down is your three R9's. That can be a killer on a credit score. You say that they will fall off your credit report next year (I assume because of the six year reporting period). Even if that is the case, that does not extinguish the debt. You still are on the hook for the debt. It just doesn't show on your credit report. That includes statute-barred debts. What most people do not understand is that even if a debt is statute-barred, the debtor still owes the debt and is legally liable to pay it. What a statute-barred debt does is it prevents the creditor from suing you in court and obtaining a court order in order to garnish your wages or seize your assrts, such as a bank account. It still remains as an unpaid debt and a creditor can follow you to the grave in order to collect.

If the three outstanding debts rated as R9 are assigned to a collection agency and the collection agency does a HARD INQUIRY, at either Equifax or Transunion (fishing expedition) then this will raise THE RED FLAG when a lending institution pulls a credit report on you. What the lending institution will do is contact the collection agencies and ask why the collection agency did a hard inquiry on you only to find out that you still have an outstanding unpaid debt. The lending institution may choose to ignore it and go ahead and approve you for a mortgage. But, you should be aware of this tactic because the lending institution will not usually tell you what they found out about you.

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Educating one Consumer at a time

I am trying to buy a house in Ajax and i am being rejected by Genworth.
5 years ago i closed a business because i lost a major contract. Things got bad. I didn't go bankrupt because what was owed wasn't that much and i want to fix it. Now i am making 85K a year and my wife 38K.
She went bankrupt 7 years ago. Genworth wants to remove my name and have her name with a guarantor. They will approve my sister who makes the same as my wife with a 650 score.
Wife score is 653 and mine is 627. I have 3 R9s plus student loan and it totals to $4000 plus student loan is $17k.
My house i want to buy is $309K. We have a car but it is under my wifes name and my friend. In jan 2010 my student load balance was 17K now in may 2010 it is $7800.

The lady at Genworth tells my banker who happens to be my friend and said it would have been better if i went bankrupt last year. She knowing that i pay for the Car and paid 9K for student loan to clear things up. I am finally able to catch up on my bills but yet somebody who has gone bankrupt is considered better at paying?
I thought that they would atleast consider the current behaviour and the ability to pay. With this kind of insight, it is better to go bankrupt then to even try to pay. Don't even try consumer proposal as well.

Here is the kicker, the 3 R9 items will fall off next year. Knowing i am capable of paying and in a year those items will be gone. In addition to offering clearing off those 3 items now, she would not approve the deal.

She said it would not make a difference if i paid it or not. But this is really stupid because if i just wait next year, it falls off and i don't even have to pay it. I was trying to pay it, but it won't make a difference so what the hell am i trying to pay it off when i could just go bankrupt or wait for it to fall off.

Would CHMC approve the deal? I have the ability to pay and i had problems 5 years ago. I just need a break.
What do i do?

thanks
frustrated