The Dream - Susan's story
February 18, 2020 | Posted by: Harold Hagen
Susan had moved to Red Deer, Alberta three years ago with her two teenage children. Owning a home had been a long-time dream of hers, but since she had always been a renter, and her growing children were putting added pressure on her family budget, the dream of homeownership remained elusive.
The Problem: Credit, Bankrupt, No co-applicant, Rental lease
Susan had been struggling with debt issues for a very long time. Saddled with an unmanageable debt load from a previous marriage, Susan was forced to negotiate a consumer proposal. She would be required to maintain payments to her creditors and living expenses while raising her two children on a paltry salary of only $42,000 per year. To put that in perspective, the median after-tax income for Albertans was $70,200 in 2016. Once she was discharged from her consumer proposal, she was able to apply for and get new credit then slowly rebuild her credit history. She found an excellent job working for an oil services company, and soon celebrated by buying a new car. Little did she know at the time but the added debt of the new car payment along with her challenging credit history would make it difficult for her to qualify for mortgage financing anytime soon.
Then finally one day Susan threw caution to the wind. Although she had a great landlord, she was tired of paying rent each month, so called us to see if she could buy her own home. She confidently exclaimed, “I don’t think I have any hope of qualifying, but I thought if I never asked I’d never know”. A poor credit score, a recent discharge from a consumer proposal and new car purchase certainly did not paint a positive picture for her home purchasing prospects.
The Solution: Painting the Truth
We presented Susan’s application to our preferred lenders and backed it up by highlighting the hard work and dedication Susan had invested pulling herself out of her credit troubles. We also emphasized how deserving her family were for a new home of their own. We outlined her current predicament, how she was left by her ex-partner to pay the full debt from the marriage, and how she managed to continue paying her debt payments and manage her family needs with an income of only $42,000 per year. She had re-established her credit via a credit card, a new car loan and her excellent rental history. (I would know, I was her Landlord!)
The Result – Homeowner!
We secured a Variable Rate Mortgage for Susan from an A-lender with bi-weekly payments. In addition, we helped her negotiate with her landlord an early release from her rental lease (ie., me). Susan says it all seemed like a dream when she received the keys to her now home. The satisfaction of owning her own home far exceeded what she though it would feel like.
The next time you think a possibility doesn’t exist; give us a call. We help make dreams come true!