Let’s work together, using our Family First Strategy, and help you more easily achieve home ownership and stop renting. Together we will design a solution suited to your particular circumstances.
Hamilton Rent to Own: Case Study
In late 2014, a family with very bleak housing prospects was referred to us. They lived in their own beautiful home, which they had purchased new, in an up-scale part of Hamilton. Financial circumstances had led them to get a second mortgage on their home. They had fallen behind on their payments, and the lenders were starting Power of Sale proceedings – they were facing eviction.
Their credit situation was such that, even after many attempts, conventional lenders would neither extend their existing mortgage, nor negotiate a new one. They were referred to us in the hope that we might be able to find a solution allowing them to remain in their home and avoid having to move.
The couple had excellent employment stability and above average family income. Additionally, over the years, they had built up sufficient equity between what was owed on the home and its professionally appraised value that a potential solution could be devised, without having them put out any more cash.
In order to remain in their Hamilton home, the family needed help to:
• Pay off the existing mortgages to eliminate Power of Sale action
• Reduce their expenses so as to cover their housing costs and living expenses
• Improve their badly bruised credit so that, in time, they could again qualify for conventional mortgage financing
On several occasions, members of our team met with the family to design a solution meeting their ability to qualify for our program. Two of the points that were heavily stressed included the need to reduce expenses and to take definite steps to improve their credit score.
While both adult members of this family were mature professionals, at no time had anyone ever explained to them how good credit could be built, or how easily it could be destroyed – this formed part of the guidance provided.
The good news:
1. The family is still in their same home in Hamilton; their children are still in the same schools with their friends
2. They are working diligently on changing their spending habits
3. Their credit score is slowly trending in the right direction
4. There have been a couple of hiccups, but providing the family maintains improved financial habits, in about three years, they should qualify for their own mortgage and regain title to their property
This is another situation where circumstances require a solution designed to address the issues – it was not about a family trying to getting away from rentals but being unable to qualify for a purchase on their own.
Should you or any of your Hamilton acquaintances be facing similar issues, call us and we will do our best to tailor a solution that works!