The title of the radio show was What Can You Do If You Own a Home and Have Money Problems, and Theresa made a number of good points on the show.
She commented that if you have a lot of high interest rate debt, like credit cards, but you also own a home that is worth more than is owing on the mortgage, it may be possible to borrow against the value of your home to reduce your monthly payments. This makes sense, because mortgage rates are a lot less than the 18% to 25% you might be paying on credit cards. Refinancing is obviously a better alternative than going bankrupt, which is why if you own a home with substantial equity we always suggest considering the re-financing option.
She also mentioned that it is possible to get a mortgage very soon after you have been discharged from personal bankruptcy, provided you have at least a 10% down payment (more is better) and a good source of income. That's good news for people who want to rebuild their credit as soon as possible.
She even discussed the possibility of re-financing a mortgage as part of a consumer proposal. There are a number of conditions that must be met, so a consultation with Theresa is necessary to see if you qualify.
We closed the show by commenting that there are many different solutions to financial problems. A consumer proposal or a personal bankruptcy may be a solution, but if you own your own home re-financing your mortgage may also be a step towards solving your financial problems.
For more information, you can e-mail Hoyes Michalos, or you can contact Theresa directly at www.mortgageintelligence.ca/theresayates.
posted by J. Douglas Hoyes, CA, Trustee @ 5:42 PM
0 Comments:
Post a Comment
<< Kitchener Ontario Personal Bankruptcy Blog