Bad Credit Mortgage real life case studies

We have provided some real life case studies below of how we have managed to help our clients obtain funding which has helped them achieve their goals.


You can read the case study below about Melanie and Peter or select any of the case studies listed below that will take you to another page.

Mr C Tran

Melanie and Peter - Refinance 80%, Purchase 85%

Melanie and Peter's Story.

Melanie and Peter are hard working Aussies, raising a young family in the far west of Australia, however due to an unexpected health matter and urgent operation in 2010, they fell into spiralling debt. A debt agreement was the only solution to avoid eventual bankruptcy and loosing their first home.

By July 2014, Mel and Pete were close to paying out a Part IV debt agreement in full. So they decided to contact a large and well known Mortgage Brokering firm to get them approved so they can purchase their next investment property. After analysis by the lending officer, they were turned away. They could not help.

After much frustration, Mel came across The Finance Group Parramatta who service clients across the whole country and have a philosophy that "Every client matters" and who believe that there is a solution to fund every clients lending requirement where there is a logical / documented method to service the debt and a suitable deposit is available.

Since Mel was previously turned away by a large and reputable mortgage broking company and the fact that The Finance Group Parramatta is based on the other side of the country, Mel was sceptical at first when the mortgage advisor at The Finance Group Parramatta said he is more than likely able to put together a solution. So, Mel first visited the MFAA website to make sure The Finance Group Parramatta are MFAA members, have an Australian Credit Licence and have a Senior Credit Advisor on staff. The Finance Group Parramatta checked out OK, so Mel proceeded forward.


Steps 1) to 5) below refer to The Finance Group Parramatta 5 Step mortgage approval process.


These Simple 5 Steps to get your Home Loan approved

1.      You submit the required information to us.
2.      We analyse your credit history and other documents.
3.      We formulate a Solution using our 28+ bad credit lenders (Non Bank and Private lenders).
4.      Provide you with a written Credit Quote and Loan proposal for you to consider.
5.      Lodge application on your behalf to obtain formal approval.

Mel and Pete proceeded with Step 1).

After providing some initial documents, During the“Pre-assessment” (Step 2), some further credit issues were discovered.  Mel still had an unpaid debt that she did not know about and had assumed it was included in of the Part IV debt agreement that was entered into during 2010.

 

One of the mortgage specialists at the finance group advised Mel how to handle the situation so that Mel and Pete would still be eligible with the proposed lender.

The final outcome was, the Finance Group Parramatta arrange the following approvals;

 

1) Approval for Refinance of existing property to 80% of the property value with a Bad Credit Mortgage and release some equity to use as the deposit for the new home.  Interest rate after negotiating with lender was 6.50%, Interest only for 5 Years. (Remember there was an unpaid default on Mel's credit file of almost $10,000.

 

2) Approval for 85% Bad Credit Loan to fund 85% of the purchase price of the new Investment property.  Interest rateof 7.06%, Interest only for 5 Years.  (The Finance Group Parramatta lenders can lend up to 90% of the purchase price for Bad Credit clients, depending on the property location, value, land size and the level of credit impairment).

 

Some of the Challenges and solutions/advice provided byThe Finance Group Parramatta

 

Challenge 1) The Part IV debt agreement taken out in 2010 was not discharged on the date of the initial enquiry with The finance group Parramatta.

 

Solution: 1) Wait a couple ofweeks until the part IV debt agreement is discharged and the release papers provided by ITSA and the debt management company, then you will get a better interest rate once you are considered a ">1 Day discharged bankrupt"

 

Challenge 2) An Unpaid default was still present on Melanie's credit file at the time of enquiry which Melanie was not aware of and thought that debt was part of the debt agreement.

 

Solution 2): Negotiate a payment arrangement on the unpaid default of a low weekly amount to ensure that the payments on the debt agreement don't affect the serviceability / affordability on the new loans.  The new lender will factor in this regular weekly costs in their affordability calculations, therefore it's important that this amount is negotiated to be a very low weekly amount, so you can afford the payments without any stress or hardship.

 

3) The property being purchased is in a suburb with low population, making the property undesirable location and higher risk for most lenders to fund (less than 1,000 residents)

 

Solution 3):  Since The Finance Group Parramatta have at least 8 lenders who lend money to clients withbad credit history and over 20 non bank institutions who fund bad credit loans,this includes various Mortgage funds and private lenders, The Finance Group Parramatta has Complete Solutions in Finance and can virtually get any worthy borrower money where the deal makes sense.

 

4) The existing home they owned, just had been maliciously damaged by previous tenant and had no rental income

 

Solution 4): While sorting out issues 1) and 2), Mel arranged for repairs to be completed and a new tenant to be arranged.  Mel also arranged a letter from the property manager,  estimating the rental income achievable for the property so that the loan approval can take place while awaiting the tenant to move in and the first rental income statement to be obtained from the managing agent.

 

5) The property being purchased is over 5 Acres and in a remote area;

 

Solution 5):  The Finance Group Parramatta have a large lending panel and good relationship with their lenders, despite the policy only allowing acreage up to 5 acres on the chosen product.  The Finance Group Parramatta were able to get an exception to the policy on this occasion.

 

The Finance Group Parramatta have "Complete Solutions in Finance" and "Every client matters".

Call us today on 1800 88 LOAN to speak directly to a Credit Advisor 7 days a week from 8am to 10pm   (24x7 for urgent situations).

 

We are always looking to conquer the next challenge, so don't think your case is too hard, call us today so we can confirm or not if we can help give you a second chance.

 

P.S.  For Good creditclients, our rates start at 4.51% p.a. for Variable and 4.59% for 3 Year fixed rate.

 

If you know anyone looking to refinance or purchase a property, please email us their email address, name and their mobile number also and if they proceed with a loan, we will pay for your Valuation and credit checks on your loan (up to $1,000 Value) at our cost.

 

Call 1800 88 Loan or 1800 88 5626 to tell us your story.

Or you can submit a quick online query on the right hand side of this webpage.

We will let you know how we can improve your situation.