It goes without saying that, if your current mortgage is in arrears, it will be virtually impossible for a new lender to mitigate the potential risk of giving you a new mortgage.  People think that they can deceive the lenders and perhaps if they don’t say anything, the bank or lender won’t find out that they are behind on their payments.  Well, this doesn’t happen anymore after the 2008 Financial Crisis.

In 2012 all lenders in the USA began sharing information across all lending platforms.  Once your credit bureau file is electronically pulled using your social security number, it instantly becomes apparent that you have in credit, along with a full history of your past repayment habits and job history.

Gone are the days of sweeping it under the rug and borrowing more to get creditors off your back.  Today it is a totally different lending landscape across America (and Canada).  The use of new mandated government guidelines continues to force banks and lenders to tighten lending requirements.

Christine’s Tip:

It always surprises me when clients fail to understand why they are being turned down for a loan or mortgage when they are behind on their payments.  Think about it:  if you planned to lend $200,000 of your own money to your neighbor who had a history of never paying on time or who had other loans with you that he never paid off, would you give him more money?

Probably not!