How Karen Pacheco Helped A Defaulting Client Keep Their Home

Helping clients understand how much mortgage they can handle and which options suit them best is challenging especially if they have poor credit scores and a bad history when it comes to borrowing. However, the biggest challenge for a mortgage broker is when a client approaches them with a refinancing request after defaulting on a payment to their mortgage lender.

As a professional mortgage agent, I feel that it is my duty to navigate skillfully through a sticky situation, so my clients’ sufferance is subdued immediately. I’ve worked in the home industry for years, and it showed me that I have a knack for solving home buyer problems. I love working with people, and I find absolute bliss in resolving their mortgage troubles.

Recently a client approached me to refinance their mortgage after failing to pay a few monthly installments in a row and accumulating severe debt.

Keep reading to learn how Karen Pacheco helped prevent them from losing their home.

The Challenge: Inability to refinance due to financial constraints from existing debt.

When the client first came to me, they had already been tormented and turned away by their bank for a refinance on their existing home. Life struggles that they were going through put them into a situation where they were beyond their financial limits on their existing debt. They were struggling each month to make the minimum payments and were not getting anywhere near reducing their debts. A refinance was their only option other than selling their existing home.

Time was running out because after pulling their credit bureaus, I noted that they had a creditor that was about to go to collections which is why their main mortgage lender would not approve a refinance. This creditor had set the client up on a payment plan with a very high interest rate which the client wanted to be able to pay out. The previous lender found that there was not enough equity to pay out all of the debts required.

The Solution: Reworking the mortgage file and connecting with the right lenders.

After listening to the client’s troubles, I quickly got to work. I reviewed their file and shortlisted a couple of lenders who would be interested in catering to the client in spite of their debt troubles. I began applying to these lenders for the mortgage refinance.

I also looked into the value of their home. I was able to increase its value from the city’s assessment by doing an appraisal which increased their equity. With the new appraisal, we had enough equity to complete the file for refinancing.

I see many client applications that are turned down by some of the bigger lenders as they all have strict policies in place. However, a broker can review the items in your file and fit them with a variety of lenders that will look at explanations on past credit to make the file work. Even if I cannot get an application approved, I will set the client up with a game plan to improve their finances and credit score, so they see approval in the near future.

For this particular client, I had their file approved within five days from meeting them for the first time. In the end, the client was able to pay out all of their revolving debt including the one that was about to go to collections. They were also able to pay out their remaining car loan. I set them up with a lender for their refinance that covered all of the costs for the refinance and they obtained a rate that gave them a lower mortgage payment then they were paying before the refinance.

The Bottom Line

As the best professional mortgage broker in Edmonton, Alberta, I assure you a great mortgage experience throughout your mortgage years. Open communication is part of my services so you can expect regular updates from me. I have helped numerous clients with their financial goals towards first time purchasing, real estate investing, vacation property, and debt consolidation, and I look forward to assisting you too.

To get started, get in touch with me Karen Pacheco by clicking here. To learn more about how I can help you, please click here. Or, to read what my clients are saying about me, please click here.