Failing Consumer Proposal And Job Loss Due To COVID-19
Successful Rebound
A homeowner was hit by COVID-19 and unfortunately lost his employment. Meanwhile, he has an ongoing Consumer Proposal to pay off while he tries to recover his health.
The client was able to find new employment but the job is paying less than what he earned previously. He needed a solution to pay off the Consumer Proposal with a lower debt services amount that he can afford with his new employment.
Challenges |
|
Location |
Calgary, Alberta |
Property value |
$357,000 |
Mortgage |
$45,000 |
LTV |
83% |
Solution |
The client was able to secure a second mortgage to pay off the Consumer Proposal debt at a lower interest rate that is more affordable with the new employment income. |
Exit strategy |
Refinance in 12 months when the client’s beacon score has improved. |
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