Request: 67% LTV refinance to payout current 1st and 2nd mortgage plus property taxes arrears. 2nd mortgage was in foreclosure. Client was also hoping for some extra funds to inject into business.

Challenge:

• 2nd mortgage being in foreclosure and property tax arrears.
• A stand-alone non flag restaurant with restricted use provides marketability issues.
• Property is completely surrounded by Auto Mechanic shops.
• Restaurants are hard to find financing for due to high failure rate.
• Condition of the property was below average.
• Property under holding company name.
• Expensive commercial appraisal and Phase 1 environmental report required.
• 67% LTV is considered quite high for this type of property.
• Bruised credit with numerous late payments, 1 paid collection and 2 R9’s.

Results:

• Deal was referred to Plan B on October 24th. DLC Agent wanted to remain involved and the point of contact for the client. True team effort between Plan B and DLC agent.
• Deal was shopped to many lenders, all declined due to property type coupled with foreclosure.
• Letter of Interest was obtained on Nov 15th, subject to a commercial report and Phase 1 environmental. Appraisal surprisingly came in a little higher dropping LTV to 61%.
• Approval yielded enough funds to fully pay 1st, 2nd, property tax, and still provide about $70k to inject into business.
• The final consolidation allowed for new cash out for the client AND reduce monthly payments by approx. $700/mnth which improved business cash flow
• DLC agent did a great job handling a clearly distressed client who very nearly lost his restaurant and livelihood.
• Referring DLC agent to receive $7,000.00 commission check and a loyal happy client for life

Request: Applicants recently took out a truck loan with large payments causing other trades to fall into major arrears (R5). Application was seeking consolidation of all consumer debts to lower total monthly payments, prevent collections and prevent existing 1st mortgage to be called.

Challenge:

• 75% 2nd mortgage was required to fully meet objective in a very challenging lending area due to small population of approx. 13,000 and in a province with very limited B lenders
• Subject house was located directly across the street from a cemetery causing marketing concerns with lenders
• Beacons very low
• Approx. $36,000 of credit card debt all showing derogatory payment history both prior and present…ranging from R3 to R5
• Much of the active debts in arrears are from the same lender as the existing 1st mortgage (Scotia). To ensure bank will offer renewal on the 1st come maturity, the credit card and personal loan accounts were required to be paid out so relationship with 1st mortgage lender is not tarnished
• 2012 tax return not processed yet so no NOA available but prepared T1 generals show that CRA will be owed a balance

Results:

• Mortgage agent referred deal to Plan B on a Monday morning
• Private lender was sourced out the very same day by with an expression of interest in doing the deal subject to appraisal and providing rough quote
• Best suited appraiser was sourced out and ordered right away to confirm equity
• Appraisal came in 22k lighter than expected but existing 1st mortgage also came in 5k lower
• Approval was officially granted for a 2nd mortgage of 75.50% LTV with condition to pay all debts from proceeds
• It was determined there was not enough funds to satisfy all debts paid in full so Plan B negotiated with lender to allow all debts paid off but to leave one Visa with balance so clients not short at closing
• Referring agent elected to remain involved in the approval process and was a huge asset in facilitating the transaction. The agent even offered to front the lawyers $500 deposit in order to keep file moving along quickly
• A true team effort by the client, the referring agent, Plan B and the mortgage lender
• Clients obtained the required consolidation while maintaining a positive relationship with 1st mortgage lender
• Approval terms finalized at 15.99% rate (lower than debts being consol’ed) with 7.50% lender fee. Approval terms on par for the lending location and credit situation
• Referring agent to receive 260bps commission from funded transaction

Request: Consumer had an existing 2nd mortgage where the lender was not able to offer a renewal. Mortgage had to be paid out. Further consolidation of debts, derog credit and judgement required to greatly improve monthly cash flow.

Challenge:

• Applicants had large personal judgements on credit along with large balance credit card R9’s
• Respective beacons 584 and 573, judgements of 15k, 10k and 45K!
• R9 balances of 19k, 20k, 11k and 18K!
• Stated income on one applicant
• Not sufficient equity in primary residence in Vancouver BC
• Required lender that had ability to blanket 2nd home in Point Roberts USA
• USA property had no active fire insurance in place
• No local appraisers available for USA property location
• Personal credit reports were loaded with major derogatory balances

Results:

• Agent discussed deal with Plan B at local industry trade show / networking event
• Application was submitted to Plan B and game plan was discussed with agent in great length
• Approval was quickly sourced out via one of Plan B’s exclusive lending relationships
• Appraisal was obtained for British Columbia property
• DLC agent remained closely involved in the fulfillment and execution of approval
• USA appraiser was eventually sourced out and obtained
• Final LTV was an 86% LTV 2nd on British Columbia with a blanket over the USA property reducing total LTV to 61% LTV
• Total debt load was analysed and discussed in great length with applicant and agent to determine what needed to be paid in full, what could be settled for lower amount and what could be left alone due to near approaching Statutory of Limitations
• Negotiated with lender to advance funds to applicant directly and NOT condition to direct funds directly to creditors for better control and negotiations of debt settlement
• Fire insurance was obtained on USA property
• Escrow lawyer in USA worked in conjunction with lawyers (clients and lenders) in British Columbia
• Deal funded without issue, all goals accomplished under acceptable and affordable terms to the consumer
• Mortgage agent maintained strong loyal repeat business relationship with consumers
• Final terms very attractive at 7.99% rate with 1.7% lender fee
• Agent shared the total commission with 100bps going to brokerage and agent

Request: Foreign investor who lives and owns an international trucking business in Mexico has a rental house in British Columbia that is vacant. Applicant was looking for a 2nd mortgage on his Canadian rental house to raise some capital to invest into his Mexican trucking business.

Challenge:

• Applicant is a non-resident with non-verified income from a foreign country
• House is vacant and located on a busy artery street
• Reject beacon score
• No Canadian credit or SIN
• Signing of mortgage documents would have to be remote in Mexico
• Selection of lenders able to do this type of non-resident

Results:

• Mortgage agent attempted to locate lender. Found only one but far too low of LTV
• Agent sent deal to Plan B for opinion of better approvals were available
• 5 days later Plan B sourced out 3 approvals with one being ideal for the request
• No broker conditions as lender accepted appraisal original agent obtained 2 months prior
• Client was allowed to sign with his own choice of lawyer back in home country Mexico
• Approval terms 75% LTV 2nd mortgage, 13% rate, 3.75% lender fee
• Client very pleased with the approval and level of service by the original agent and his B team
• Agent to receive 187bps commission on the deal

Request: Applicant owned primary residence and 2 rental properties. One of the rental properties fell into arrears and foreclosure proceedings were started. Request submitted to refinance the existing 1st mortgage AND some extra funds to further consolidate some other consumer debt.

Challenge:

• Purpose of the request is ALWAYS a challenge
• Additional cash out on top of the existing mortgage balance is rarely approved
• Stated income for main application where it was this income that caused the arrears
• Beacon for main application 552 with recent major derog credit and collections
• Subject property being an average rental duplex

Results:

• Agent submitted the deal to Plan B on a Thursday
• Plan B reviewed the situation to ensure the cause of the arrears had a cure in place. Plan B wont take on a foreclosure file until they are satisfied of what the cause and cure is
• Plan B accepted the file for processing the next day Friday
• Numerous lenders were approached for approval without success. 10 days of diligent shopping finally yielded an approval
• Plan B identified more security and income was required on the application to yield the best approval so a daughter was added to the application, a 2nd rental and the applicants primary residence was added to the blanket mortgage application for a 3 way interalia
• New mortgage was approved with an addition $90,000 of cash out to cover closing costs and consolidate more consumer debt
• The final mortgage was a 1st on the foreclosure property and 2nd over the other 2 properties
• Final LTV was 70% LTV
• Approval terms were very acceptable to the consumer and referring agent as payment fit into the budget and CURE plan
• Approved 1yr term @ 9.25% rate with 2% lender fee on a 30 year amortisation
• Referring agent received 100bps and a loyal happy client for life

Request: Client sold house to buy new dwelling where the existing credit union mortgage lender had an approval in place for the new purchase. Once approval was granted and existing house sold, client simply stopped paying all liabilities as they would eventually be paid from sale of existing. 5 trade lines went into r3 status or worse causing credit union to pull approval on a subject removed purchase contract. Client needed mortgage financing locked down in less than 2 weeks.

Challenge:

• Location of property was rural with population of approx. only 1,000
• Over $75,000 of consumer debt with many actively in major derog status
• Beacons 520 and 504

Results:

• Mortgage agent referred the deal to Plan B on a rush basis to find approval and fund
• Plan B submitted application to 16 lenders. 3 approvals were located all from the private sector
• Best approval was accepted and presented to client with focus on affordability
• Plan B did not want the mortgage accepted out of desperation to ensure no arrears potential
• Client assured the approval fit the house budget.
• Income was verified and gds/tds were at acceptable levels PLUS the new payment was lower than mortgage payment on house just sold
• Mortgage funded on time. Client avoided legal action for breach of contract and loss of contract deposit
• Very relieved consumer and mortgage agent
• Approval was 70% LTV, 8.99 rate with 1.50% lender fee
• Referring agent solidified relationship with referring real estate agent
• Referring agent received accolades for getting the deal done
• Referring agent received 100bps commission

Request: Basic equity take out request for the purpose of generating capital for an undisclosed investment transaction. Leave the existing 1st and 2nd mortgage in place with big name bank and finance a 3rd mortgage private transaction.

Challenge:

• Location of property was in a non-conforming area. Big valued homes in lending area where these big ticket items are not marketable causing very limited lender options
• Subdivision was built by developer who went into receivership causing some marred results from lenders
• Mortgage request not being directed but rather all going into clients pocket (over 150K)
• Stated income to service large mortgage and consumer debt payments
• No consumer debt to be paid off
• Small 3rd mortgage request in relation to what was in front of this mortgage (going behind large mortgages limits lenders as lender would need to be able to take out the previous placed mortgages in the event of foreclosure)
• Referring agent already shopped the application to 25 private lenders so file has been around the block and seen by all

Results:

• DLC agent referred application to Plan B on a Monday and approval was sourced out by Plan B on that Friday
• Referring DLC agent was working on file prior to Plan B for approx. 1 month shopping to 25 private lenders
• Plan B commenced to communicate direct with the consumer as a member of the DLC agents team
• Approval with only TWO lender conditions: appraisal and personal net worth statement
• Consumer was approved for his ETO as requested without being directed by lawyers
• Consumer was pleased with the approval terms, solution and payment size
• 12% rate for 3rd mortgage with 2% lender fee
• Referring DLC agent received accolades from consumer along with 137bps commission check

Request: Refinance owner occupied house for ETO to pay off 3 years of property tax arrears to stop property tax sale notice. Medical service plan judgement registered on title also required to be paid out during the refinance along with over 40K of consumer debt, most being in R9 status.

Challenge:

• Property located in small bedroom community on a 5 acre parcel located within the ALR
• House was very original and dated with evidence of asbestos and knob & tube
• All consumer debt riddled with major derogatory history, 5 of 6 trades show R9
• 8K judgement on title placed by government medical service plan for unpaid invoice
• 3 years of property tax unpaid with house being slotted for property tax sale
• Required LTV exceeded the approvable norm

Results:

• DLC agent referred to Plan B where an approval was sourced out the next business day
• Appraisal was ordered from lenders preferred list of appraisers
• Appraised value came in low driving LTV above the original approved LTV
• House condition and its contents resulted in original approval being declined
• New lender and approval was required and successfully sourced out to 78% LTV
• Same 2nd mortgage rate was obtained as was on the original lower LTV approval
• All consumer debt was paid, property tax paid in full to stop tax sale and title was cleared of judgement
• 2nd approved @ 12% rate with 4% lender fee
• This solution fit in the clients household budget
• Referring agent to receive 200bps

Request: reduce monthly payments, pay 3 years of property tax arrears, consolidate existing private mortgage lender who will not renew due to property tax arrears and reduce credit counselling balance as much as possible. Owner Occupied SFD refinance on verified income

Challenge:

• property tax have not been paid in 3 years which was nearing tax sale of property,
• extremely low beacons,
• actively still in a credit counselling program with $85,000 still owing,
• existing mortgage lender not willing to renew,
• income verified but TDS close to 50% even after adding children to the application.
• required LTV

Results:

• DLC agent referred application to Plan B mid July 2013
• Approval was a challenge to locate given the multiple BIG challenges
• Approval was located in 4 business days but file was continuously worked in efforts to find better solution for the client
• Plan B determined they originally had the best approval available for this file so proceeded as approved
• File was carefully worked on with the referring agent who elected to remain in contact with the client throughout the approval process….numbers were very tight so much consideration and planning was involved
• File funded in early September 2013 with a solution that met all the goals in the request AND reduced overall monthly payments by $600 per month
• Credit counselling balance was paid down to $12,000 balance which remained in program
• Funded approval via a 2nd mortgage for $195,000 @ 12% rate with 2.50% lender fee at 82% LTV
• Clients very pleased with the results and impressed with the skill and services of the referring broker
• Agent received happy client for life and commission of 103bps

Request: Applicant looking to purchase dwelling in Edmonton for under $200,000 based on available gifted down payment. Client is BFS requiring stating income approval without being able to show a recent NOA.

Challenge:

• Stated income for BFS driver where no personal tax returns have been filed since 2010
• Down payment is gifted from various sources and donors
• No active credit on his personal credit report since 2010
• Dwelling was 1967 town house with purchase price well under 200K
• Required LTV nearing high ratio status

Results:

• DLC agent referred deal to Plan B on a July Monday
• 80% approval was located in 2 days but conditioned recent NOA which could not be fulfilled
• Application was shopped to various lenders in order to find approval within budget with conditions to be filled
• Subject removal extension granted
• New approval located and presented to client the day before the new subject date
• Subjects removed on time without actually fulfilling all conditions but were confident all could be obtained
• Typical B client behaviour with very slow response time and lack of urgency…still collecting conditions up to the day of funding!
• Purchase funded on time
• Client very pleased with the approval terms as well within budget and available down payment
• Final funded approval was 77% LTV, 4.39% rate, 1% lender fee
• A private 2nd mortgage approval was obtained to 85% in case client could not produce the required down payment which he was so this 2nd mortgage approval was not required
• DLC agent did very little in the process and will be making a 127bps commission