As we all know, the real estate business is always up, going and competitive. It may become over whelming with finding listing, showing houses, dealing with clients, and over all put someone else’s needs before yours. As a Realtor you want to provide your client with top customer service and immediate feedback. Realtors always go out of their way to help clients but, the one thing that is most frustrating is when you spend time and money on a client who can’t qualify for a loan. Here are three ways to determine whether your clients credit will qualify.
1. Foreclosure- the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.
This is a red flag because this shows the ability to pay on a mortgage, the banks frown upon this. That is a property you that you lost, that doesn't help you in any way and you’ll have to explain why you lost the property. The most lenient reason for banks are: loss of spouse, economy reasons, the company you worked for went down and/or business failed.
2. Bankruptcy- (of a person or organization) declared in law unable to pay outstanding debts.
Bankruptcy is when sign an act stating that you can no longer pay your bills. What the court does is hire an attorney to help you file or send out ceases and desist letters which legally keep collection companies from contacting you.
3. Judgment’s- A collection
This is when the collection companies take you to court, are awarded the case, and are allowed to be reported on your credit report and public report. The banks do not except any bank judgment’s. They must be paid, because in the state of Texas a judgment can be tied into Real Estate. Since judgment’s are tied into real estate, if you want to sale your home or refinance your home you will be forced to pay from your proceeds of your sale.
Why does this affect you? You just stated that you can not pay for your bills, that’s a major risk for banks. There are special limitations with bankruptcy. Depending on what kind bankruptcy you filed it will affect the amount of time you will have to wait before you purchase your next new home.
If your Client does not have any of these, your chances are greater than 50/50!
For more information about this subject and about loan questions please contact Frank Marta Texas Home Loan Specialist. Info@nuhomegroup.com or give us a call (713) 373-0345.
NuHome Group 713-373-0345
1445 North Loop West Suite 105 Houston, TX 77008
Frank Marta NMLS# 245813/835196
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