Refused Morgage Insurance although discharged from personal bankruptcy

December 9th, 2005 by Questions

In 1998 my wife and I obtained an absolute discharge. Since then we established our credit and the bankruptcy has been purged from our credit record.

We applied for a mortgage at a Bank. They approved it subject to the approval of CHMC/GENWORTH, the only two companies in Canada who insure residential morgages.
Genworth declined the insurance on the pretext that we have had real estate related bankruptcy. Then the Bank declined to approve our morgage. By the way the bankruptcy related to bad investment in a condo, which we rented.

We think this is unfair. Bankruptcy is not a life sentence. We already served 7 years of bad credit record.

Can someone help us with advice on how to appeal this decicion from Glenworth? Thanks.

sam and sandra

Questions

One Response to “Refused Morgage Insurance although discharged from personal bankruptcy”



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

This seems quite unusual as I have seen many people who have been able to successfully obtain financing and insurance on a property after filing for bankruptcy. The best thing to do is to discuss this issue with a mortgage broker. Often mortgage brokers are able to find contacts within these types of organizations who better understand the insolvency process and may be more sympathetic.

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