Applying for a mortgage and gaining approval serves as a guarantee you'll receive the funds upfront to move forward with a real estate transaction. If only life offered the same assurances.
Unfortunately it doesn't, as millions of Americans can certainly attest. From medical bills to money management problems, home repair expenses to unexpected job losses, a series of unfortunate events can lead to financial hardships, resulting in bankruptcy, short sales, delinquency and foreclosure. These issues can make it extremely difficult to borrow money, as the adverse effects can hurt your credit score.
We believe everyone deserves a second chance, which they may be able to find through SmartTrac.
What is Smart Trac?
Part of our Smart Series of mortgages - including SmartVest, SmartEdge and SmartSelf - SmartTrac is geared specifically for people whose credit has been damaged by financial circumstances, such as bankruptcy, delinquency and other issues involving negative credit events.
During the Great Recession, when the economy badly sputtered and job losses led to unemployment rates of 10 percent, mortgage delinquency rates were elevated in just about every state. Nearly a decade removed from the downturn, employment and wealth conditions have dramatically improved, with early-stage delinquencies accounting for 1.8 percent of all mortgaged properties in April, according to CoreLogic. That's down from 2.2 percent of borrowers who were late in their mortgage payments a year ago. Late-stage delinquencies have also tailed off, accounting for just 1.9 percent of mortgaged properties in April.
Residential real estate experts attribute the improvement to the economy improving, evidenced by home-price appreciation, equity gains and robust job growth. Employers have increased the size of their payrolls by over 3 million since the fourth quarter of 2016.
Weather hazards can lead to mortgage woes
The economy doesn't feel like it's booming for those dealing with negative credit events, the kind that can develop from circumstances beyond their control. For example, 2017 was a tough year for coastal residents whose properties were hit by hurricanes, as the Atlantic Ocean produced several named storms that reached Category 4 capacity, reaching wind speeds of more than 155 miles per hour. CoreLogic found the states hit hardest by hurricane activity in 2017 were the only ones where serious delinquency rates substantially rose in April, more than double what they were in 2016, a year when tropical storm activity was far less frequent.
It's not a coincidence that borrowers from these states were late on their payments, tasked with coming up with the necessary expenses to pay for repairs caused by Mother Nature's wrath.
This is just one example of what makes SmartTrac special. Being late with mortgage payments can affect adversely affect your credit, but with us, you may be eligible for a second chance loan, even if your credit score is less than sterling.
To learn more about SmartTrac and if you're financial situation renders you eligible, get in touch with us today.