Real Estate

Locked: Want to purchase my first home - I have some uh.. unique problems

  • Last Updated:
  • May 9th, 2021 5:10 pm
[OP]
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Dec 7, 2009
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Want to purchase my first home - I have some uh.. unique problems

So, this one is a bit of a doozy. Where to begin... Let's do bullet points

- I've just declared bankruptcy. I have paid my trustee and I sign my discharge papers next week. I have $0 debt
- I have somewhere in the ballpark of $50,000 - $75,000 in cryptocurrency
- My girlfriend's parents said they would chip in around $30,000
- I am 'unemployed' on paper, but I spend my entire day researching and investing in crypto
- I have no idea how to do taxes on my gains, but let's assume for a moment that I'll figure that out later
- My girlfriend works as a server in a restaurant but only has 2 shifts/week doing takeout.
- We have no cosigners

I have questions..

Assuming I have between 70-100k for a home and live 2hrs outside of Toronto

- Will anyone talk to us?
- Should we just get a modular home around ~150k and start there?
- Is it worth talking to a private lender? Will they accept Bitcoin?
- Should I just reinvest crypto until I have enough to just purchase the house outright?

I need help. I'm completely new to this.
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35 replies
Deal Guru
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Sep 21, 2007
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ugh.. $75k is a little more than $50k.

Why do you want to buy a house?
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Deal Fanatic
Feb 4, 2010
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Syne wrote: So, this one is a bit of a doozy. Where to begin... Let's do bullet points

- I've just declared bankruptcy. I have paid my trustee and I sign my discharge papers next week. I have $0 debt
- I have somewhere in the ballpark of $50,000 - $75,000 in cryptocurrency
- My girlfriend's parents said they would chip in around $30,000
- I am 'unemployed' on paper, but I spend my entire day researching and investing in crypto
- I have no idea how to do taxes on my gains, but let's assume for a moment that I'll figure that out later
- My girlfriend works as a server in a restaurant but only has 2 shifts/week doing takeout.
- We have no cosigners

I have questions..

Assuming I have between 70-100k for a home and live 2hrs outside of Toronto

- Will anyone talk to us?
- Should we just get a modular home around ~150k and start there?
- Is it worth talking to a private lender? Will they accept Bitcoin?
- Should I just reinvest crypto until I have enough to just purchase the house outright?

I need help. I'm completely new to this.
Let's say you're able to somehow a get a mortgage and find a house within that limit. How will you and your girlfriend be able to pay for the utilities, mortgage, maintenance, etc. when neither of you are employed and have no money? What happens if you break up? Will her parents want their money back?

I realize that society tells us that home ownership is the ultimate sign of success, happiness and making it in the world but its' not. In your case it is an absolutely horrible idea right now - you don't want to get a private mortgage - the interest rates are horrible especially for someone like you (declared bankruptcy, no savings, little financial acumen). What is the job market like "2 hours outside of Toronto"?

I would focus on getting a job and/or skills, learning about and saving money and increasing your credit score. If you continue spending your "entire day researching and investing in crypto" I suspect you'll continue to find yourself in the same situation.
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Sep 23, 2011
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Vaughan
I checked my calendar and April 1 was over a month ago...
Deal Addict
Jul 22, 2009
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Brampton
So you screwed your creditors and now you want to borrow more money. Nice, indeed unique problems.
Last edited by kopokipi on May 8th, 2021 8:37 pm, edited 1 time in total.
Deal Addict
Nov 10, 2014
1141 posts
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Ottawa, ON
Can't tell if this is a sh*t post or not.

If it is for realz, why would you post on an internet forum basically declaring that you committed bankruptcy fraud? I guess bankruptcy fraud qualifies as another use case for crytpos...

" - I am 'unemployed' on paper, but I spend my entire day researching and investing in crypto"

Not only are you unemployed on paper, you are just unemployed. Consider getting a job if you want any form of credit extended to you.
[OP]
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Dec 7, 2009
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If I pay off half of my first home outright, would the equity in the home translate to collateral on the rest of the debt? Can someone speak to whether cryptocurrency might work as an alternate investment in a private lender's porfolio?

I actually work extremely hard and I'm paid very well for the work that I do. In fact, I've never a.) worked this hard -and- b.) earned this much - in my entire life. I'm not sure why people seem derisive about my choice of employment.

I'd like some more mature answers. The bankruptcy was to discharge student debt. I did not have any parental help through university.
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Dec 4, 2009
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Syne wrote: If I pay off half of my first home outright, would the equity in the home translate to collateral on the rest of the debt? Can someone speak to whether cryptocurrency might work as an alternate investment in a private lender's porfolio?

I actually work extremely hard and I'm paid very well for the work that I do. In fact, I've never a.) worked this hard -and- b.) earned this much - in my entire life. I'm not sure why people seem derisive about my choice of employment.

I'd like some more mature answers. The bankruptcy was to discharge student debt. I did not have any parental help through university.
Because "bankruptcy" isn't owning $50-75k in crypto, that's fraud.

You are a fraudster, and there's a reason people in your position pay usurious rates.
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[OP]
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Toukolou wrote: Because "bankruptcy" isn't owning $50-75k in crypto, that's fraud.

You are a fraudster, and there's a reason people in your position pay usurious rates.
These two things are entirely unrelated. I declared bankruptcy last year, prior to these earnings. You seem upset. If you can't help me, maybe you should just move along.

I'm not just going to stop working because I've declared bankruptcy. This is my full-time job. The liquidity problems are unique to cryptocurrency (for now) but you seem hung up on things entirely unrelated to my questions.

- I have money
- I want to purchase a home
- I have issues that might complicate the home purchase
- Can you help me?
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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Mar 5, 2006
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Murica
Seems like OP just pulled a play from Donald Trump playbook and screw creditors and hide assets thru crypto currency.

You plan on renting or buy a home?

You do realize mortgage applications require credit score, down payment, income to prove cash flow and employment to prove source of income.

So figure that out and decide.

As you don’t indicate location, tell us which location?

I’d suggest Windsor as homes can be had for as low as $200k.
Deal Addict
Mar 27, 2015
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Thornhill, ON
Based on what you've told us, neither you or your girlfriend are in a financial position to buy anything at this point (except a tent, no offence). Focusing on getting some work experience and some savings behind you should be your first priority right now.
[OP]
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I hesitate to disclose location, only because people seem to have weird motivations sometimes - but I appreciate the suggestion.

I may have to purchase the home outright - but I was hoping if I put enough equity into it, I could use that equity as leverage for a (low risk) loan. As far as I can tell, this sort of thing does exist, but perhaps RFDers simply aren't knowledgeable in this area.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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[OP]
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icantfigureoutausername wrote: Based on what you've told us, neither you or your girlfriend are in a financial position to buy anything at this point (except a tent, no offence). Focusing on getting some work experience and some savings behind you should be your first priority right now.
- I have lots of savings (75-100k)
- I have lots of work experience. My current job is my choice. I love what I do, and I'm good at it.
- I'm paying rent anyways, so if I can pay a low mortgage, this wouldn't further stress my current financial situation.
- On top of this, my girlfriend and I currently live apart, so consolidating our living situation would actually save us quite a bit of money per month.

If you're asking, can we afford this? Absolutely. If it was 10 years ago, I could afford to simply purchase a starter home outright. Any more weird and useless responses?
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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Getting a mortgage is typically based on a standard yet specific scenario, you have a conventional job with stable earnings presumably for years.

You are qualified by the bank verifying your employment and likely recent employment history, your credit rating and if eligible you can be qualified for a mortgage up to 5(?)x your income. And you can shop for interest rates which will be based on your credit rating which is why you want a good credit rating. I believe it goes back up to 7 years.

If you don't fall under this then your most likely not going to be able to get a conventional mortgage. Even if you were a trust fund kid you would have lots of trouble getting a mortgage becasue your outside the standard system

Not to say its impossible but your situation is not stable and its extremely unconventional. You may be able to get a mortgage but the interest rate is likely going to be through the roof and you would likely need a cosigner. I don't personally recommend it in your situation but you can look into it and hope that with a year old bankruptcy plus your unstable income someone is willing to take a chance. I doubt a big bank will, mortgages with third rate lenders are risky and loan sharks/organized crime puts your life in danger and their interest rates can be deadly in more ways than one.
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[OP]
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Quentin5 wrote: Getting a mortgage is typically based on a standard yet specific scenario, you have a conventional job with stable earnings presumably for years.

You are qualified by the bank verifying your employment and likely recent employment history, your credit rating and if eligible you can be qualified for a mortgage up to 5(?)x your income. And you can shop for interest rates which will be based on your credit rating which is why you want a good credit rating. I believe it goes back up to 7 years.

If you don't fall under this then your most likely not going to be able to get a conventional mortgage. Even if you were a trust fund kid you would have lots of trouble getting a mortgage becasue your outside the standard system

Not to say its impossible but your situation is not stable and its extremely unconventional. You may be able to get a mortgage but the interest rate is likely going to be through the roof and you would likely need a cosigner. I don't personally recommend it in your situation but you can look into it and hope that with a year old bankruptcy plus your unstable income someone is willing to take a chance. I doubt a big bank will, mortgages with third rate lenders are risky and loan sharks/organized crime puts your life in danger and their interest rates can be deadly in more ways than one.
Thanks. I appreciate the reply. Do you have any thoughts on whether home equity is considered collateral to lenders?
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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I have a feeling that as soon as they see "bankruptcy" beside your name, you'll have a tough time getting any reasonable loans, if any. Good luck, OP.
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Syne wrote: Thanks. I appreciate the reply. Do you have any thoughts on whether home equity is considered collateral to lenders?
Not really, thanks to that standard mortgage scenario the delinquency rate in Canada is very low so to a lender they don't worry that they can't get their money back if a house is foreclosed on, they just want to give you the mortgage, get their capital money from the CMHC and collect your interest.
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Jan 13, 2021
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Syne wrote: - I have money
No you don't. You have crypto currencies. Banks want to see all that money in a savings/chequing account in Canadian dollars. Many of them will consider US dollars as well.
Syne wrote: - I want to purchase a home
You don't have the means to do so.
Syne wrote: - I have issues that might complicate the home purchase
Yes like having no money or income
Syne wrote: - Can you help me?
Yes:
1. Convert your holdings into Canadian dollars to find out how much you "really" have for a down payment
2. Find a job that pays at least $80K and hold it for at least 2 years before thinking about buying a home.
Last edited by synthetic1 on May 8th, 2021 10:28 pm, edited 1 time in total.
[OP]
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Quentin5 wrote: Not really, thanks to that standard mortgage scenario the delinquency rate in Canada is very low so to a lender they don't worry that they can't get their money back if a house is foreclosed on, they just want to give you the mortgage, get their capital money from the CMHC and collect your interest.
Sounds about as spicy as white people cuisine.
In a perfect system, corporations would fear the government and the government would fear the people. - David Wong

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