The first reason for refusal is the file already presented but having been the subject of a refusal. What with the small number of lenders in tenant debt consolidation is the most common reason.
Insufficient income of the borrower
Before giving a positive response to the request, the bank studies the financial resources of the borrower. To hope to obtain an agreement of the request, one of the subscribers to this operation, if it is a couple must have at least an amount of income of 1,500 USD per month. Many tenant borrowers do not earn as much. This is why, the banks refuse their request for repurchase of loan
Debt after restructuring and bank scoring
Before granting the loan restructuring, the bank checks the subscriber’s debt ratio after the implementation of the transaction and its bank score. If his remaining living does not allow him to live decently, or if he has an unstable professional situation (interim or contract on fixed-term contract, or unemployed), the banks can refuse to grant him this refinancing.
In addition, the banks need to make sure that they will not lose the money injected into this refinancing with a person who does not have a long-term and secure cash flow. For a self-employed person or a liberal profession, they will thus ask for a seniority of 3 years in their activity with a positive assessment of their performance. This allows them to ensure that they can recover their funds.
The FICP file
The people listed in this file are those who have not paid two full monthly payments and those whose monthly payment is more than 60 days late. Those who have not respected the limit of their bank overdraft or who are the subject of a bank legal proceeding can be found in this file. Finally, those who have submitted a file which is declared admissible to the debt reduction committee also appear in this list of FICP file holders.
The law requires that financial institutions consult this file before granting the loan. This is to prevent a borrower who has not yet paid off his debts from taking out another loan. The fact of appearing in this file constitutes a reason for refusal for the borrower tenant.
On the other hand, if he is an owner who has already paid off his real estate or a homeowner, he can benefit from a mortgage loan restructuring in the event of a FICP filing or high debt. Tenants whose parents can provide a real estate guarantee can also claim this financial transaction.
The group incident
The cause of the refusal to repurchase credit can be the group incident, that is to say, that in the past, the borrower had had a dispute with a parent organization belonging to the same banking group as that in which been presented with the dossier. His file is thus automatically refused.
There are many cases of refusal of a tenant loan buyout. Apart from the reasons given, the age of the applicant may be questioned. In all cases, in the event of a negative response, the subscriber to this transaction must make a redemption request from other brokers or other financial institutions. We recommend that he start with the simulation tool on our site in order to obtain the best buyout offer from our partner banks.