I voluntarily withdrew from debt review in Oct 2014. Finally on 8 Nov, the court has rescinded order. How long must I wait till I can apply for a home loan? I was told I must wait 3 – 5 years before any bank will give me a home loan. Is this true?
Thank you for your question.
If you withdraw from debt review before receiving your clearance certificate you need to consider the following:
When a debt review is cancelled it will be listed on your credit profile until a Form 19 is issued. This can only happen when;
- you have brought arrears up to date and are able to pay original instalments, or
- if your debt has been settled.
If you have settled your debt but it still shows on your credit record I would advise the following:
The National Credit Act states that the retention period for default listings has now been reduced to 12 months. In the same way, retention periods concerning administration and sequestration orders have been reduced to 5 years.
If you have reached your retention period and the information is still listed I would suggest you firstly dispute your credit listing with the credit bureau where you pulled your credit report.
Have a great day.