Got Declined? From $126K Debt to Homeowner in 10 Months

What would you do if you lost both parents, your job, your marriage, and your business all within 18 months? Most people would give up. Chris Ramotar didn’t.

Chris is a Windsor-based realtor who went from owing $126,000 in collections to buying his own home in just 10 months. His story shows what’s possible when you refuse to make excuses and take action despite your circumstances.

The Perfect Storm

Between December 2007 and May 2009, Chris’s life fell apart piece by piece.

First, his father passed away on the day he was supposed to move closer to family. Just 14 months later, his mother died from an infection she picked up on a trip to Guyana. Four months after that, Chris got laid off from his job. One month later, his marriage ended.

But wait, there’s more.

Chris and his ex-wife had been running a trucking company. A truck crashed. A driver quit. Clients stopped paying on time. Within three to four months, the business collapsed completely.

The damage? Over $126,000 in debt and collections. They had to sell their house, which had a $40,000 lien on it. After everything was settled, Chris walked away with just $10,000.

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The Strategic Comeback

Here’s where most people would declare bankruptcy and start over in seven years. Chris took a different path.

He contacted every single creditor personally. He was brutally honest about his situation and made them an offer: “This is what I can afford. Either yes or no.”

It worked. Through settlements, he reduced that $126,000 debt to roughly $40,000-$50,000. He got release letters for everything he negotiated.

Rebuilding Credit Fast

Chris knew he wanted to buy a home, which meant he needed to rebuild his credit quickly. His strategy was simple but required discipline:

He took out a $5,000 car loan at 30% interest (yes, you read that right)
He got a Capital One credit card with a $500 limit
He paid both on time, every single month, no exceptions
He saved over $20,000 while working at the University of Windsor
He had about $15,000 in retirement savings from his previous job at FedEx

The high interest rate on that car loan sounds crazy, but Chris understood something important: he needed to establish a payment history, and the loan amount was small enough to manage. It was a calculated sacrifice.

Buying a Home While Broke

In 2010, just 10 months after being essentially bankrupt, Chris walked into a bank with his savings, his rebuilt credit history, and his down payment ready.

He got approved for a $197,000 mortgage with only 5% down. The interest rate was around 4-5%, which was reasonable for the time. He bought a townhome in East Windsor.

As a single father on a single income with recent credit problems, this shouldn’t have been possible. But he made it work.

The Reality Nobody Talks About

Chris didn’t suddenly become rich after buying that house. He lived in the townhome with his two brothers, his two young daughters, and a nanny. Four adults and two kids in one townhome.

He lived paycheck to paycheck for a long time. But he made an important distinction: “If I am broke and I know where my money is going, that’s okay. Whereas if I am broke and I don’t know where my money is going, then something’s wrong.”

He was building equity instead of paying rent. That made the struggle worth it.

From Truck Driver to Realtor

Chris never planned to become a realtor. He actually wanted to be a police officer.

But in 2016, while at the gym, a friend mentioned he was going to sign up for real estate courses. Chris went home and signed up immediately. His friend never followed through, but Chris did.

That spontaneous decision changed everything.

A Different Approach to Real Estate

Chris doesn’t just list homes and hope they sell. He treats every client’s property like it’s his own and their money like it’s his own money.

For him, real estate isn’t about closing one transaction. It’s about starting a relationship. He tells clients: “I’m going to hold your hands from here till this transaction’s over and then when your family’s ready, I’m gonna still be here to hold your hands. This is just the starting of our relationship. You’re stuck with me. You can’t get rid of me.”

His goal is to eventually sell homes to his clients’ children and grandchildren.

Marketing That Actually Works

Chris goes beyond the basics. Every listing gets:

Professional photography
Drone shots to show off the neighborhood
Professional video production
3D virtual tours
Targeted social media advertising

But here’s what makes his approach different: he doesn’t just sell the house. He sells the entire neighborhood and lifestyle.

Families with kids need to know about local schools. Young professionals want to know about the community vibe. Retirees care about different amenities. Chris creates specific campaigns for each property’s ideal buyer.

First-Time Buyers Are His Specialty

Chris found his niche working with first-time home buyers who feel overwhelmed by the process.

He starts by making sure they get pre-approved for a mortgage. He wants to speak directly with their mortgage agent or banker and see a letter of commitment before moving forward.

Then he walks them through every single step. He recently told a client to give him her hand, and when she did, he said: “I’m gonna hold your hands from here till this transaction’s over.”

That’s his style. Personal. Direct. Committed.

After the Sale Matters Most

Chris doesn’t disappear after closing. He gives clients a complete list of service providers they might need as homeowners: plumbers, electricians, insurance providers, mechanics, and more.

Clients call him for recommendations on everything, even when it’s not about real estate. He checks in regularly just to ask how they and their families are doing.

Why? Because Chris remembers what it felt like when realtors disappeared on him after he bought properties. One realtor he worked with never contacted him again after closing. That stuck with him.

He built his business on doing the opposite.

Giving Back to the Community

Now that Chris is financially stable, he’s passionate about giving back.

For the past two years, he’s awarded a $500 bursary to a graduating student at his daughters’ high schools who’s heading to post-secondary education. He plans to continue this forever.

He also sponsors a local cricket team in Windsor. Cricket is huge in Guyanese culture, and Chris grew up with the sport. Now that he can afford to support it, he does, with no expectations of anything in return.

Key Lessons From Chris’s Story

Chris’s journey offers some powerful lessons for anyone facing financial hardship or thinking they can’t afford to buy property:

Negotiation Works

Creditors will often settle for less if you’re honest about your situation and propose a realistic payment plan. Chris reduced his debt by more than 60% through settlements.

Credit Rebuilds Faster Than You Think

Even after massive financial problems, you can rebuild credit in less than a year with strategic action and consistent payments.

Stop Making Excuses

Chris’s advice is simple: “Don’t wait. Just do it and you’ll find a way of getting where you wanna be.”

He had every reason to give up. Instead, he got to work.

Know Where Your Money Goes

Being broke isn’t the problem. Being broke and not knowing where your money goes is the problem. Chris lived paycheck to paycheck for years, but every dollar had a purpose.

Support Systems Matter

Chris’s brothers let him live with them while he got back on his feet. That safety net allowed him to take the risk of buying a home while financially vulnerable.

The Bottom Line

Chris went from losing everything to owning property in 10 months. He went from bankruptcy-level debt to running a successful real estate business.

None of it was easy. All of it was worth it.

If you’re struggling financially or think you can’t afford to buy property, Chris’s story proves that with the right strategy, determination, and support, you can turn things around faster than you think.

The question isn’t whether it’s possible. The question is whether you’re willing to do what it takes.

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Frequently Asked Questions

Can you really rebuild credit in less than a year after major financial problems?

Yes. Chris rebuilt his credit in just 10 months by strategically using a high-interest car loan and a secured credit card, paying both on time consistently. The key is establishing a reliable payment history quickly, even if it means accepting higher interest rates temporarily on small loan amounts.

How much can you reduce debt through settlement negotiations?

Chris reduced $126,000 in collections to roughly $40,000-$50,000 by contacting creditors directly and being honest about his financial situation. Creditors often prefer receiving partial payment over nothing, especially when you propose realistic payment terms and communicate clearly.

Can you buy a home with only 5% down after having serious credit issues?

Yes, but you need to rebuild your credit first and show stable income. Chris bought a home with 5% down using CMHC insurance just 10 months after being essentially bankrupt. The key was rebuilding credit strategically, saving consistently, and having documented income.

Should you buy a home if you're living paycheck to paycheck?

It depends on whether you know where your money is going. Chris bought while broke but had a clear budget and family support as a safety net. He chose building equity over paying rent, even though it meant financial sacrifice. Having a support system and calculated risk assessment is important.

What's the best way to work with a realtor as a first-time buyer?

Start by getting a mortgage pre-approval before looking at homes. Find a realtor who will walk you through each step of the process and stay in touch after closing. The best realtors provide ongoing support and resources, not just help with the transaction.

How important is mortgage pre-approval before house hunting?

Extremely important. A pre-approval shows you exactly what you can afford and makes your offers more competitive. Realtors should speak directly with your mortgage agent or banker and see a commitment letter before showing you properties to avoid wasting time on homes outside your budget.

What matters more when buying a home: the house or the neighborhood?

Both matter equally. You're not just buying four walls and a roof, you're buying into a lifestyle and community. Families need good schools nearby, professionals might want walkable amenities, and retirees have different priorities. The right house in the wrong neighborhood won't make you happy.

How quickly can you bounce back financially after losing everything?

With the right strategy and determination, faster than you think. Chris went from $126,000 in debt to homeownership in 10 months. The key is taking immediate action, negotiating settlements, rebuilding credit strategically, saving aggressively, and refusing to make excuses.

Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.

Written by

LendCity

Published

December 22, 2025