Any ideas how?

[rilbrianne]

Does anyone have any ideas how one could take advantage of such low home prices? All I've ever wanted was to buy a very inexpensive home, put a little money into it over time and be free from a huge mortgage. I've always thought about it, since I was young. I can't see spending so much money on anything, even a home.

I can put down 5-6000 on a loan, and we make decent money now and have been on a strict budget. My husband and I have never owned a home and only BK over a few auto loans and some small medical and a few small credit cards and cell phone bills. We are young, what can I say? I had no idea what those things could do and apparently, my husband didn't either. Most of those were his although we filed together.

Needless to say, our credit is in the low to mid 500's and we can't get a gas card or any other kind of credit. We did do a secured CD loan with our bank, put money into a cd account and took a secured loan against it to rebuild our credit. I don't think it made any difference on our score though.


Long story short, is there any place out there that would give us a small loan for say, $25,000 so we could buy one of those foreclosures? I don't know if anyone with crappy credit can get any type of loan these days. I am dying to get one and be payment free after a few years instead of being sucked dry for the next 30 yrs.

I know it's not a big loan, most of you probably make so much that you'll look at this and ask "why would you even need a loan for that amount?" Because I don't have an extra $10000 per month to put into my IRA or savings or into my children's private school. I'd be happy with an inexpensive home that needs work. We are low income but have no car payments or other bills that would throw us under the bus if we lost a job.

[rilbrianne]

I just started looking into the possibility of having our rent payments reported to the credit bureaus. I can't believe I didn't think of it earlier.

[HHM]

Don't give into desperation. Home prices aren't going up anytime soon. Prices were down 19% from this time last year, and there is nothing on the horizan that is going to change that.

The problem is not your credit score, it is simply you are too soon after the BK. Literally, the only programs available for mortgages right now are FHA (2 years from BK, 3.5% down), and Conventional/Fannie Freddie (4 years from BK, 5-10% down).

[GoFigure]

I purchased a NEW house from a local builder. The builders are lowering the prices of new homes to be in line with the foreclosures.

I have a BK ch 7 discharge on my credit reports. The builder was unable to secure me a mortgage. I called Wells Fargo direct and they issued me a 30 year fixed rate mortgage at 6.5%.

The BK did not matter to Wells Fargo. They did not care.

GO FIGURE

[LoanDoctor]

I would suggest that you contact some credit card companies that will take people with recent BK's and get some active tradelines going. The only way you are going to improve your scores is by establishing your credit and showing that you can handle paying your bills on time. Most of the initial ones that will give you credit (First Premier, Legacy, etc) charge a 200 fee to get the card, and just give you a 300.00 credit limit. All you have to do is make monthly payment and your scores will start to improve.

November is not that far off, and is a great time of the year to purchase a h9me.

Charles

[StartingOver08]

I purchased a NEW house from a local builder. The builders are lowering the prices of new homes to be in line with the foreclosures.

I have a BK ch 7 discharge on my credit reports. The builder was unable to secure me a mortgage. I called Wells Fargo direct and they issued me a 30 year fixed rate mortgage at 6.5%.

The BK did not matter to Wells Fargo. They did not care.

GO FIGURE

When was your discharge? Did you surrender a house in your BK?

[GoFigure]

When was your discharge? Did you surrender a house in your BK?

My discharge was in 9/2003.

I just purchased my home in 7/2008.

I never had a foreclosure on my record.

[LoanDoctor]

The conforming/conventional rules are that a loan won't be granted unless the BK is over 4 years old, which yours is.

There was a time that lenders like Wells Fargo would "portfolio" a loan, which means that they would keep the loan for the length of the loan, but now everyone approves their loans "by the book" so that they can sell the loans in the market.

Charles