Where can I get a mortgage?

[samson420]

I just completed a Chapter 7 about 4 months ago. So I have been living in my soon to be foreclosed on house ever since. We have been saving money back as much as possible.


My original idea was to rent a house when we had to leave.

But, I decided to start looking at home prices and they are a joke. I can get a house that is very nice for 70+k.

I don't have 70 Grand to pay for a house out right. But, I do have a significant amount to use as a down payment(close to 20k).


Is there any way for me to get mortgage of some form?

I know of such thing as a "hard money" loan and that will just not work for my situation.


I have also seen private funding type loans. But, I just find investors who are trying to sell me a house and have me make a down payment to them and make monthly payments through them.

Owner type financing seems kind of flaky to me. . . . . Is there any other options?


I need such a small amount. But, I can't just make it appear.

[HHM]

Based on the options you have been exploring, you appear to already know that you WILL NOT get any sort of FHA or conventional mortgage at this time. You are too close to your BK. I wouldn't worry about home prices too much, they aren't going up in any significant way anytime soon.

Go rent, do not give into the "frenzy", get your situation stabilized and then worry about buying when you are actually ready. After all, you just came out of a foreclosure and BK 7, why suddenly buy a new pile of debt with a mortgage.

[samson420]

I really hate the idea of renting. I only moved once in the last decade and I sure don't want to do it more then I have to.

A 80k mortgage does not even seem like a lot of debt to be since what I owed before was around 5x that.


I am still considering renting though.



Just blows to see house prices so low and I can not take advantage. My other worry is that, can they go any lower? But, no one will have the answer to that question.

[Ugh07]

owner financing or hard money will be your only choices.

[samson420]

Hard money loans sure suck for my situation. . . . . .


I am trying to get private financing through people. But, money is tight. . . . I kind of figured this.


Private money is hard to find. . . . Hard Money is not, since it sucks.

[Ugh07]

Realistically, Private money is hard money. "Private Money" as its perceived by most is an urban legend. Hard Money for the most part comes from individuals. I often arrange for "private money" loans from Drs. and Lawyers to homebuyers/investors, the terms are no different than what would be considered "hard money".

[samson420]

Realistically, Private money is hard money. "Private Money" as its perceived by most is an urban legend. Hard Money for the most part comes from individuals. I often arrange for "private money" loans from Drs. and Lawyers to homebuyers/investors, the terms are no different than what would be considered "hard money".

The only difference that I have found is that the term is a bit longer.

[yourbabymomm]

I would ask someone in the biz. $20k down on a 70k house is almost 1/3. That might overshadow credit issues. On another board I have read about things like this, ask around and see!

[samson420]

I have been looking around and still can't find anything that is really good. These private finance type people seem kind of shady to me.


I know I can do 20k down on a 70k house, but I just can't find anything legitimate myslef.


It does seem like a joke, it's only 50k. I can pay that off easily in 5 years.

[HHM]

I have been looking around and still can't find anything that is really good. These private finance type people seem kind of shady to me.


I know I can do 20k down on a 70k house, but I just can't find anything legitimate myslef.


It does seem like a joke, it's only 50k. I can pay that off easily in 5 years.

It's simply a factor of the lending market you are in; the home buying incentive expires in 2 1/2 weeks, the fed is no longer buying or backing mortgages, it will actually be tougher to get mortgages this year than last. The lending restrictions are extremely tight, there is very little wiggle room, you could have 50% down but because of the BK within 2 years, you would get denied.

I think you are trying to jump the gun...we are going to see a double dip in the housing market. There is a huge inventory of foreclosures still to complete, the home buyers tax credit is going away, and interest rates are slowly ticking up and with near 10% unemployment, there are simply not enough buyers for the houses on the market.

[samson420]

I know I can wait. . . . But, I am so use to having a hause. I just hate the idea of renting out here. I see so many people rent for a few months then the owner lets the house go under.

[Ugh07]

the fact that its 50k actually makes the deal harder not easier, small loans yield small profits. If you had 25k down you should be able to find a reputable hard money lender to lend you the rest at 13% for 5 points.

[DeadManCrawling]

My wife is in the real estate industry. She works with many "hard" or "private" money lenders. Right now, she is seeing the following:

Clients are choosing not to lend. Many believe the market will decline by 20-35% in the next 18 months. They are not willing to take that kind of risk, regardless of how large a downpayment you have. The appraisal process is completely screwy right now, and it is difficult to really know what a property is worth to begin with.

Instead of lending, especially on lower price houses, her clients are shifting toward becoming landlords. They get a more immediate return, and a higher rate of return, if they buy a house for 60k and rent it out for $800/month. The rental market is on FIRE in our area, because of the huge number of foreclosures. This may change later this year, as banks unload masses of shadow inventory. This varies by neighborhood, but many of her clients are planning to be landlords for the next 5-7 years while their traditional lending activity recovers, and the housing market tries to become somewhat normal. If it ever will.

The money is still out there, but is being utilized differently, at least among our friends and associates.

[yourbabymomm]

Renting isn't that bad of an idea. There are laws in place to protect tenants should the landlord become a foreclosure.
One thing you can do is check court dockets online to see if anything is brewing; foreclosures nowadays seem to take forever anyway.
When we rented our current townhouse we had the landlord put a provision in that if he were to experience foreclosure that he notify us immediately and also let us out of the lease early.
Not too familiar with the new laws but I believe the bank has to honor the rest of your lease and becomes the landlord, long story short. Not sure if this is the case for everyone, but I believe it's at least for Sallie Mae.
I really don't mind renting right now and it's actually kind of enjoyable. If something breaks, I am not responsible (such as appliances that fail, etc). I don't have to worry about property taxes, etc. etc. If you take your time and look for a private party to rent from and become friendly with them you can get a good idea of their long term intentions, possibly purchasing the house down the line.
The only thing I don't like is asking permission to do certain things, like painting or what have you but our landlord is pretty cool about it. They're not all like that, but you have a choice when you rent from someone and can get a pretty good idea what it's going to be like after meeting them a couple of times, or just conversing back and forth with phone calls or email.
Didn't mean to ramble!

[ForumReader]

I agree with the posts above about obtaining a mortgage so close to being emerged out of BK. I would wait a few years before shopping around for a mortgage. Meanwhile, like the poster stated above, renting is not too bad especially if the landlords are fair and reasonable to work with. Goes both ways, really, the landlords and the tenants. Yes, I feel the same way about feeling funny asking for permission about certain things before getting them done such as getting a diseased tree removed from the front yard or paint a different shade of color in a bedroom!