Will ANYONE give us a mortgage?

[doomed]

We are only looking for just under $45k for a small house. Rents in this town are few and far between and crazy expensive. We're currently renting from family but they're breathing down our necks to find a new place so they can sell this one.

Husbands income is $42k/year and I am currently looking for a job. We are 1 year out of our ch 7 bk and just a few weeks out of foreclosure.

Any ideas, anyone?

Edited to add: We have about 9k for a down payment.

[Freddy03]

I believe you have to wait 2 years after a foreclosure to qualify for another mortgage.

[doomed]

Does anyone have ideas for if you CAN'T wait 2 years? I've been trying to find another rental for months

[DesdemonaB]

Hi

I am currently kinda on the same situation, landlord looking to downsize and get out of his own lease, put me on a month to month. I am just just 5 month post discharge and my rent will increase up to 500 per month when I move out. I spoke with my mom and she is going to help - she is going to purchase a home for me then we will enter into a land contract with a rental period of 3 years, this will allow me to lower my monthly housing expense, save some extra money for a down payment and wait out the required timeline in order apply for the mortgage in my name.

[doomed]

Glad to hear it, Desdemona! I wish our family could help. Neither can, its in my in-laws who own the current place we're in. Maybe I should write to congress and let them know my family is too big to fail and we need to be bailed out?? LOL

I would even go with subprime but even that has dried up. It's only a small loan so I'm thinking they couldn't screw us TOO bad.

[tobee43]

i know we owner financed, however, i know many don't have that option.

i have "first" hand info on this only because just less than two weeks ago we were going to co-sign for our daughter ( we ended up not having to) but we were told if you were in a 13 ...it's a year and 2 years with a 7, or so we were told by quicken loans. so at this point they would not only let us co-sign but get the mortgage ourselves.

[doomed]

Tobee, do you have any advice on finding an owner financed house?

[tobee43]

Tobee, do you have any advice on finding an owner financed house?

well, doomed, i can only tell you about our experience. we looked and looked and looked and found a rent to own property. we didn't wait for the option to come due, but offered the owner more money and a rather large down payment as an incentive to exercise the option. he went for it. he financed the balance 100% @ 5% no closing cost other than the title company and regular or normal costs when one closes on a house...elimating the bank completely.

also, our daughter couldn't sell her house in nj, so i had her do a land contract, which i drew up it is basically a lease option to buy. it was for a couple that could not get a mortgage at this time, but i had a friend that is a broker handle the house, her firm collects the money and applies it to the existing mortgage, in the mean time we have someone working with that couple in "assuming" that mortgage once their credit meets the criteria of that lender. it's a win win for both the couple wrapping around the existing mortgage and my daughter who was unable to move the property due the sluggish market. (you do need a lawyer to draw up a land contract). that may be attractive to an existing owner to hold that small note you need??

the way you do that is go to a Realtor in your area and ask about properties with rent option to buy options. or ask about any owners they know that are just wanting to move and own their home. (that's what we did). it took about a year to find it. and then, we lived in the house for a year prior to asking the owner to sell it, even before the option was due. there are actually people ready to retire and wanting to take advantage of low prices i.e. in florida, or AZ, or one of the warmer climate states full of inventory.

now, any extra monies we have goes into paying down the mortgage. since feb, i know we already cut about 5 years off. we hope to have the house pd off in less than 5 years from now.

best of luck! you can do it, it's just work

[doomed]

Thanks for the info, Tobee. I doubt we'll find someone willing to do that here

[tobee43]

you never know until you try!!

many people in maine have to retire right??? and maybe a few would like to move to warmer climate. now think positively

[drowning123]

Don't give up, doomed. Speak to realtors in your area.

[doomed]

Thanks, guys. I emailed all of the ones in the area that had email addresses listed on their websites and no go for any of them. Sigh.

[tobee43]

Thanks, guys. I emailed all of the ones in the area that had email addresses listed on their websites and no go for any of them. Sigh.

you need to give it "time".

is there any family member that would co-sign the 45k you need???? with a promissary note that you would refin asap ...or until a lender will accept you??

[btbeme]

Arizona has a number of Rent to Own listings, and that number is getting larger. Whole realty companies have sprung up around this option.

Currently, I see most asking for 20-30% down, though I have seen quite a few for 5-10% down. Most are asking for a 5 year term (reasonable interest for 5 years with a balloon payment - you would pretty much have to refi with a bank in 5 years).

I am certain that this exists elsewhere and everywhere. One thought - I live in a desirable neighborhood. People interested in renting or doing rent to own have posted notes on our community mailboxes. I have also received two letters in the mail, handwritten and addressed to us (neighbors have as well) asking if we wanted to rent our home out, do a rent to own, or knew someone who would want to do so.

The one thing is that people will want to sell their homes for a number of reasons, but the current downturn is making loans and valuations hard to get. If a seller wants to buy some time until the market recovers...they might consider a rent to own!

Solicit neighborhoods that you would like to live in. You might get a reply or two.

[HHM]

Does anyone have ideas for if you CAN'T wait 2 years? I've been trying to find another rental for months

No such thing as CANT Wait. You CAN and you don't really have a choice. Sorry.

Why the urgency to rush into a declining real estate market.