Submitting Petition tomorrow... New House???

[UDSquirrel]

Hello! I know this might sound crazy, but here goes...

My husband and I are filing bankruptcy (I lost my job last April, got a new one, and was laid off from that last September and have yet to find anything!). We are submitting our petition tomorrow and thus the process should hopefully go smoothly...

However, I have a friend who house-sits for a sweet older lady that owns a nice 2-story house on 2 and a half acres in OH. She's lived in Chicago for 2 or 3 years now and has been WANTING to sell the OH house, but is reluctant to sell to just anyone since it's the house she grew up in etc... Well, given the current financial mess, etc. she is willing to sell it to us (a "nice young couple" for $49,000. I've seen the house, it's in great condition, etc and pretty much what we've ever wanted in a house. We are currently renting now, and would like to eventually start a family in a couple years... And the house is valued at well over $100k... Would it be economically possible/wise to attempt to get financing for this house so soon after/during bankruptcy? My husband's parents may be willing to cosign for us since it's such a good opportunity, but most importantly we don't want to screw up the credit again after the bankruptcy, we want to make sure we do things right.

Any opinions?

[relief13035]

Sounds like a great deal, but I don't know who would give you a loan during bankruptcy.

[B65]

I dont think

you can get financing during a bankruptcy and it could be 2 years after discharge after to get a mortgage, not sure if someone co-signs.... my question is why would the woman throw away 50k? does she not need the money, why would she not sell it for what it is worth?

[Flamingo]

2 story house on 2 1/2 acres for $49,000? I need to toss some things at you that you are not going to like to hear or want to hear but are things you could encounter as to this situation. There is more to this than meets the eye or there is something amiss that you don't know about. Also, does this woman have any family? If she does, wonder what will occur when they find out about this. How old is this lady and does she know what she is doing? Who would be selling the house for her; be careful cause if she has family and something like this goes through or is organized/instigated by your friend, State social services involved with elder abuse will come at everyone with full force and charges could be filed. You need to do some hard investigation into this plus the fact that you are filing Chapter 7 tomorrow. You yourself know that getting a mortgage/loan at this time is probably impossible. If this all checks out, get your inlaws to buy the house and in time transfer it over to you with you paying rent to cover the mortgage payments.

Be careful with this one...

[AngelinaCatHub]

Flamingo brings up wise questions. Your deal of a century may go sour. In my opinion, ask your parents to purchase it on their own with a surety plan with a Title company, then rent it from them till after the dust clears. 'Hub

[Brighterdays]

As flamingo says " If its too good to be true, it probably is" !!

Having been a mortgage broker(in Ohio),I have seen dirt cheap deals. Yes depending on the location you can steel property compared to other states.

1)make sure it isn't in a trust. The relatives might have something to say about it.
2)Make sure she is of "sound" mind. If she isn't in control of her mental falculties, this could pose a problem in court.

I doubt you get financing within at "least" a year and more likely 2 after discharge. you will need at least 20% down more like 40% before a bank touches you. So figure 15k to 20k down. You could try a lease option or landcontract. just make sure its recorded at the county or it might not be valid if she should happen to pass away.

[TEW]

Having been a mortgage broker(in Ohio), Yes depending on the location you can steel property compared to other states.

1)make sure it isn't in a trust. The relatives might have something to say about it.
2)Make sure she is of "sound" mind. If she isn't in control of her mental falculties, this could pose a problem in court.

I doubt you get financing within at "least" a year and more likely 2 after discharge. you will need at least 20% down more like 40% before a bank touches you. So figure 15k to 20k down. You could try a lease option or landcontract. just make sure its recorded at the county or it might not be valid if she should happen to pass away.

Land sale contract is a good way to go. I am building my down payment while i am living here.

[Brighterdays]

Land sale contract is a good way to go. I am building my down payment while i am living here.

just make sure it is recorded at the court house. You wouldn't believe how many deals I lost because they didn't have claim to the house cause it wasn't recorded. Each state is different so YMMV