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Financial Question
2/24/2013 | Myself

Posted on 02/24/2013 7:36:13 PM PST by ducttape45

I am hoping that someone on FR can help me with a financial issue.

Let me state first out that this is not a request for assistance. I don't want to run afoul of any posting rules or guidelines. This is a request to find out if anyone knows of a resource that I can avail myself to in order to help me.

Also, I know how some of what I will share will sound. I know that there could be some personally embarrassing information to follow. I make no excuses for the situation I find myself in, but I am hoping that I can find help in spite of my current situation.

The situation is this: I am living in a house that is somewhere in the process of foreclosure. Where exactly is still a mystery. I am told that it is now up for short sale but I've been kept in the dark on that aspect of what is going on. What I do know for sure is that the investor has failed to make payments on the house and for the last 9 months I've been living here rent free.

The realtor who I deal with told me that she would like to see the house sold to me. The amount owed on the house is somewhere in the neighborhood of $53,000 but it will short sale for $10,000 - $11,000. I have $5,000 in my savings account. All I need is another $5,000 - $6,000 and I can buy this place. And therein lies my problem.

There is no way to say this except to say this: my credit sucks. I won't post my FICO or credit scores, but they are not good. It doesn't help that I had to file for bankruptcy last year and it discharged in September. I actually have no bills to pay on except for utilities. I do have school loans that are under forbearance until September 2014. So I am in a unique position. Unfortunately, no lender will look beyond their rules and regulations to see that.

In their defense I know the rules are there for a reason and after the recent national mortgage meltdown I can't really blame banks for being much more cautious, but I was hoping that someone would see that I could pay a loan back within just 6-8 months tops and bend the rules a bit.

Please, this is a serious request and I would appreciate no flaming whatsoever. While the facts are the most very basic (believe me, there are many more things about the price of the house, the fact that the house was once part of military housing), these are still details that are personal in nature and I share them only in the hopes that someone can lead my in the right direction.

Moderator, if this post is inappropriate, do what you must. Thank you.


TOPICS: Miscellaneous
KEYWORDS:
Please, be gentle, and as I mentioned earlier, no flaming please, just honest serious posts. Thank you again.
1 posted on 02/24/2013 7:36:21 PM PST by ducttape45
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To: ducttape45
There are always these guys (giving Native Americans a bad name since 1996)


2 posted on 02/24/2013 7:41:38 PM PST by mnehring
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To: ducttape45

Look for private investors. If the house will truly sell for that low you really shouldn’t have a problem getting a loan since its much less than the value. Have you tried talking to any mortgage brokers? They may also know of some ways to get you the loan.


3 posted on 02/24/2013 7:42:12 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: ducttape45

I’d think you could find a family member who’d personally loan you $5K, and you give them an interest in the house till repaid. They have a loan-to-value ratio better than 10%, so they’re well protected. Make sure it’s in writing and run it in front of an attorney to make sure it passes muster.


4 posted on 02/24/2013 7:42:35 PM PST by Still Thinking (Freedom is NOT a loophole!)
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To: ducttape45

Your only hope is to find someone else to buy the place, and then sell it to you.

Have any relatives that could to it?


5 posted on 02/24/2013 7:43:32 PM PST by editor-surveyor (Freepers: Not as smart as I'd hoped they'd be)
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To: ducttape45

You hinted at it, but it remains unclear to me. What is the market value of the home?

Whatever may occur - one thing is clear. You are already a winner having lived there 9 months rent free.


6 posted on 02/24/2013 7:44:59 PM PST by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: ducttape45

To rebuild your wealth, do two things, live below your means, and do not assume debt. Trying to buy this house is to assume debt. Forget the house, take the foreclosure or someone buying your house via short sale. If you have a job, you are a step in the right direction. Rent and quietly save. Use the savings to eliminate any other debts you have. The other reason you want to rent during the time you are trying to rebuild your savings and credit is MOBILITY. If a better job is available in another part of the country, you can pick up and go when renting.


7 posted on 02/24/2013 7:47:33 PM PST by Fee
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To: ducttape45

I suspect that the immediate equity should be an incentive to one or more person(s) to assist you. you’re even allowed a “gift” of $12,000 or so per year (I forget the exact amount), provided you attest to it not being paid back... I think you would be far better off dealing with a trustworthy individual than with a bank.

disclaimer: I am not an expert on any aspect of this, it’s just my 2 cents


8 posted on 02/24/2013 7:48:57 PM PST by Libertarian4Bush (if you voted for obama, I have no respect for you. you're either a loser or a sucker. sorry!)
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To: ducttape45

Wanna warn you that there are some cynical souls here who will criticize you and suggest faults without any basis, tell you that you are whining, and thus and such. Ignore them if they are not helpful.

It it understood that it disappoints to have an opportunity come near but then it looks like you are unable to reach quite all the way to it. However, especially if you have a steady job now in spite of financial troubles in the past, it cannot hurt to advise the bank involved of your interest in the property anyhow. The worst they can do is tell you “sorry,” and then you were where you were before. (And some banks are now offering ridiculously easy terms to people who became unemployed then regained employment; the interest cash cow beats the pants off of a portfolio of unsellable houses in a sluggish market.) If you have work (I hope you do, of course) then maybe whoever becomes the new owner may be willing to rent it to you, or enter into a private rent-to-own agreement. Do not be afraid to ask; the worse that can happen is to be told “sorry.”

God bless, and good luck.


9 posted on 02/24/2013 7:49:17 PM PST by HiTech RedNeck (How long before all this "fairness" kills everybody, even the poor it was supposed to help???)
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To: mnehring

LOL You want the mafia style. They are it. Their interest rates which they keep hidden could be as much as 164%. Stay away.


10 posted on 02/24/2013 7:54:51 PM PST by freekitty (Give me back my conservative vote; then find me a real conservative to vote for)
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To: driftdiver

All the mortgage brokers turn up their noses. Unless I get a loan over $40,000 they won’t give me the time of day.


11 posted on 02/24/2013 7:56:58 PM PST by ducttape45
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To: ducttape45

You might want to see a lawyer about Adverse Possession, laws are different in each state, but generally if you pay all back taxes, liens (other than mortgage), and make some improvements to the property, you may be able to keep it after living there for seven years after filing.

If you have a rental contract, or sometimes even if you don’t, most banks have a cash for keys policy where the bank will pay you some moving expenses up to 1,500.00 if you leave the property in good shape.

You can google these solutions for more accurate info based on your location.


12 posted on 02/24/2013 7:57:34 PM PST by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
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To: ducttape45

Don’t completely deplete your savings to buy the place. Bad idea. You need an emergency fund to cushion yourself, unexpected repairs to house or car, unemployment, medical expenses that are not covered. You could find yourself over a major financial barrel with no savings even with owning the place outright. Taxes and inaurance don’t go away. Houses are lost to tax sales all the time.

How much was the rent you were paying? That is what you’re “buying” in practical terms until you sell the place. How is the job market where you are, and how secure is your employment or income source?

Pay no attention to what the realtor suggests, she’s going to suggest whatever earns her a commission. Just discount it as self interest right off the bat, put it out of your mind.

You also need to come to terms with just exactly what put you into bankruptcy. Old habits die hard and a “free” place to live could tend to exacerbate a lack of financial self-discipline.

I wouldn’t do it unless I could keep at least two months pay put back in savings, and the combined payment, tax and insurance is less than what you were paying for rent, with a pretty secure income.


13 posted on 02/24/2013 8:02:14 PM PST by RegulatorCountry
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To: ducttape45

are you a vet ? Generally, the Department of Veterans Affairs asks lenders to use the past twelve months of a borrower’s credit history to determine their ability to repay any credit obligation they will have in the future.


14 posted on 02/24/2013 8:06:24 PM PST by stylin19a
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To: Responsibility2nd
I wondered if someone would ask me about this.

The housing is just outside the former Grissom Air Force Base in central Indiana. The housing is, well, an interesting story. Back when the housing was built, someone got the plans mixed up. A base in Florida got the housing Grissom was supposed to get, and visa versa, we got theirs. They got the better housing, Grissom got the worst.

The housing section where I live, as built, is not worth much over $12,000 - $15,000. The plumbing is substandard, the wiring is over 50 years old, and there is very little insulation built into the structure. However, when the housing was opened up, the local realty association demanded that any houses that were sold were not be sold for less than $30,000 so their market wouldn't suffer.

Well, folks in Miami county all see how that worked out. Now ALL THE HOUSING in Miami county is undervalued. I laugh in spiteful ridicule because when the realty association pushed through their request I stood up to them and told them they were wrong to their face and they were inviting disaster. I hate to say I told you so.....................

The market value of the home is priced between $10,000 - $12,000 tops. That's all the physical structure is worth. Honestly, I would say the house is worth no more than $7,000 - $8,000 but that's because I have access to the blueprints and I've seen how they were built and maintained. Not good.

15 posted on 02/24/2013 8:11:09 PM PST by ducttape45
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To: Fee
Oh trust me, I love waaaaaaaaaaaaaaaay below my means. I've been dieting and my grocery bills are a fraction of what they once were. I live only 3 miles from work. I don't travel much. I really don't want to miss out on this house. My neighbor is great, the neighborhood is great, and I have no chance of moving anywhere else, especially now that there is a federal freeze on federal hiring.

I'm looking at this from the aspect that if I can get this house, it will be paid off with a years time and I'll be in the house that is mine, free and clear. No payments, just the insurance and upkeep.

16 posted on 02/24/2013 8:19:09 PM PST by ducttape45
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To: ducttape45

If the houses are all that bad, then you’d really be unwise to get involved in trying to own one. You couldn’t sell it again for the amount of money that you’ll be paying on it. As time passes, you’ll have to spend money to keep the place shored up. It’s one thing to try to restore a fine old house that has good bones, but this place, you say, was crappy from the first day. It’s going to be a money pit.

This is just a very bad idea. Consider yourself lucky that you’ve had nine rent-free months to get your life together and refresh your savings, and forget this “deal.”

Even if you had the down payment, a bank or mortgage lender still might not place the loan. They do an inspection beforehand, and poor condition, structural problems, or serious building-code violations make them reject loans.

Count your blessings.


17 posted on 02/24/2013 8:21:18 PM PST by ottbmare (The OTTB Mare)
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To: ducttape45

Man! Talk about a depressed housing market. That’s worse than Detroit. What were you paying in rent? What are the annual property taxes?

I would not buy unless tax values are in line with actual market values. I was reading on other threads that 42 percent of homeowners in Detroit do not pay their taxes. Why should they? The taxes are higher than the home is worth. And the city has no reason to foreclose.

Being that you are in a severly depressed housing market, I have to assume other markets like the local economy and job market are down too. Look. You’re already getting a free ride living rent free. Continue to sock away money you would be paying for rent and keep living there rent free. I imagine the bank is happier having you in there to maintain the place rather than having it sit vacant.

I just don’t see this as a good buy. And as I’ve said - you are already money ahead living rent free.

God Bless.


18 posted on 02/24/2013 8:22:28 PM PST by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: ducttape45

I am not trying to be mean spirited, but you have no business owning a home. If you cannot come up with another $5k, and your credit score sucks, then move out and get your financial act together. Get more of a war chest. Pay off your debts. Pay your bills and do not focus on getting yourself into more debt.

Many of us have been where you are. My wife and I walked away from our first house in 1990. Rates were high and I got transferred. Our daughter was just born.

Two months ago our net worth exceeded one million for the first time.

You can do this. Just take your time and leave within your means.


19 posted on 02/24/2013 8:22:29 PM PST by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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To: ducttape45

I am not trying to be mean spirited, but you have no business owning a home. If you cannot come up with another $5k, and your credit score sucks, then move out and get your financial act together. Get more of a war chest. Pay off your debts. Pay your bills and do not focus on getting yourself into more debt.

Many of us have been where you are. My wife and I walked away from our first house in 1990. Rates were high and I got transferred. Our daughter was just born. We had $53 to our name. That’s-$5-3, fifty three. We stopped on the way home and had a $100 dinner...just to make sure we were completely broke. And we started again. From zero.

Two months ago our net worth exceeded one million for the first time.

You can do this. Just take your time and leave within your means.


20 posted on 02/24/2013 8:24:23 PM PST by Vermont Lt (Does anybody really know what time it is? Does anybody really care?)
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To: HiTech RedNeck

I’m in a job, a very steady job. Have been since June 2004. I’ve been calling and emailing banks and so far only one been talking to me. I’m gonna looking up some more tomorrow. I’m getting too tired to type. As for an new investor coming in and buying the place, before that happens the place will most like go up for a sheriff’s sale, which means I’ll have to move out before that takes place.


21 posted on 02/24/2013 8:25:21 PM PST by ducttape45
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To: ducttape45

>>Oh trust me, I love waaaaaaaaaaaaaaaay below my means.<<

Me too.

Then I got a divorce ;)


22 posted on 02/24/2013 8:30:07 PM PST by freedumb2003 (I learned everything I needed to know about racism from Colin Powell)
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To: ottbmare
The biggest thing abou the houses is the lack of insulation. the structure of them is stable and can be remodeled with a huge expense, and I work in a construction office. The folks I can ask advice of are many.

To be able to own the house and get it paid off within just a few months would finally put me in the driver's seat for once. And if/when I purchase it, I already have plans to start remodeling the place, on section at a time, and bring it up to code.

23 posted on 02/24/2013 8:32:00 PM PST by ducttape45
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To: ducttape45
Rather than express my opinion, which is similar to Fee and RegulatorCountry, I suggest you contact Dave Ramsey. He has years of experience with situations like yours. He'll be impartial and give you good advice.
24 posted on 02/24/2013 8:35:47 PM PST by upchuck (nobama fact #69: For each job created by the nobama administration, 75 people went on food stamps.)
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To: freedumb2003
That happens when the drugs start kicking in. Ambien usually makes it very hard to type. I live way below my means. I don't go anywhere except work and the store. Income wise, once the house is paid for, all I got is utikities and I can start saving money and making repairs. Sure I only bring home about 1950 a month, but I'll be ok if I'm a house that's already paid for.

I just need a lender who will work with me.

And I need to get to bed before three keyboards turn into 6. Night gang, and I'll check back in the morning. Thanks for your suggestions.

25 posted on 02/24/2013 8:37:33 PM PST by ducttape45
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Comment #26 Removed by Moderator

To: ducttape45

Let’s try it this way: if the lender forecloses on the house, can you approach them separately and ask them if you can continue renting the house from them? Perhaps on a rent-to-buy arrangement? It would be innovative, and mortgage companies aren’t known for being imaginative, but on the other hand foreclosed unoccupied houses quickly deteriorate into being of no value at all, and your presence could prevent that from happening. It would give you time to save up an additional $5K,

And while you’re saving, remember that whenever you buy a house there are various closing costs—taxes, escrow contributions for six months or a year of taxes and insurance, appraisal costs, filing fees, title searches, owner’s title insurance, gouges, cheats, superfluous charges, credit check fees, the lawyers, you name it. These can run into several thousand dollars and they are paid at the settlement. You can’t just bring the down payment to the settlement table and expect to walk away with the keys. Few buyers leave the settlement without feeling raped. So you will have to accumulate more than just that extra $5K you need.


27 posted on 02/24/2013 8:42:02 PM PST by ottbmare (The OTTB Mare)
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To: ducttape45

First of all, no mortgage company is going to finance a $5,000 loan. You’d have to go to a local bank. Go to your bank and explain it to them. Tell them you’d like to finance $10,000 and will put up $5,000 for collateral. Of course they’ll have a lien on the house.

I would think any bank would jump on a loan of $5,000, or even $10,000, for a property worth $53,000. If this doesn’t work, sell your car or do whatever it takes to come up with the 5 grand.


28 posted on 02/24/2013 9:01:16 PM PST by Terry Mross (How long before America is gone?)
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To: ducttape45

Guess I should have read better. I thought you said it was worth $53,000. With the added information I have to ask why would you want to buy it? It sounds like a money pit. I’d spend $5,000 on an RV before I bought the house.


29 posted on 02/24/2013 9:09:11 PM PST by Terry Mross (How long before America is gone?)
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To: ducttape45

That stinks, I’m sorry to hear about that. A bankruptcy in 2004 should have met the end of credit history by now (over seven years past), and you’d be treated as a clean slate, so there has to be more to the picture. But anyhow, if the reality is you have to move, maybe you might look into one of those ubiquitous rent to own dealies, or just go rent elsewhere. When the good Lord shuts one door, others may open that are better.


30 posted on 02/24/2013 9:13:46 PM PST by HiTech RedNeck (How long before all this "fairness" kills everybody, even the poor it was supposed to help???)
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To: ducttape45
If you know who is the lender for the house (mortgage holder), you may be able to ask if they would do seller financing.

Contacting the bank directly means they don't have to pay a REALTOR more money on a property they're already losing on.

Plus, you're currently the tenant and you're less likely to steal all the copper wiring for crack money and flood the basement if you have an interest in the property.

As an aside, if all else fails and you're not able to purchase, you may be able to get them to do "cash for keys." In other words, you move out all your stuff, leave the house "broom clean" and un-destroyed and they pay you a nominal amount $100-$300(?) to turn the keys over to the REALTOR. More people than you can imagine take a hammer to the walls, flood the basements, steal whatever they can (fixtures, wiring etc) before vacating the premises......I would say, it is mostly tenants that do this. They paid the rent and the landlord pissed it away so they are going to "show them," or get their "revenge."

Every day the bank has the property, once it's foreclosed on, it costs them money. They pay REALTORS to do the BPO (Broker's Pricing Opinion) to determine from the outside how much the bank could get for the sale. They have to pay for the trash-out (whatever you leave behind has to be removed and junked - generally be insured contractors).

The lawn has to be mowed/maintained. If there is snow in your area, the driveway/sidewalk etc needs to be cleared. If there is a danger of the pipes freezing; they need to be drained, or if the bank can get more money - the heat/electric needs to be on.......this all costs $$$ $$$ $$$. If the bank feels it is worth it, they may pay for certain repairs, or for the house to be cleaned.

The longer the house sets on the market, the more the bank has to spend, AND it generally means the lower the sales price. If the bank has multiple houses in the same area (doesn't even have to be the same street) that are foreclosures, that brings down the other values as well.

The reason I'm saying this, is because if you are armed with this information, you may be able to manipulate the bank into lending to you.....they may want you buy PMI in with your loan to help insure against you stiffing them on the mortgage.

I haven't done foreclosures (as a REALTOR - and foreclosures, aka REO was ALL I did) in over 10 years now; however, the biggest thing the banks would stress to the homeowner was "call the bank." If you can't make payments "call the bank." If you need to renegotiate terms, or can't make a full payment, "call the bank." I felt like the Grim Reaper when I would o around handing out the notices for the bank.....the only thing I was allowed to tell people was "call the bank." Out of all those times, I only had two instances where the people said they would "call the bank," and only two instances where the house wasn't foreclosed on shortly thereafter.

Take all this with a grain of salt, as I said, it's been awhile since I've dealt with this sort of thing.

31 posted on 02/24/2013 9:48:40 PM PST by Repeat Offender (What good are conservative principles if we don't stand by them?)
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To: ducttape45

I know you can’t short sale your house to a relative.

I imagine you can’t short sell it to yourself either.

It that were possible, the lender would be better off just taking off most of the amount owed and modify your mortgage down to the short sale price.

Better check it out and see if it is allowed to SS the hse to yourself.

If all else fails, I’ve heard that ducttape can fix anything!


32 posted on 02/24/2013 10:39:12 PM PST by Syncro ("So?" - Andrew Breitbart The King of All Media (RIP Feb 1, 1969 – Mar 1, 2012)
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To: ottbmare; Syncro; Repeat Offender; HiTech RedNeck; upchuck
Here's another sticking point in all this. I have been allowed no contact with the investor or the bank, at all! I don't know why but I've been kept in the dark, literally, on anything that is happening behind the scenes. What is happening now is in stark contrast to what to me back in 2008 when the same thing happened to a townhome I lived in. In that case, I had total contact with the bank and knew exactly when I had to move out. Not this time.....

I know how that sounds but I still feel (and I can't explain how I feel this way) that this house should be mine. It's not a moneypit. True it needs some work, but for my purposes it is just what I need. As for the fees, the investor is paying all that. That much I do know. I've been told to have $10,000 ready to go and the house in mine. I appreciate all your comments and I will check out that website mentioned in one of the posts.

Anyone else out there with a suggestion or two?

33 posted on 02/25/2013 2:57:43 AM PST by ducttape45
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To: ducttape45

One thing you need to be sure of is the tax situation. Depending on where you live, you may be liable for all of the back property taxes (as the new homeowner) and for all of the closing costs. It might cost considerably more than the sale price. Check with your realtor on this, but you’re probably going to need something closer to $15,000 to close.

As far as getting a loan from a relative: I’d go into this as if you were getting a loan from a bank. Give them 10% interest and set the payments with a direct deposit into their account. You may be able to talk someone into it as a true investment, but they’ve got to see a 10% return to make it worth their while. (And be realistic. Don’t set yourself up with too short of a time frame so that they aren’t disappointed if you fall through. Make SURE that you can pay it back on time.)

As for your bad credit - going in with 33% down on a secured loan would help a lot. I’d try again. If you’re married, put it in your wife’s name only.

That’s something else you could try. If I were loaning that much money to a friend/relative, I’d be much more comfortable if the property were put in my name. (Plus, they could get a lower interest rate than you can.)

You get a 10 year loan at (say) 5% interest and pay $159 plus taxes and insurance. They pay nothing upfront and use your $5000 as the down payment. You give them $100 a month for helping you out (and saving you at least that much in interest by putting it in their name). When you pay the loan off, they sign over the house to you. It would actually be a boon to their credit and they could write off the interest payments on their taxes.

Here’s the sticky part. THEY actually own the house. THEY are responsible for the payments. Their credit and reputation is on the line. So if you screw up, they have the right to kick you out and secure their property and you’re out a house and your $5000. (As they should) But they can get renters to cover their butts until they can sell the property and get out on their own.

That’s how you sell the idea. They have nothing to lose. If you make good, they make $1200 a year free and clear for the life of the loan. If you screw up, they own a house that they can rent out for only $350 a month and make a profit. They have an investment property.

Personally, I’d do this (depending on the location of the house) if I could afford the payments in case of default.

And yes. It ALL has to be in a notarized contract.


34 posted on 02/25/2013 3:02:21 AM PST by Marie ("The last time Democrats gloated this hard after a health care victory, they lost 60 House seats.")
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To: ducttape45

Unless that realtor actually represents you meaning she is contractually obligated to you she is not representing your interests, she is representing seller’s interest.

You are being kept in the dark for a reason. Suspicion would be that property would fetch considerably less at auction than the amount she’s wanting you to pay.

The whole deal sounds screwy. Don’t do it, imho.


35 posted on 02/25/2013 3:32:22 AM PST by RegulatorCountry
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To: ducttape45

Hello ducttape45.

Can’t give you my credentials without divulging personal info, but let me say I have a mountain of cred on this topic.

First of all, it seems you want that particular house because it’s highly convenient to own it. Looks real good. Good enough to do some very inconvenient things and risk getting into a most uncomfortable situation for both you and your nest egg.

Please take a cold shower. There are better houses, cheaper ones too, and better locations.

Now the assorted advice. Take your pick.

Advice 1. Nice work avoiding rent and building a nest egg. This won’t endear you to the bank. ANY bank. They would ask to see your records and notice that you failed to pay rent to anyone. Not that the bank, or any bank, will give you the time of day. “Call the bank” was a great suggestion once upon a time. Today, sterling credit does not get you a loan on a fixer upper REO. Don’t waste your time. Banks are obligated to shed their REO, but they don’t want to play games with deadbeat tenants and risk derailing the sure thing: foreclosure sale. I repeat, they are obligated to shed the property and would have some splaining to do if they took it off the schedule at the behest of a “tenant.” So...forget calling the bank. You haven’t credit, you haven’t a good track record, your rent payments aren’t in escrow. The house wouldn’t pass inspection, wouldn’t meet the loan-to-value ratio, would make the underwriters laugh.

Advice 2. Hang onto your $5000 and go to the foreclosure sale. There’s a good chance nobody else wants that house and you could get it for 5. Don’t forget they will want the back taxes. Remember that ultimately your fate may be decided by code enforcement or local tax office. Do you know what is on file at code about the house? What the taxes are? If you go to a sale without doing that homework, you are likely to get shorn if not skinned. And for what? A house that looks convenient to you after months of not paying for it.

Advice 3. Do NOT take your $5k to the sale. Tuck it away for emergencies, or for a security deposit on your next rental, which could be soon. Although in most areas there are laws protecting you, as an occupant, from eviction (as long as you PAY), a new owner could evict you rather quickly, by a phone call to code if he’s in a hurry, or by notice he intends to reside there.

Advice 4. Know that the bank has the power to evacuate that house of all your possessions, take them all to a landfill or let the trash hauler distribute them to whomever, and there would be nothing you could do about it. So don’t leave home unattended. They would also get your $5k if it’s in the house. You are playing with fire. They can strip you of everything you possess and the sheriff will help them.

Advice 5. Broaden your horizons. You have a job and several times more income than I enjoy, but I found a wonderful house and paid cash for it and it’s fun fixing it up on a shoestring budget. All you really need to do is think out of the box. Think you can live anywhere else; transfer; shop around; parlay your $5k into ten or fifteen and maybe THEN you can blow five on a substandard house full of warts and see if you enjoy fixing up a house while holding down a job and looking over your shoulder for the code officer.

Advice 6. Borrow the money from some friend who will never forgive you for sucking him into the pit that was only going to cost him $5k which you would pay back, until you couldn’t because of repairs, code, utility hikes, taxes...Make sure your friend is disposable, non-violent, and has no lawyer friends or relatives. This house has the potential to cause you a great deal of inconvenience that you probably have not begun to imagine.

Advice 7. Consider that if you do nothing, and if you don’t suffer a total cleanout while at work one day, you could stay there rent-free for a few more months. Enjoy this advantage, it is not given to people who have a prayer of borrowing money. No lender would fail to notice it in your records, and it will dog you like a bankruptcy, which by the way they DO notice, no matter how long ago it was.

Advice 8. You can file bankruptcy again in a few years. They know that too.

Advice 9. Stiff the utilities and the credit cards and everything else for a couple of months and you’ll have another $5k. Negotiate payment plans later. Laugh at their pain.

That’s my .02, neighbor. Unlove the house asap. Get over it. Home ownership is no perpetual honeymoon, and you’ve done pretty well for yourself as a tenant. Pretty well indeed.


36 posted on 02/25/2013 6:03:37 AM PST by HomeAtLast ( You're either with the Tea Party, or you're with the EBT Party.)
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To: RegulatorCountry

“You are being kept in the dark for a reason.”

Nine months of skipping rent makes a person glow in the dark. To a lender, a realtor, a banker, such a person is positively radioactive.

There’s also a whole community of flippers known to the average realtor of junk property. Could well be the realtor already has other plans for this place, regardless how concerned and sympathetic she claims to be. (Call me cynical.)


37 posted on 02/25/2013 6:15:16 AM PST by HomeAtLast ( You're either with the Tea Party, or you're with the EBT Party.)
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To: ducttape45
just honest serious posts

Walk away. The county may have reasons to condemn this property. Other considerations could be feasible but first separate the lot appraisal from the improvement appraisal.

38 posted on 02/25/2013 6:51:16 AM PST by MosesKnows
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To: ducttape45

Other people to turn to:

Got any grown children? If they work they might be interested. Offer to put them on the deed. I would recommend you take only ONE child, if you’ve more than one, into such an arrangement.

Parents? Ex-spouse? Don’t laugh, the parent of your heir might be interested.

Neighbor. You say you’ve a good neighbor. You could tell this person that it is in their interest to purchase a property next door. It’s like choosing your neighbor, which is way better than taking pot luck. Ask if they can buy the entire property and give you a rent-to-own deal, maybe with an option (ie, you pay them something to buy the place and give you either a lease-purchase, or a mortgage, or a contract for deed). If it were a contract for deed, it would be very safe for the neighbor; you don’t pay, they can toss you out quicker than if they’d given you a lease-purchase or a mortgage. If you do pay as promised, they continue to have a nice neighbor instead of a Pacific Heights experience.

Church. Ask the pastor/whomever of your church, presuming you have one? to buy the place on the same general idea as you’d ask the neighbor. Just because they’re a non-profit doesn’t mean they can’t do business. However, they would need to use their own cash, the place can’t be financed.

Credit union.

Again, these are suggestions I make without approval. I personally think only a hopeless sap would lend money to someone with a recent bankruptcy, bad credit, student loans, low income, double vision and a failure to pay rent for 9 months. For a professional lender to do so would amount to criminal behavior.

PS: About the insulation...Indiana may have a weatherization program. In my state you can, if poor enough, get your house fluffed up free of charge.


39 posted on 02/25/2013 7:36:35 AM PST by HomeAtLast ( You're either with the Tea Party, or you're with the EBT Party.)
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To: ducttape45

Have you considered taking the 40,000 loan route, and either a) using the excess to make improvements and/or repairs, or b)repaying the bulk of the loan immediately, or c) some combination of a and b? You would get banged for higher costs on the transaction than on a $6k loan, but it may be worth it to you.


40 posted on 02/25/2013 7:38:21 AM PST by SquarePants (Everywhere is walking distance if you have the time)
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To: MosesKnows
Walk away. The county may have reasons to condemn this property.

A very good point. When you consider purchasing a property, you always look at the neighborhood and the local conditions. Ask yourself how bad a property has to be before the "condemned" sign goes on the door. Some towns, it has to be falling into the street or the playground next door before they sticker it. Others, any excuse if the right insider wants it. And the property insurance, good luck with that.

Experienced fixer-upperers know this stuff cold. A first time buyer, a minnow in a most Hobbesian sea.

41 posted on 02/25/2013 7:47:10 AM PST by HomeAtLast ( You're either with the Tea Party, or you're with the EBT Party.)
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To: MosesKnows

I have seen people arrested and threatened with jail time for failing to demolish their condemned property. Poverty is no excuse either.


42 posted on 02/25/2013 7:50:19 AM PST by HomeAtLast ( You're either with the Tea Party, or you're with the EBT Party.)
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To: SquarePants

There’s no way any of the banks will ok a loan of $40,000 on a house that is for sale for only $10,000. I kind of wish they would, I really do.


43 posted on 02/26/2013 2:59:11 PM PST by ducttape45
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