Creative financing solution needed - Posted by Doc
Posted by Doc on March 09, 2002 at 12:30:10:
I started looking at REI as a way to get a property I wanted to buy financed. Having read just about everything I can find online, I think I’m going to start looking at it as a way to generate income. This stuff looks like work, but it also looks like a way to make serious cash in the long term. First, I’ve got to solve my own financing issue.
Need some advice folks. I’m not an investor, I’m a homeowner looking to buy what my wife and I think will be our “forever” house.
We’ve got a $175K house in a very nice suburban neighborhood in Texas. We’ve got the best schools in the region, low crime, etc. Our problem is we bought it new two years ago and it’s the Model Home for the neighborhood with all the upgrades. Therefore, it’s the most expensive per square foot and we can’t get out of it for a few years without losing $15-20K or so.
I’m relocating with work and we’ve found a beautiful piece of property near my new job. (This is the last move with the company.) The asking price is only $90K and we can now make those payments easily. The couple that owns it has to relocate for work and they’ve only had it a couple of years, so they can’t tote the note for us. They basically need some money to cover them moving out.
Our problem is that, due to both of our parents being repeatedly hospitalized over the last couple of years, our credit is shot! Our middle credit score was 546 at last check. We’ve managed to keep anybody from losing their house, but my wife and I had to file Chapter 7 (finalized last October). Honest, I’m not really a bad person!
We have since refinanced our mortgage (via VA) and are planning to rent our current house out for a small monthly profit.
We now have basically no bills but obviosly can’t get a bank to talk to us. We can’t get financed until at least October (1 year after filing) and we need a place in June. We could rent something else and try to get this place in October but we’re afraid of losing it to another buyer.
We’ve got 10% to put down, it’ll be a relocation package so no seasoning on the down payment money. Our income is $6300/month so debt to income ratio isn’t a problem.
Got any ideas on how to make this work? Nobody will talk to us within a year, some say two, of BK. Anybody know of anyone who’ll talk to us?
Thanks in advance for any help you can provide.