Creative financing solution needed - Posted by Doc

Posted by Terry(IN) on March 10, 2002 at 12:36:14:

Go to and fill out the buyer’s application using Registration #17849. Can’t guarantee anything, but I think your situation might be workable.

Also, instead of renting your current property, why don’t you lease/option it. Get a sizeable option consideration which you can add to your downpayment monies. A person who is leasing with the option to purchase will normally take better care of the property than a renter. This is especially important when you won’t be living in the area. When a tenant is a renter, you have to take care of all maintence items. If they are leasing with option, you will require that they take care of all maintance issues.

Best wishes in your relocation process,


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.


Re: Creative financing solution needed - Posted by Jon H.

Posted by Jon H. on March 11, 2002 at 23:13:35:

I go with the lease option idea. I have a BK from a divorce and sold all my real estate to settle with the X. I was told to wait 4 years then I could qualify for a FHA at par. After waiting 4 years I was suprised (almost upset) how owners contracts and lease option people did not even want to see my credit…I think 75% have not even asked me.
I also send them the lease opion contract and it does not have a clause to check credit.
Had I realized how few people looked at details I would own a lot more realestate.
If the owners of that one house will not play ball, please look for a different house…make enough offers and someone will bite…best of luck.

Re: Creative financing solution needed - Posted by Senora

Posted by Senora on March 10, 2002 at 23:03:27:

What state are you in? I know of a source, but they only do Minnesota.

Re: Creative financing solution needed - Posted by Bruce Lawson

Posted by Bruce Lawson on March 09, 2002 at 17:04:49:

Hi Doc,

Take a look at they have programs available for purchasing homes with normal 30 year notes, even if you pay a bit higher interest rates for now once you get straightened out with your credit you can refinance.

Bankruptcies can be removed from credit reports if they are reported incorrectly just as with any entry on your credit reports they can be removed as long as the information does not comply with the Fair Credit Reporting Act.

Contact me if you care to discuss this in greater detail.


Bruce Lawson

Re: Creative financing solution needed - Posted by JoeS

Posted by JoeS on March 09, 2002 at 14:23:15:

Buy the new place subject to, putting down some cash. (you said they need cash).

Re: Creative financing solution needed - Posted by Doc

Posted by Doc on March 11, 2002 at 09:06:27:

In in TX but the house I want to buy is in KY.

Thanks for your time.


Re: Creative financing solution needed - Posted by Jon H.

Posted by Jon H. on March 11, 2002 at 22:52:28:

Dear Bruce,
I went BK 6 years ago and have got every bad account off my credit report except my BK, I can not even getting the credit reporters to correct assets and liab’ sum on my BK which are wrong. I am at a loss what to do…do you know any tricks…Thanks for your time.

Re: Creative financing solution needed - Posted by Doc

Posted by Doc on March 09, 2002 at 16:46:31:

Thanks for your response. I agree that would be an ideal setup. However, I think they’re looking to get clear of the property. What I really need is to find a lender who would at least entertain the idea of funding my outright purchase. Would you happen to know of any?

Thanks for your time.