Posted by Phil Pelletier on April 25, 2006 at 01:17:15:
There are investors who will loan you enough money to do what you want as well as pay them back each month with their own money while your credit score improves. All you have to do is deed them your home (they are the titled owner with the loans still in your name), and then you will lease the home back from them with a recorded option to purchase the home with equity still remaining in the home.
You owe $65K right now. The home will appraise at $110K. Find an “equity partner” to buy your home for a cash payment of $10,000 directly to you. You turn over title of the home to them. You live in the home and make repairs necessary. You pay the “owner” $250 per month (out of the $10,000 they gave you) for 12 months. Then, after all the dust has settled (loans are all current, credit has improved, life is more stable), you apply for a loan to “refinance” the home you have “leased” from the “owner” the last 12 months. You pay off the first mortgage, the second mortgage, the $10,000 you owe the “investor”, plus the “fees” the investor will charge you on the back end of the deal ($2,000?). Sounds expensive, but remember, the investor came in with cash that you needed to not only repair your home, but cash to pay him each month to service the debt. He took the risk when you needed money. It’s expensive, but it works. If you want to talk more about it, send me an e-mail at firstname.lastname@example.org and we can exchange phone numbers and discuss it in person.