Need Help: Bad Credit , Good Credit ?? - Posted by LJ

Real Estate Investing Real Estate Financing
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Posted by Nate(DC) on April 03, 2002 at 22:20:13:

Sure, if she wants to buy it. Be aware that not all lenders will do this transaction because it is not an arms length sale. Just make sure you disclose it up front and if the lender doesn’t have a problem, then, fine!

NT

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Need Help: Bad Credit , Good Credit ?? - Posted by LJ

Posted by LJ on April 03, 2002 at 18:18:47:

I have a house that I have lived in and owned for almost three years now. I want to rent it or sell it with an owner finance lease option. The only problem is that I need my equity out of it now, but I have bad credit and they want to charge me 12% for refinance. Here is my idea, but I am not sure it will work. I am getting married soon and my fiance’ has excellent credit. What if she were to buy the house from me?

Here are the stats on the house:
appraised at… $50k
payoff amout is …$15k

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Re: Need Help: Bad Credit , Good Credit ?? - Posted by GL(ON)

Posted by GL(ON) on April 04, 2002 at 07:27:35:

If you want to sell it and you need the equity now, forget the fancy stuff and sell it for cash. It’s not that hard to find a buyer these days.

If you want to keep it and refinance, put it in both your names. This is routine and will not raise any eyebrows at the bank. When you go to refinance tell them it is for something that is music to their ears, like you need the extra money for new furniture because you are getting married.

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Re: Need Help: Bad Credit , Good Credit ?? - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on April 04, 2002 at 24:57:00:

If she buys it, don’t get a loan that says she has to live in it for 12 months. That is if you are going to go through with l/o’ing this house and move onto another place.

Talk to a broker first though and ask if when you get married, with both incomes and your credit histories, can you refinance instead. It might be cheaper to refinance and then l/o the house.

The point, check both ways in case one way saves you money for your purposes of what you want to do with the house, and the money gained from it.