Need professional help!!!! - Posted by HLR

Posted by DONALD on May 08, 2000 at 22:44:47:

As john-boy said do that, make the payments by checks and keep the returns checks safe, just as i did i got a mortgage 4 months ago from aames mortgage co. i had a forclosure on my credit report from 1995 .because i had checks to show the loan broker that i had turn the leaf over to rebuilding my credit, i got the loan at 11.685% and after one year of paying on time i will be able to reduce the 11.685% to a lower rate

Need professional help!!! - Posted by HLR

Posted by HLR on May 08, 2000 at 18:30:31:

First, I would like to thank those of you who passed on encouragement and ideas to me in response to my post a month or two ago.

Here’s my thoughts and situation. We live in Illinois. Due to our bankruptcy 2 1/2 years ago, we can not get a mortgage loan. We are renting a 3 bedroom house from a retired couple who live next door. We have a very close relationship with them. This is a small town and they helped my husband get a good job. We have been in this house for 3 years. We love it here. It’s 2 blocks from the grade school and there are 14 children in our block alone. It’s wonderful for our kids. We would like to buy this house. We have never mentioned the idea to them, but they are beginning to say things that indicate they are tired of the taxes and insurance and upkeep of the house(s), (they own several). They are aging, and have medical expenses, etc. Is there a way for us to enter into a contract with them to purchase the house, without getting a bank involved, yet? Perhaps for a certain number of years until a bank would be willing to talk to us and then we could transfer over to a more conventional mortgage. My over simplification of this is, we continue to pay them our monthly payment, but we take over responsibility for the taxes and insurance and upkeep. Is this possible? And if so, are there any advantages for them to do it this way?

Re: Need professional help!!! - Posted by Laure

Posted by Laure on May 08, 2000 at 23:17:59:

Who told you that you can’t qualify for a bank loan??? If you have kept your credit clean since bankruptcy, you can qualify for a FHA loan as soon as two years after bankruptcy and with Low interest rates. Go to a good broker. I send a lot of my buyers to Countrywide home loans.

I am in Illinois also.

Laure :wink:

Re: Need professional help!!! - Posted by JohnBoy

Posted by JohnBoy on May 08, 2000 at 22:22:46:

You can buy on a contract with any seller willing. If you’ve made the rent payments on time and the landlord is ready to sell then a contract sale could be a good way to go.

Buying on a contract would make you responsible for paying principle and interest, taxes and insurance. You would take the agreed upon purchase price and interest rate and amortize that over 30 years just like a regular mortgage. If the seller only wants to carry for a few years then the terms of the contract would be for x number of years with the remaining principle balance due. During this time the taxes and insurance would be divided by 12 months for each year and paid in addition to the principle & interest. This could either be paid directly to the seller or set up to where the money is held in an escrow account. When the taxes come due each year the monies would be there to cover the taxes and paid from that. When the insurance comes due you would forward the annual bill to the seller or the escrow account to cover that cost to paid.

This would eliminate any repairs and taxes the landlord has to deal with since the buyer would be paying for all this just like they would when getting a mortgage through a bank.

The difference with buying on contract vs. a mortgage through a bank is that you wouldn’t get title to the property until the contract is paid in full. With a contract, title remains in the sellers name. The buyer has an equitable interest in the property.

You say your bankruptcy is 2 1/2 years old. There are lenders out there that finance with BK’s that are 2 years old from the date of being discharged. You need a good mortgage broker that works with a lot of lenders offering different types of programs for this. If your credit history has been good since the bankruptcy you should be able to obtain financing if you have the income to qualify on the amount you need for purchasing the home.