PLEASE HELP!...need to save my house! - Posted by Roy

Posted by Roy on September 13, 2003 at 23:43:55:

At the time, I thought I could easily “live up to my obligations”…no lecture needed…Just need some possible solutions…How about getting a private party to take a 2nd for the 15k I need…I’m not a R.E.I. guru…just a guy doing a couple a deals a year that needs some help…Please, anymore constructive suggestions?..Thanks.

PLEASE HELP!..need to save my house! - Posted by Roy

Posted by Roy on September 13, 2003 at 14:58:54:

First of all, thanx to all that reply…I bought a house 6 months ago, owner financed $80,000, 6% interest, A.R.V. $130,000-$150,000?? money down…the kicker was that I agreed (with seller) to pay the back county taxes on the house (about 10k) and the school district taxes (about $3,500)on the two wooded lots behind it…(i want to keep the lots if at all possible too)…I put the house in a land trust (used forms from one of my fellow R.E.I.)…I made arrangements for the school taxes and have not had enough income to keep that up…QUESTION: Can I get a home equity loan with the house being owner financed and placed in a land trust (me as benificiary)…to pay the taxes?..Oh yeah, my credit is terrible and I have short time on present job…Any suggestions will be appreciated…Thank you for your time!

Re: PLEASE HELP!..need to save my house! - Posted by mE

Posted by mE on September 16, 2003 at 21:29:03:


Thanks for the replies…they really helped. - Posted by Roy

Posted by Roy on September 14, 2003 at 11:12:33:

(nothing follows)

Consider refinancing it … - Posted by Randy

Posted by Randy on September 14, 2003 at 09:50:08:

Your question regarding a ?Private Party? to take a 2nd for the $15k you need is certainly a possibility, however many would not consider it, too low of an amount to mess with. Consider refinancing it with a new ?Seller Financed? note. You could buy it from the trust at 75% LTV=$90k new first lien. Pay off the underlying 1st $80k and have $10k for the other taxes.

The primary reason for this recommendation is a new 1st at 75% LTV is allot more attractive to an investor than a $15k second. With this type of LTV private money will allow very low FICO scores (500 or so). The disadvantage is the interest rate will most likely be higher than your present 6%…

Re: PLEASE HELP!..need to save my house! - Posted by B.L.Renfrow

Posted by B.L.Renfrow on September 14, 2003 at 09:00:45:

As to whether you could get a home equity loan, I would think that would be more affected by your “terrible” credit score than by title being held in a land trust. Of course, none of know what you mean by “terrible.” Why not contact a good mortgage broker or some lenders, have them pull your credit and tell you whether or not that is realistic?

Even if your credit isn’t as bad as you think, a lot depends on the numbers. You say the property is worth $130-150k ARV (that’s quite a range). But what is it worth in its’ present condition? That’s what a lender would look at.

I take it from your post you were able to pay the county taxes on the house of $10k, but you do not have the $3500 to pay the school taxes on the additional lots. Is this correct?

If so, and since you want to keep the house, you could consider selling off the additional lots. You say you’d like to keep them, but that may not be the best choice. Or since you say they are wooded, can you sell off some timber to raise the money?

Brian (NY)

Re: PLEASE HELP!..need to save my house! - Posted by Roy

Posted by Roy on September 13, 2003 at 23:54:12:

P.S…I may have not made myself clear…This is my personal residence now and not an investment to flip or sell…This house is perfect for my family…3/3/2 with loft and an acre of woods behind it and it is a block from a park and the lake in a nice area…Need advise on how to keep it…Thanks.

Re: The answer - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on September 13, 2003 at 16:51:12:

is NO, at least 99.44% of the time on your home equity question.

My suggestion is sell while you can and reap whatever profits that you can. In the future do not make agreements that you can not live up to.

Clean up your credit.

You might consider selling a part interest in your deal to an investor with some cash. This could get your deal back to being stable, and then sell for your profits.

Sold answer. Latin anybody? - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on September 14, 2003 at 10:25:57:

Brian L. Renfrow–(NY)----------------

I think that this is a solid response. Two or three ideas that might be helpful. You read, you think, you answer. What’s that in latin? readum, cogito, openmouth? No… let’s see. readem, cogito, keyboardem. Hmmm.

Anyway, I think a good answer occasionally deserves praise. This is yours?

Good InvestingRon Starr