Posted by JohnBoy on April 06, 2002 at 11:00:54:
From what I’ve heard section 8 allows you to buy on a L/O where they will still pay the rent. So you might look into that.
But if your main goal is to just get cashed out then I would try to sell it out right first.
Run an ad saying “Possible Seller Financing”.
Then have your potential buyers fill out a 1003 credit app. Take that to your mortgage broker and have him/her pull their credit and see where they stand as far as being able to get financing.
There are lots of 100% programs out there where buyers can get 100% financing with FICO Scores as low as 580. There may even be some that go a little lower than that.
If they don’t qualify for 100%, then see if they could get 95% or 90% or whatever. Then if you had to carry back the difference as a small second to help them qualify. Then you get cashed out with most of your money, if not all of it, and move on.
There is a lot of loose money out there right now and most people with low scores can qualify for some type of financing. Hook up with a good mortgage broker that deals with a lot of credit challenged borrowers. They will have lots of sources to get these type of borrowers financing.