We have a portfolio "2nd Chance" loan that allows you to buy again just one day after Short-Sale or Foreclosure. You can only have one on your credit and you will need a 20% down-payment and 660 mid FICO score. Late payments acceptable.
This loan is available in - AZ, CA, CO, DC, FL, HI, IL, MD, MT, NV, NJ, NY, NC, OR, SC, VA, and WA . Loan amounts up to $4 million +
1) If the seller ownes the home free and clear you can do Owner Carry (very very rare in this area)
2) Wrap mortgage. Seller has a mortgage, You give a down payment. Deed is put in your name and you make his payment. Lots of dangers here.
3) Private financing. There are people out there that will loan you mortgage money for 1 to 5 yrs even with poor credit. This can cost you in high down payments and high interest rates.
Many things can change in the market over the next two years. Just as it has over the last two.
Let me know if I can help in person.
David Bochmann CCIM,GRI
It sounds like right now you're really cant afford to buy and own a home with all the additional costs. You may very well want to rent a nice home for the next year to two until your situation and finances are better with the addition of the new child.
Renting is not bad. The owner is responsible for the tax, insurance, irrigation water, Most times HOA dues, and repairs. This could save you thousand a year over buying the same house.
There are many management companies who will not rent from you with a credit ding on your report. Many of them are just looking for application fees. BE CAREFUL WHO YOU WORK WITH. JUST BECAUSE THEY SAY THEY ARE REAL ESTATE BROKERS DOES NOT MEAN THEY WORK ETHICAL IN PROPERTY MANAGEMENT. Do not work with any company that makes you pay a fee up front before showing you the property. They may make you fill out an application, but DO NOT PAY ANY FEES UPFRONT. They will take your money. Make you fill out the paper work. Then tell you that they cant qualify you with a short sale or foreclosure. Even with a low credit score. Many of them will tell you that they cannot give you an answer to your questions about qualifying until they run the app. that the app cost $xxx so you have to pay up front. That is just crap to get your money. They are required to have a set standard which all applicants are judged by. They cannot discriminate. The ethical ones will tell you if you qualify with the short sale going on before they take any of your money.
Most important,,,,,, Be Patient. Don't jump back into another deal that you cannot pay for in 6 or 12 months. THERE IS ALWAYS ANOTHER GOOD DEAL OUT THERE. Agents and owners will try to tell you that this is the greatest deal on earth and you have to act now. DO NOT BELIEVE THEM. Again...... There is always another deal out there. Every day of every year life happens to people and they can no longer afford their properties. There is always another deal.
Again. If you need help. Feel free to call me and we can set down and discuss your options. I have 21 yrs. in Real Estate and 15 yrs. in property management. David Bochmann CCIM,GRI 970-250-0814
My wife and I were keeping up on our payments for 6 months but the bank was not moving the short sale along at all. So we were at the point where we depleted all of our savings and now we have a baby on the way so we are unable to make the mortgage payment anymore. I really wanted to stay current on our payments but there was no way we could and prepare for our first baby. But now that we have missed a payment, it seems that the bank is moving along now with the short sale.
So do you think I could still qualify for a conventional loan given these circumstances. Anybody know of any good lenders local in Grand Junction I could talk to? Thank you so much for all help!
Instead of looking at owner financing, focus on your short sale situation and what it means to you, your credit score and your ability to qualify for a new mortgage. If you've kept up on your payments, you'll be in a much better situation. But I've heard of people being told by their banks that in order to get the short sale approved, they have to miss payments! Makes no sense.
First, if you had to move for work you might get a wave on the short sale and be able to purchase again right now. I would suggest you get with a Mortgage lender and do a PRE QUALIFICATION. They should be able to tell you very quick.
Second, owner carry can be tricky. Does the seller own the property free and clear of all liens? If not they will be doing what is called a WRAP MORTGAGE. These can be a problem as all loans since about 1980 have what is called a DUE ON SALE clause. This means you could put down thousands of dollars on a down payment. Then the first mortgage could call the note, ( even if you're paying your payments on time) and you would still have to go get a mortgage at a mortgage company or loose the house in foreclosure.
Third, most likely the only reason the seller is offering owner terms is because they are way over priced of the current market. They are trying to get you to pay for their bad decisions or mistakes. Be very careful.
Fourth, make sure you get a full title policy before you close an owner carry loan. There could be thousands of dollars of hidden liens they are not telling you about.
It would be best if we discussed all of these items and more in person. Feel free to give me a call and we can discuss this with all your personal facts. This will help to give you accurate advice.
Sometimes if you put a sizable down payment that is nonrefundable, the owner will offer a better interest rate.
I would always consult with an attorney or your tax advisor before signing any papers for private financing.
The terms of the financing are critical, but assuming they are reasonable your cost may be similar to getting bank financing.