Hi Edith-
Erica Pittman-Gaynor of Keller Williams here. As in any Real Estate transaction, and most importantly on a Bank-Owned, If you're going to make an offer you need to have a Realtor working on your behalf. There are so many legal ramifications if you don't. If you have a Realtor, they should be able to guide you through your options. Every lender is a little different, there are constant changes in the lending world; requirements for certain loans, changing programs available, changes being made to the credit score companies, etc. etc. As a Realtor I work side by side with several of my favorite, trusted lenders. I couldn't conduct my business if I weren't in constant contact with them. I would be happy to connect you with them as well as guide you through the process and your choices, if you need the help.
Just let me know. Have a great day.
Erica

You could use a Fannie Mae HomeStyle Renovation or a FHA 203k loan.

I am a Loan Officer. If I can be of assistance, please let me know.

Martin.Smith@Emeryfed.com

Martin

Hi Edith Pearl,
This kind of thing happens a lot with distressed properties, and there may still be a few financing options for you. Have you asked your Realtor for a referral to a lender familiar with the rehab loans that are available in our area?...or if you aren't already represented by a local buyers' agent feel free to contact me for more information.
Best of luck,
M.C. (Marycatherine) Dwyer
Century 21 Showcase REALTORs

Edith_pearl,

I understand how you feel. You see the potential and want that house.

The problem is the current market and state of real estate lending industry. The lender sees a home that is not habitable or not up to standard to grant a loan. Should you not be able to affect all necessary repairs after moving in the house would not be up to market value and the lender could get stuck with it again; the same problem they face now.

It’s a question of risk and lenders are no longer in the risk business. They want to collect interest not risk their money.

This house may not be an option for you right now. Find a house that you can finance, buy it, and make it a home. Prices are down, rates are down, mortgage interest is still tax deductable (see your tax professional for tax advice) and it may be better to buy a house with less potential but is habitable and financeable.

There is always tomorrow to look for opportunity. Stop paying someone else’s equity and start building your own equity. Consider another house as a starting point on the road to eventually owning the home of your dreams.

Best of luck

R. Todd Scott
Senior VA FHA Loan Specialist
iFreedom Direct
CA & TX Loans