Financing in 78256>Question Details

Jasmine, Home Buyer in 78256

Home Equity Loan or regular home loan?

Asked by Jasmine, 78256 Tue Dec 25, 2012

I'll make this as short as possible. Both myself and brother inherited my mothers home, and just recently he has agreed to let me buy him out....$50k. I am currently separated from my spouse and filing for divorce next year. He's retired military and I'm still working to complete my education. I have inheritance that is also pending, however not enough to purchase the home right out. During the last 4 yrs, my husband lost his job decided he didn't want to work but go to school..with that in mind, we lost our home, he moved out last year and I decided to divorce this year. During this time our credit has suffered considerably and though I am working to bring all my scores back up, I need a loan of asap to buy him out. Please note the home is paid for in full. What are my chances and how to I get started if possible?

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You need to talk to your probate and family lawyer about all this.
Typically we suggest you don't buy until you are divorced.

If you don't have income it will be tough to get a loan from a bank.
if you have a foreclosure on your record it will be tough to get a loan.

Probably the best thing for you in some ways would be to allow your brother to owner finance from you.
Or probably better yet, sell the home, split the proceeds, and either go buy a $50,000 house or condo, or whatever you have leftover after the divorce.

Since you inherited the house during your marriage, your current husband may have some claim to the house as well, so the $50,000 could turn into $25,000....this is why you need both your probate and family attorney involved and working together so that you get the best outcome for your specific circumstances.
1 vote Thank Flag Link Tue Dec 25, 2012
Thank you
Flag Fri Dec 28, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
Google 'Hard Money'
Then talk to trusted people and get some advice.....
Hard money loans are very desperate money. But they will do in a pinch if you have an exit strategy....
Exit strategy = Get out of that loan with a real loan..... If you can with the credit.
1 vote Thank Flag Link Tue Dec 25, 2012
Thank you
Flag Fri Dec 28, 2012
Ok.. this sounds like a "Hard Money" type of loan. is probably the best place to start. The interest rates suck pretty bad though.

I would probably work out a deal with your brother and have him "Owner Finance" the $50,000 and you can just make payments to him. You can file the note at the courthouse, and as soon as you get your scores back up, and everything is looking up again... refinance and pay the note off.

If that is not an option, a hard money loan will work, but you will want to pay that off as fast as you possibly can as hard money loans are a bit ugly.

I hope that helps.

Jason C Campbell
Option One Real Estate
Platinum Top 50 Finalist
0 votes Thank Flag Link Wed Dec 26, 2012
Sorry didn't mean to hit flag.
Flag Thu Dec 27, 2012
Thank you. The Hard money loan sounds really scary. I will keep looking around then.
Flag Thu Dec 27, 2012
Please call Hector Argumedo, Vice President of Academy Mortgage, He can give you the best advice on this matter.
Good Luck.
Jose L. Novelo
0 votes Thank Flag Link Tue Dec 25, 2012
Thank you. I will contact him today
Flag Fri Dec 28, 2012
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