Financing in Clearwater>Question Details

Lindy79976, Home Buyer in Clearwater, FL

I'm looking to find a lease-purchase, land contract, owner financing. I'm a teacher & have a house in foreclosure & divorce am left

Asked by Lindy79976, Clearwater, FL Fri Jun 3, 2011

w/ bad credit.

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Answers

4
Be careful whose advice you listen to:

ADVICE
My only suggestion is none of the above, because they all need some sort of halfway decent credit.
TRUTH
No they don't. the possibilities you mentioned are all viable for people with poor credit. True, better credit helps. But to avoid the strictures of conventional lending, lease-purchases, land contracts, and owner financing all are possibilities. You've done some homework. Good.

ADVICE
Based upon your down payment, you may be able to get a HARD MONEY loan, which you can convert in a couple of years to a regular loan once your credit gets better.
TRUTH
Hard money loans are made based on the equity in the property. Unless you're buying a home for 50 cents on the dollar, forget hard money loans. And hard money loans are made for investment properties, not primary residences. And hard money loans typically are for 6 months. They're very short term. "A couple of years"? No way.

ADVICE
But I would recommend you do a short sale immediately, not a foreclosure on your home.Short sales are not as bad for your credit, than foreclosures.
TRUTH
It's true that short sales aren't as bad for your credit as foreclosures. But they take a while and at best are very unpredictable. If there's time, give it a shot. But don't get your hopes up.

Bottom line: I hate bad advice.

As for how to find lease-options, land contracts, etc., I wrote a blog on that. Go to http://bit.ly/findaleaseoption

Hope that helps.
1 vote Thank Flag Link Fri Jun 3, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Don is right, Lindy--a hard money loan is NOT the way to go--until recently I had a friend's home listed as a short sale, because she was forced to move out of state for work and could not sell the home for what she owed on it--we had three good offers which the lender refused. It is now going to auction as a foreclosure because the (hard money) lender says it makes more sense to take it back and rent it until the market comes back.

These are the worst loans and the worst type of lender to deal with--ONLY professional investors should even consider it, not for homestead properties--you would be much better off renting--less money up front, likely less per month right now.

If your foreclosure has already happened, your have seven years bad luck (most likely) in terms of getting another loan--factor what you would be paying monthly for a loan you would have qualified for, income-wise, and do your best to find a cheaper way to live for a few years. THEN, taking the money you saved (the difference between what you can afford and what you paid), buy something you really want--you should have a decent enough down payment by then.

Do NOT buy a car, do NOT open any credit lines, and live below your means for a while...
0 votes Thank Flag Link Sat Jun 4, 2011
My only suggestion is none of the above, because they all need some sort of halfway decent credit. Based upon your down payment, you may be able to get a HARD MONEY loan, which you can convert in a couple of years to a regular loan once your credit gets better. But I would recommend you do a short sale immediately, not a foreclosure on your home. Short sales are not as bad for your credit, than foreclosures. I would be happy to discuss that with you, if you would like.

Bill Szydlowski
Future Home Realty
813-323-4443
Web Reference: http://www.tampamyhome.com
0 votes Thank Flag Link Fri Jun 3, 2011
Good Evening Lindy:
First, I am so sorry to hear of your situation--this is not a fun place to be!

Lease-options, etc. can be very tricky business, and often may turn out not in your favor. Calculate all of the costs involved in renting vs. trying to buy this way before pursuing this!

I do have a townhome in Dunedin that has potential for owner-financing, and a house in Holiday--please do check my website (1515 Bayshore and 3933 Darlington are the listings), and if you think you might be interested give me a call and we'll talk more. Please have all financial information ready--the same stuff a bank would require:
pay stubs, tax returns, bank statements, financials (all bills, credit cards, etc.--a credit report if you have one)
0 votes Thank Flag Link Fri Jun 3, 2011
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