Financing in Canadian Lakes>Question Details

Pamela, Home Buyer in Canadian Lakes, MI

we are in the process of a forecloser in Florida. We want to buy a home back in MI, we have 50% down payment, could we get a loan?

Asked by Pamela, Canadian Lakes, MI Sun May 2, 2010

Could we get a loan for the balance? We are talking about $25,000 loan. We both have good jobs. Or do we pay cash for the home?

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Hi Pamela, tell us if you have tried to sell your house by short sale before it went into foreclosure or are you just letting the bank foreclose on it. Also, if you don't mind send me the address of the Florida property (you can email me direct). I am licensed in both Michigan and Florida and I have buyers looking in Florida.

As far as Michigan, maybe rent or find a lease option for a while until you get back on your feet. It will take a few years to get your credit rating back but then again you say you have 50% down. Have you spoken to a mortgage company? The question is a little confusing without more information.

Pamala Bava, Realtor
Real Living Kee Realty
586-675-4653
realteellc@hotmail.com
0 votes Thank Flag Link Mon May 3, 2010
Pamela if you are in foreclosure, you should note that if you buy a new home in your name, that mortgage company or bank that forecloses on you, could obtain a judgement against you and lein that new home. Chances are very unlikely you will be able to get a mortgage, most banks have a minimumj of 50,000 loan anyway. Before you purchase check with a real estate attorney on judgements and what type of ownership you could do to protect your new home.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon May 3, 2010
Pamela,
Government backed loans may not be an option for a while, but hard money or private investor loans may be available with that type of equity. You will pay higher than conventional rates and fees, but it will go a long way to rebuilding your credit after the foreclosure.
Contact mortgage brokers in MI and explain your situation and what you are looking for. With half down and such a low balance you may also find some willing owner financing. You'll need an agent willing to work a little harder than normal to find a willing seller and your home choices will be fewer, but it may be possible. Good luck in your move.
0 votes Thank Flag Link Sun May 2, 2010
Pamela;

Has there been a foreclosure judgement? Do you think you could either sell this property or do a short sale? Foreclosures do stay on your credit history for at least 3 yrs. Therefore, If possible. II would normally advise my clients to do a direct sale (if the property is saleable and they have time), or do a short sale (It has not been established how to report a short sale on your credit report.) I assume that you've been late, those normally gets taken care of rather quickly.

With 50% down, you do have some of those developers who will be willing to hold your mortgage, but be prepare to pay a high a high interest rete.

Good Luck!
0 votes Thank Flag Link Sun May 2, 2010
No, you may need to wait some time before you can apply for another loan--as far as the lenght of time--a lot will depend on the circumstances that led you to your foreclosure--provided you repaired your credit, etc., you may be eligible for an FHA loan in about 2 years--they do require a minimum credit score of 620 and 3.5% down--As far as buying in cash--was there a possible deficiency judgment filed--
0 votes Thank Flag Link Sun May 2, 2010
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