Home Buying in 11783>Question Details

Yocahama, Home Buyer in 11783

Found a foreclosure we can afford, but cant qualify for right now. Looking for someone to purchase home so we can lease back & buy in 2-3 yrs-

Asked by Yocahama, 11783 Fri Oct 15, 2010

ideas?

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7
Why would you want to do that? What is the benefit to the purchaser? How much will that houses be worth in 2-3 years? What will your credit look like then? Where will life take youo in 2-3 years? Who told you that you can not qualify now? What do your qualifications really look like? Etc...???

Lots of questions! Talk to a professional realtor & mortgage broker for answers!
1 vote Thank Flag Link Fri Oct 15, 2010
Here is a blog about home ownership. I might be helpful to you.

http://2000shortsales.blogspot.com/2011/01/buying-house-cost…
0 votes Thank Flag Link Fri Feb 4, 2011
Suggest you talk to a lender about a "hard money" loan for a few years until you can get your credit improved. Your other option is to see if you can work out a deal with relatives to help you. But if they buy as a rental they will have to put down 20% and have higher interest than an owner-occupied, and they will certainly expect to make a profit if they sell it to you in a few years because they will owe taxes and expenses to maintain it. Talk to some lenders for a long range credit repair plan, a few years is not a long time to put your ducks in order. Best, Terry Bell, Realtor, Santa Rosa, CA
0 votes Thank Flag Link Sat Oct 16, 2010
What kind of guarantees could you give to an investor that you would buy the house back? Or that you would finish the work? The idea seems a little far fetched to me but I've been wrong before. Why not look for a situation where you could rent to own or rent with an option to buy or even a house where the owner is willing to hold the mortgage? All these scenarios seem more likely to occur than what you're considering. Good luck!

Ralph Windschuh
Associate Broker
Certified Buyer Representative (CBR)
Senior Real Estate Specialist (SRES)
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties
Top 2% of Century 21 Agents Nationwide
0 votes Thank Flag Link Sat Oct 16, 2010
Not sure how to respond so I am doing it through an answer. I am aware of the risks. I strategically short sold my home and have a good opportunity to buy a new home (same size and location - but new) for less than half the price of my old home. My wife can purchase in her name, but we must show that she no longer lives in the house we are short selling first. Therefore if we can move into this home and rent for 1 to 2 years she (and possibly I) can qualify for this home. This will allow us to move once, and will allow an investor to make a year or three of rental income... with the security of a down payment. Because the home is new we would "finish" the home and landscaping making it an even more secure investment for the investor. An investor stands to make 40K+ year (even after allowing a portion of the rent to apply to the purchase). On an 800K investment the investor stands to make a 10% gain after two years....thats better than most stocks. If anyone has any interest let me know- it would be a win win.
0 votes Thank Flag Link Fri Oct 15, 2010
Keep in mind that it's in your best interest to improve whatever is preventing you from qualifying for a mortgage in the first place--have you visited with any qualified loan officer(s), any local banks, credit unions to see if you qualify--if so, were suggestions given as to how to quickly improve your situation, etc.; not sure anyone would be willing to fund such a scenario--again improve what needs to be improved first.
0 votes Thank Flag Link Fri Oct 15, 2010
That's a really dangerous situation to put yourself in. I would prefer to see you working with someone to improve your credit standing and ability to qualify.

If you would like such a referral to a non-profit government subsidized agency, contact me at Gail@GailGladstone.com ...I don't believe they charge anything.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Fri Oct 15, 2010
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