Home Buying in Los Angeles>Question Details

R, Home Buyer in Los Angeles, CA

Hello... I want to buy a repossesed house (3, or 4 bedroom) but I have very bad credit for my 2 divorces

Asked by R, Los Angeles, CA Fri Aug 24, 2012

but I want to pay half of the debts in order to clear my credit and start from scratch. Someone told me that I can´t bu anything due to I am presently in Mexico City and I must be there for 2 years, so..if that is the case I think that maybe I can rent a house for lease, (with option tu buy it). Could you help me? Thank You Very Much.In a good area, please, but not very expensive. I´m worried for the neighborhood and crime.

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Good afternoon rociogrobledo,

I hear ya about how a Divorce can wreck your credit. But I'd recommend based on my 23 years as a Mortgage Banker that you put your financial "house in order" before you undertake the responsibility of buying a home.

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
1 vote Thank Flag Link Sat Aug 25, 2012
Wow..Thank You, Very Much. I know that it is impossible to buy something in my situation. I would love to know if it´s possible to pay half of the debts, due to they are not mine..I only returned a van because I flied to Mexico City years ago and that´s it. Regarding a sufficient income, I just graduated and plan to open an alternative clinic of family constellations and I already have consultants, waiting for me to be in Los Angles, thanks God...but I am still here. I will definitely follow your advice..If you have someone to recommend me to call, please do so. Thanks Again and have a Great Day.
P.S. What about to rent a house for a year with option to buy it? Is that possible?
Flag Sat Aug 25, 2012
Sounds like you have a couple different things going on here! First, yes - you should do everything you can to fix your credit. I do know of someone who may be able to help you with that if you would like. 2nd - "CP", the previous commentor, is correct, you definately need to find out from a bank what they are willing to loan you and get a pre-approval letter. If you have cash in the bank - that's great! Then yes - you can pay cash, or perhaps a larger down payment so that your loan amount is less. As for you being in Mexico City..your there as a citizen of Mexico or the U.S.? Finally, as renting to own - that option is not often available and it incurs a large risk. You generally have to put a large amount down to the landlord and if you change your mind regarding buying the house - you will lose that money. I would take all of this one step at a time.
0 votes Thank Flag Link Sat Aug 25, 2012
Thank You too!!! Yes I have money because my Father just died and he left me in a good position. I am American Citizen. Regarding to change my mind, never because I want to open my clinic inside the house..with one consultant at a time, every hour. I would need to settle this as fast as I can because I plan to move to LA with my Mother and daughter by December 26th but to our house. If you can help me, please do it. Thank You, again and have a Great Day*
OH...and I plan to move to Sherman Oaks if possible.
Flag Sat Aug 25, 2012
You first need to talk to a bank of financial institution to see how much if any money they are willing to lend you based on your credit, down payment and resident information. Once you have determined this with the Bank, they will give you a pre-approval letter. With that you will know what you can and cannot do. If you cannot borrow, then your only option to buy would be all cash.
Once you have pre-approval letter, Shannon Chang 626-358-2360, she is a great agent and she can help you find a home. If you need help or a contact at a financial institution, contact me and I will connect you with some one.
0 votes Thank Flag Link Sat Aug 25, 2012
Thank You, Very Much..I will contact Shannon as soon as I have the letter.
Flag Sat Aug 25, 2012
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