Home Buying in 02330>Question Details

Chris21, Home Buyer in 02330

Is there a mechanism such as an LLC or trust that I can use to assist in my efforts to obtain a primary residence after a foreclosure?

Asked by Chris21, 02330 Sun Mar 25, 2012

Its been two years I have obtained a car loan and am improving my credit. Ihave steady income but small savings. I have been paying enough for an average morgage in rent for the two years. Thanks Chris

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You don’t need to work around the system, the guidelines actually protect you more than they do the lender. FHA will allow a mortgage to be approved two years after a BK as long as credit has been re-established. In my shop you would need at least one open account paid as agreed for the last 12 months, no late payments or derog credit for 12 months.

Have your Realtor introduce you to the loan officer they trust the most. Gather all of the support documents that will be needed to apply for a loan and meet with the LO face-to-face, have them walk you through the process and options available, good luck, home this helps,
0 votes Thank Flag Link Sun Mar 25, 2012
Louis is correct. Regardless of the legal structure in which you attempt to purchase, the lender's going to look at you personally, and most likely require a guarantee from you personally. Further, particularly with a trust (though very often with an LLC), the property is moved into that entity after its purchase. So Joe Blow buys a house, then transfers it into the Joe Blow LLC or Joe Blow Trust.

Work on improving your credit--as you have been. Work with a good loan officer or mortgage broker to monitor your credit and to address weak points.

One alternative is to look for owner financing. And that's fine, but your choices will be far more limited. It's probably better in your case to be patient and to work on your credit scores.

Hope that helps.
0 votes Thank Flag Link Sun Mar 25, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
Thank you Louis, I appretiate your response.
0 votes Thank Flag Link Sun Mar 25, 2012

It not the vehicle that you own the property in, its the ability to obtain a mortgage. Also you would need enough of a down payment to meet the banks requirements.

You would run into the same issues in obtaining a mortgage whether it be an llc, trust or mortgage given directly to you, unless on the llc or trust, the mortgage and the obligations are in someone else's name with you as the beneficiary. But I would ask an attorney, your accountant and a mortgage specialist what are the options, ramifications and benefits, if any to you.
0 votes Thank Flag Link Sun Mar 25, 2012
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