Home Buying in Grand Rapids>Question Details

Mrs. Goree, Home Buyer in Grand Rapids, MI

My question is this..I am going to file bankruptcy in January and I want to purchase my own home. what steps should I take or lease with option?

Asked by Mrs. Goree, Grand Rapids, MI Sat Nov 26, 2011

Help the community by answering this question:

Answers

4
You probably can’t buy a home using a traditional lender if you are on the verge of bankruptcy.
As for rent to own, research the subject in depth before jumping in. It is probably not what you expect. In this type of transaction the underlying assumption is the seller will be able to perform in addition to the tenant/buyer. That is a very big what if, sellers are not subject to the same federal regulation as banks, do you really know the seller well enough to give them your hard earned money? I have discussed this in the blog entry linked below. Other entries in my blog will also shed some light on the subject. Most of the sellers interested in entertaining one of these transactions will already owe money against the property so they will not (should not) want to record any contact that might trigger the due-on-sale clause in their mortgage. Unrecorded contracts are difficult to protect should something happen to the seller, divorce, illness, death just to mention a few.

Finally, the reason most people seek this type of transaction is because they are not eligible from a mortgage from a traditional lender. Any work around to side step the mortgage underwriting guidelines shifts the risk from the lender to your side of the ledger, greatly increasing the odds of disaster. The guidelines are actually fairly liberal despite what most people believe. I have linked below some info on rent to own, but there are several other topics on my blog that may protect you. I hope my observations keep you away from harm, good luck.
0 votes Thank Flag Link Tue Nov 29, 2011
Bankruptcy law is complicated. You should pose this questions to you bankruptcy attorney. I doubt if any Realtor is capable of giving a good answer. I know none should attempt to unless also a BK attorney.
0 votes Thank Flag Link Tue Nov 29, 2011
If you want to purchase a home does that mean you have money? I would suggest that you consult a bankruptcy lawyer about filing for BK7. If you have money in the bank, you usually are not allowed to go BK7 but BK13.
0 votes Thank Flag Link Sun Nov 27, 2011
Hi Mrs Goree- If I were you I would search for a lease with option to buy, or a two year land contract. Before you do anything, consult your bankruptcy attorney though. I have a few land contracts/lease to owns available. Contact me and I can get you pointed in the right direction.
0 votes Thank Flag Link Sun Nov 27, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer