Is there such thing anymore as a mortgage investor in which you pay a higher interest rate to for a short period until you establish credit necessary?

Asked by, Tucson Green Valley, Sahuarita, AZ Tue Aug 10, 2010

I was forced to file a Bankruptcy due to a loss of an excellent paying job. My spouse is in a open Chapter 13 from a previous marriage however all payments have been made current. We have very good jobs and income is not a problem with a mortage. We cannot get get qualified for a mortgage due to his open 13, my discharged chapter 7. Any suggestions for short term loans?

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Bob McClure, Other Pro, Walled Lake, MI
Thu Aug 12, 2010
hi....matt is can always fine the money...however...the bankruptcys will show on the title commitment, and have to be acknowledged...your would need the bk court to issue an approval to close, and since private deals need so much down...i am sure the court will require you to source the funds, as well as the of luck to you both.
bob mcclure
mortgage one
brighton, michigan
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Hannah Flieg…, Agent, Larkspur, CA
Thu Aug 12, 2010
Hi Scooter,

Before you rush out and try to purchase a home you might want to get back to the basics of budgeting. I know many people think that Budget is a the dirty B word. I personally think the dirty B work is Broke. Finances are such a sensitive wedge between married couples and the fact that both of you have bankruptcies proves that you have some room for improvement with regard to your finances.

First, you might want to consider rebuilding a new trade line for yourself, since your bk was discharged. If you do not have new credit lines established yet this would be a good step. Second, you might consider credit repair in order to see if your credit profile can be cleaned up through the credit repair process.

Should you need assistance with improving your credit profile, I will be happy to assist you with this. As far as getting into home ownership here are some ideas.

1. Seller Financing (where the seller is willing to carry financing for you)
2. Rent to own
3. Lease-Option
4. Private Mortgage. Where you have a friend with money in a CD earning 1% and you go to them and offer to pay them more like 5% to give you a first mortgage on a home.

I certainly hope this answers your question and provides some value to you. Of course you can get through life with a poor credit rating, it just makes life harder. Good luck!

Hannah Fliegel, FICO Pro
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Jay Quiros, Agent, Tucson, AZ
Wed Aug 11, 2010
I think Matt pretty much hit the nail on the head. Another option is to find a seller that will "carry" you. In other words, there are sellers out there that are looking for income not necessarily a quick payoff. An agent should be able to set up a search for you to look at such properties. I suspect you will not find a large inventory of homes, but they are out there.
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Matt Heisler, Agent, Westborough, MA
Tue Aug 10, 2010
You can always find the money, but it may not make financial sense. Renting could make a lot more sense if the terms are not to your liking. The better mortgage brokers will have access to private capital.
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Tom Heath, Mortgage Broker Or Lender, Tucson, AZ
Tue Aug 10, 2010
I do work with Private Investors that offer short term loans. The rates are substantial and they expect a significant down payment (35%-40%). I use them mostly for short term commercial transactions, but they can do residential. However, without knowing your full situation, I tend to agree with Lynn below. Renting for a while may be less expensive in the short and long term.

If you want to discuss a private money transaction, let me know and I will seek an investor for you.
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Corey Grushin, Agent, East Brunswick, NJ
Tue Aug 10, 2010
Scootertime the market place is very timid and shy to risk. Depending on your asset base you may be able to find a local (smaller) bank that would be willing to work with you, National lenders most likely won't be able to help you.
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George Szkup, , Tucson, AZ
Tue Aug 10, 2010
It is not likely that you would get a mortgage loan - you may check with one or two lender.
The only way to "get in the house' would be through Lease-to-purchase or rent-to-purchase arrange nets - and this is, probably, doable.
George in Tucson
Homes for sale – many!
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Dallas Texas, Agent, Dallas, TN
Tue Aug 10, 2010
With all this stated lenders probably won't allow a mortgage till all is behind you for 2 years.

So why pay higher interest rates to a company OR person(s) lease an apartment, save money, wait out the time till you can qualify for a mortgage.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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