Bad Credit: Rent to own?

Asked by Mchrist14, 20186 Tue Apr 10, 2012

My husband & I have poor credit, & are in the process of paying off approx. $10,000 in debt (most of which is in collections).
Within the next few weeks, we will be coming into quite a bit of money through inheritance (approx. $100,000) & would love to use to the money to pay off our debt & buy a house. Does this sound like something we can do? Would a rent to own option be best?

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3
Chris Whitwo…, Both Buyer And Seller, Richmond, VA
Tue Apr 17, 2012
If it were me I would buy with owner financing like Grassy suggested. Offer a good chunk of money for a down payment and give the seller a payment. That said as an investor I would let you lease option a house as long as you can cover the payment. You should be able to get financed in 2 years if you wanted to cash out the seller. Get with Elliott below to work on it plus he knows USDA. Warrenton is eligible isn't it Elliott?
0 votes
Grassycreek7…, Home Buyer, Cana, VA
Tue Apr 10, 2012
YOU CAN ALWAYS FIND OWNER FINANCING UNTIL YOU RECEIVE YOUR SETTLEMENT..I FOR ONE KNOW!! AND SOMETIMES ITS THE BEST WAY TO GO!
0 votes
Elliott R. O…, Agent, McLean, VA
Tue Apr 10, 2012
I would hold off on just paying off old collections. Sometimes that can actually hurt your scores if they are over 12-24 months old. If you have any credit card debt then that usually what we recommend you pay down to help improve your credit scores.

If you have any collections or charge-offs filed within the last 12 months then you would want to take care of those as well.

Take a minute to read these 2 articles: http://www.trulia.com/blog/elliott_r_oliva/2011/07/credit_10…

http://www.trulia.com/blog/elliott_r_oliva/2011/12/pre-apppr…
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