Hi, I am a single mother of two boys and I am looking to buy my grandmothers house in new jersey.My credit is

Asked by Sam, New Jersey Tue Jul 1, 2008

not good from old debts unattended to.I have a job working for the state for eleven years? Is there any help for me?

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Cameron Piper, Agent, Forest Lake, MN
Tue Jul 1, 2008

Why doesn't your grandmother sell the house to you on a contract for deed. After a few years of credit repair you will be able to buy the house with a mortgage. Just a thought. Post back if you would like more information.

Cameron Piper
Web Reference:  http://www.campiper.com
1 vote
, ,
Mon May 13, 2013
Good afternoon Sam,

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Joanna Lane, Agent, Cutchogue, NY
Wed Jul 2, 2008
A “contract for deed” or an “installment sale agreement”, is a contract between the owner of a property and a person who wants to buy the property for an agreed-upon purchase price, whereby the seller retains the legal title to the property, while permitting the buyer to take possession of it for most purposes other than legal ownership. The sale price is typically paid in periodic installments, many times with a balloon payment to make the length of payments shorter than a fully amortized loan. When the full purchase price has been paid, the seller is obligated to deliver legal title to the property to the buyer. The legal status of land contracts varies from region to region.

It is common for the installment payments of the purchase price to be similar to mortgage payments in amount and effect. The amount is often determined according to a mortgage amortization schedule. In effect, each installment payment is partially payment of the purchase price and partially payment of interest on the unpaid purchase price. This is similar to mortgage payments which are part repayment of the principal amount of the mortgage loan and part interest. However, since land contracts can easily be written or modified by any seller or buyer; one may come across any variety of repayment plans. Interest only, negative amortizations, short balloons, extremely long amortizations just to name a few. Typical land contracts are easy to understand and usually only make up 3-5 pages. It is not uncommon for land contracts to go unrecorded. For several reasons the buyer or seller may decide that the contract is not to be recorded in the register of deeds. This does not make the contract invalid, but it does increase exposure to undesirable side effects.

Although land contracts can be used for a variety of reasons, their most common use is as a form of short-term seller financing. Usually, but not always, the date on which the full amount of the purchase price is due will be years sooner than when the purchase price would be paid in full according to the amortization schedule. This results in the final payment being a large balloon payment. Since the amount of the final payment is so large, the buyer may obtain a conventional mortgage loan from a bank to make the final payment. Land contracts are sometimes used by buyers who do not qualify for conventional mortgage loans offered by traditional lending institutional, for reasons of poor credit or an insufficient down payment.[citation needed] Land contracts are also used when the seller is anxious to sell and the buyer is not given enough time to arrange for conventional financing.

For further information, see the link in this post.
0 votes
Gail Gladsto…, Agent, 11743, NY
Tue Jul 1, 2008
I recommend you have conversation with a mortgage broker and a real estate attorney before going any further. If you would like any recommendations, contact me off line at Gail@GailGladstone.com
Web Reference:  http://GailGladstone.com
0 votes
Don Tepper, Agent, Burke, VA
Tue Jul 1, 2008
I second Cameron's suggestion. A contract for deed would be a very good solution.
0 votes
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