Just got scammed in our new rental and desperate to BUY a house. We are sick of renting! Please help!

Asked by TY, 92880 Thu Aug 21, 2008

The home we just moved into two weeks ago and had planned to rent for the year, has been foreclosed on and we need to vacate the property by the end of the month. We were scammed because the former owner of the home knew that his house was in foreclosure, but chose to rent it anyway. We had NO clue of this. We love the home and wanted to buy it in the future. Now it is owned by the bank and will be put up for sell in the coming months. My husband and I have poor credit (low 500s) and really want to buy a house as first-time home buyers. Would we ask an investor to buy the home we are renting now, when it goes up for sale and have that investor do a lease-to-own option for us? Where would we go about finding a legitimate investor that is willing to do that? Our parents don't want to take the "risk" of buying the house for us. I'm at the end of my rope and so tired of renting homes. We have enough income to pay a $400K mortage- bad credit is making it hard for us.

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Edward J Zorn, , Corona, CA
Thu Aug 21, 2008
You should look into getting a NACA loan. These programs are NOT credit score driven, but do require you to attend some workshops on homeownership. They have the best rates around. We are working with them to set up a local branch office, and they are scheduling some workshops for here in Ontario. You should work with a NACA approved Realtor to assist you through the approval process. If you have to rent for a short time, be sure to ask the Landlord for a copy of his mortgage statement, so you can see what he is paying, and if he is behind. If the rent payments are less than the mortgage, you should include terms in the lease that allow you to stay in the home rent free for a period of time. Working with an experienced Realtor in negotiating the lease is a must in this current environment. There are good inventors out there, but most banks are not willing to sell at a price that would make sense for an Investor to be involved.
Web Reference:  http://www.zecrealty.com
3 votes
Dwija, Home Buyer, Temecula, CA
Sat Aug 23, 2008
Ty- I think there should be a way for you guys to get a mortgage if the score is the only problem. There is a mortgage forum at http://www.fico.com where you can get advice and information on different loan options for different levels of credit. I'd hop over there and see what I could find out. More importantly, though- don't do a lease option in a declining market! A couple of months ago we looked into that, and it is really a bum deal for the buyer. They're only advantageous to the buyer if a) the person doing the option has your best interest at heart (ie. a family member) and you simply pay the mortgage amount as your rent and assume the loan balance at the end of your option. That's ideal. The only other way for it to benefit you is if the prices on homes are quickly appreciating and you can lock in a selling price on a home *now* that might increase dramatically over the next 2 or 3 years. Otherwise, you're going to be spending a whole lotta money on a very iffy deal. Really do your research on lease options before you jump into one of those!

Okay, hope that helps. Good luck!
2 votes
Diana Margala, Agent, Rancho Cucamonga, CA
Thu Aug 21, 2008

There is not enough information to know weather or not an investor would be willing to purchase the home, it is all about the numbers, the price of the home, the amount that the investor would have to be put down and the monthly payments. With that information there might be an investor who would be willing to work with you. Contact me and we can discuss it more. You can e-mail me or call.

But you do need to work on your credit. If there are collections contact the people and see if you can negotiate what is owed and pay them off. Pay your credit cards on time, always pay more than just the minimum even if it is only $1.00 and if possible make a second payment on each card each month, it will help to drive your credit up. One last item is to make sure you only use 1/3 of your credit limit on each card.

Good Luck
Diana 909-945-5763
1 vote
Dirtha Campb…, , Overland Park, KS
Tue Nov 25, 2008
There is the possiblity of getting approved with a 550 credit score. It depends if you have had previous rent and utilities paid with no 30 day deliquencies over the last 12 months and "no other" collections, delinquencies, or derogatory pay history on your credit with in the last 12 months.

If you were to close on the house before Jan 2009 you will need to have 3% of the sales price and 2 months payment reserves. If you or your husband have a 401k it can be liquidated with no penalty for your new home purchase to provide the 3% downpayment and the evidence of 2 months of the new mortgage payment as reserves. Also a gift can be provided from a family member.

Review my profile and if I can be of any assistance my email is there.
0 votes
Art, , Riverside, CA
Tue Nov 25, 2008
This is Arturo .. .and to answer this individuals concern . ..I have rented the property on Jackson streent ,.,.owned by my family..with absolutely no issues.. ...I rented the propety on Skyview...where the renter IS aware we are working out an arrangement on our current mortgage with GreenPoint ...that's the unfortunate thing with these positings,.I'm scamming people..yet on these 2 properties I rented out . . one the payemnts are up to date,,,the other a so called "modification" is in the process and the TENNNAT IS AWARE.

Just happend to check this out and figured I answer ...you can reach me on my cell for further questions.
0 votes
Lola, Home Buyer, Riverside, CA
Sun Sep 7, 2008
hi ,
I am so sorry about what you are goinf through. Well, My husband and I are going through the same thing right now! I wanted to ask, didnt you get a cash for keys deal and they said you will have to be out within a month? Have they gave you guys the notice to quit? The notice to quit gives you 60 days to move. We are looking for a home now( 8 0ffers later) we are still waiting to find a home. My husband doenst have such a great credit score and has had a foreclosure in his past history and we were approved with no problem. I would say thry lending tree, they are legite and I am sure u will be approved by a lender but will have to pay higher APR. Going through all this is sooooooooooo stressful, I think they should make a law that will fine the owners who scammed us out of our money! Well I wish you guys all the best of luck.

0 votes
Greg Valdez, , Riverside, CA
Mon Aug 25, 2008
yes this kind of problem with renting a house that went to foreclosure is real commond. Owners want to make a quick buck before loosing there property. I have seen IT ALL there is a way to get more time to move out. you can call me at (951)787-0006 greg valdez. whe are a paralegal office I can give you some advice on how to get more time to move out.
0 votes
NonRealtor, , 23456
Fri Aug 22, 2008
Rent for a few more years. Work on your credit rating and save for a downpayment. Prices are still declining, they are not going up anytime soon. It could be 5-10 years before prices increase in this area. You don't want to pay too much. Good luck.
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Aug 21, 2008
Investors usually go for the quick money than ttake chances in real estate. Although not impossible it is unlikely unless they are stealing at the house at a rock bottom price from the bank. Have you tried talking to the bank and asking them for a loan. There are two thoughts to this as some banks wont or cant loan money any longer. Other banks like Wells offer financning on their bank owned homes. Your best bet is to first try the bank, assett manager or preservation company that has been assigned to this house. NExt try some local brokers that specialize in investors. With any luck you may be able to find one. You should also begin looking for other homnes in case this does not work out. It saddens me to hear how you were treated, it is an epiedemic spreading the country that this is happening. If you could find another lease to own home, you may spare any more pains with the deal you are in. I wish you luck with your situation.
Web Reference:  http://www.ScottSellsNH.com
0 votes
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