Looking to buy a home in cent.Fl w/i 2 months. Money is tied up in my listed home (no mortg.) poor credit= no loan. Any advice? Lease/own options??

Asked by jjen2640, Aloma, FL Sat Dec 1, 2012

Home is valued by insurance adjusters between $875,000 - $1,200,000. I am "dumping" it around $500,000 for relocation. Any ideas how to pull out equity with bad credit? I do not want to rent and move again( when house sells) with a young son.

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David, , Ocoee, FL
Sat Dec 1, 2012
I wouldn't give up on buying quite yet. Even though you have poor credit, you have a substantial asset. As difficult as it is to get loans these days, lenders do give loans if they believe they are not going to lose their money. Talk to a mortgage broker about a loan that givies the lender a lien on your current property. If the fair market valuse is close to a million, then you may get a loan equal to your proposed sale price of $500k.

I am an attorney and realtor, and I worked with this identical situation recently. Many of my cloents have poor credit. If you have a good mortgage broker, call him. If not, let me know and I will hook you up with one that should be ablemto help.

David Dowell
Realtor and Attorney
1 vote
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Sat Dec 1, 2012
You need a Bridge loan and lender who will work with your credit.

I can help.

See programs at http://www.pro-option.com and call me asap 888 662 4404

0 votes
Don Shippey, Agent, Orlando, FL
Sat Dec 1, 2012
Hi Jen,
Question: You mention valued by insurance adjusters..... are you referring to insured value? This is usually the "replacement cost" to rebuild, and has little to do with market value. Do to the recession and market conditions, very few homes would sell for the repalcement cost to rebuild. Insurance companies force you to insure for this amount because if it were ever totally destroyed, that is the estimate to rebuild, (minus land value). But market value is usually far lower right now in many areas.
You may find a private lender or a portfolio lender to consider an equity loan. But it would likely be a much lower LTV than a traditional lender that loans 80-95%.
Another option is to sell your home with an agreement to lease it back for a while. This would give you the funds to shop for your new home, without having to move twice.
Let me know if I can help you in Central Fl /Orlando / Kissimmee and nearby areas.
Don Shippey
Broker / Associate
REMAX Properties SW
0 votes
Broker Dave, Agent, Orlando, FL
Sat Dec 1, 2012
Discuss this with a mortgage broker to see options available to you.

If you need a recommendation contact me either through my profile here on Trulia or at the email below.

Dave & Patty Lowe
0 votes
Julie Rosent…, Agent, Jupiter, FL
Sat Dec 1, 2012
Hi, I recommend you ask your tax accountant or attorney to help you decide your best plan. Please call your Florida "go-to" realtor Julie Rosenthal (561)827-6789. See all listings and get free valuable information at http://www.BUY-SELL-RENT-FLORIDA.com. Email julier6789@gmail.com Property Brokers International
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