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Help

8 Responses to “Help”

1. NJDebbie Says:
   September 30th, 2014 at 12:12 pm 1412079159
   1412079159
   I think you should consult a real estate attorney to weigh the pros and cons of what you are considering. Why can't the buyers get a mortgage on their own? If it's credit issues, I'd be cautious about going this route. It can take years to get these people out if they stop paying.

2. creditcardfree Says:
   September 30th, 2014 at 12:19 pm 1412079552
   1412079552
   I hope you find the information you need. Will this affect your ability to buy a home, without cash proceeds from the sale of this home?

3. ThriftoRama Says:
   September 30th, 2014 at 02:29 pm 1412087340
   1412087340
   I don't have any resources but let me say my in-laws tried this with a house they were selling and became landlords. It was terrible. But, they tried it with a second round of people by writing a rent to own contract. They moved in and paid rent, and had x amount of time to clean up their credit and qualify for a traditional bank mortgage. The second time worked.

4. Another Reader Says:
   October 1st, 2014 at 01:44 pm 1412171090
   1412171090
   You have a buyer that can't qualify for a mortgage and you want to lend him money at the going rate for a qualified buyer?? And you think this is a GUARANTEED investment??? This is a surefire way to get someone in the property who can't or won't pay the mortgage. There's a good chance that this "renter" will destroy all the improvements you have made and more. In addition, most seller financing now does not comply with recent mortgage regulations. In your shoes, I would not consider doing this for a second.
   
   In six months of MLS marketing, not one qualified buyer has stepped up. That means the property is significantly overpriced. Price fixes everything, including the lack of qualified buyers. The taxes, insurance, and utilities you pay every month are never going to be recovered by a higher price. The risk you are likely taking with a vacant property is unacceptable to me. Check your insurance, you probably aren't covered once the property is vacant for thirty days. Lower the price and be done with it.

5. LuckyRobin Says:
   October 1st, 2014 at 06:18 pm 1412187505
   1412187505
   AR, no it would not be at the going rate. It would be at 8% interest with a balloon payment after one year. I typed when I wrote 5%. I know exactly what their credit scores are and I know what is going on with why they can't get a loan. They followed some bad advice from a bank loan officer and paid off some very old debt that wasn't on their credit report anymore. She told them it would improve their scores, but by doing that it brought it back onto the report as current debt and tanked their scores instead. I saw the reports before and after.

6. creditcardfree Says:
   October 1st, 2014 at 07:21 pm 1412191314
   1412191314
   Wouldn't an underwriter see the same reports you have and be more likely to lend based on the knowledge you have? Don't let your desperation for a buyer or the price they are paying lead you to a bad deal.

7. Another Reader Says:
   October 1st, 2014 at 10:55 pm 1412204101
   1412204101
   Underwriters can't make allowances. The bank would sell the loan, most likely to Fannie Mae or Freddie Mac. If the credit score is not in the acceptable range for the loan to be sold, the bank is unable to make the loan.
   
   The story does not make sense. If the debt was not on their credit report, how did the bank even know about it?
   
   Dodd Frank created a lot of issues for seller financing. LR needs to look into this, as some of the rules apply to financing a single property. One early article on the subject is here: http://www.biggerpockets.com/renewsblog/2014/01/17/dodd-frank-law-changes-seller-financing-investors/

8. LuckyRobin Says:
   October 2nd, 2014 at 03:02 am 1412218928
   1412218928
   Well, it is moot now. The sale fell through.

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