Tuesday, July 13, 2010

So at this moment my credit sucks and i found a house im in love with but its bank own so.....?

Is there any way I can do a land contract with 10-20% down for about 6 mths to a year and then by the home??The home has been forclosed on so its now bank owned. Do you think i have a chance to get it is a land contract ?? I really need help. Thanks mwah

No, lenders are not in the business of offering land contracts, they don't want to be "landlords" - they want to liquidate the assets. I have never, ever heard of a lender entering a land contract.

Improve your credit, then fall in love with a house.

ok what u can do is..............u can ask the bank for a lown and then buy ur house and then pay the bank once u get a pay check and there u go! u have ur house

You twice mention a "land contract", as I have never heard of that, I guess you are not in the US. With 20 percent down you can get just about any home loan here no mater how bad your credit is. Most banks are eager to work with people and can come up with ways to purchase a home!

If your credit sucks try to fix that first. Getting more loans will not help. Eventually you will lose the house you love and your credit may get even worse. You will always find other houses that you'll like.

Hi Hotsuz21,

No, you can not buy a house on land contract from a bank. The reason is simple, it has to do with "equitable title". If the bank were to give yo a l/c you would have equitable title, which means if you were to stop paying they would have to foreclose on you - much the same way as a mortgage.

However, I have heard of some banks renting out the houses they own just to keep them from sitting vacant. This may be a much better option for you. If you can get the bank to do a lease/option for up to a year, that would give you time to see if you really want that house and give you time to fix your credit. This will depend on your market and if the bank can just sell the house. Remember, humans work at banks, some are nice.....

Good luck

Here's the problem with foreclosures and buyers with poor credit (or low down payments):

The banks want to get whatever they can for the property as soon as possible. So, they want very quick escrows. If a buyer with poor credit or with a high loan-to-value financing situation puts an offer on the property, the bank may reject the offer - even if it's at the listing price - because of the higher probability of being tied up in escrow while the buyer actually tries to secure the financing. Or, it may fall out of escrow completely. In the mean time, the bank still isn't getting paid for the property.

I've been researching foreclosures for a few months now and have made offers on a few properties (with 25% cash down and preapproval for a 75% non-owner occupied loan). I've even offered about 7% over the listing price. And, I have gotten aced out by someone who comes in with a lower offer. But, it's a 100% cash offer. And, since there's no risk and a guaranteed quick escrow, the bank takes the lower cash offer.

My credit is A+ (I already own a couple of properties and am just looking for another investment property). But, the banks realize how tough the lenders are these days. So, they would rather not take the chance on someone who is coming in with an offer that is contingent on securing financing with a low down payment.

Honey while I understand you want to own your own home. But you have to realize first things first. You need to work on repairing your credit first. Why set yourself up for disappointment by being rejected time and again or paying exorbitant fee's because your credit is bad. It will only take a year or two and you could be in a much better position to ask for more. But maybe not now. You could certainly give it a try on this house, but I have no doubt you would be denied.

Remember: Owning a home is a privilege not a right.

F-R-E-E that spells free credit report dot com baby

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