Howdy from southeast Michigan!
I’m currently trying to help my father, 49, get a great property (for habitation, not investment). I’m a total newbie to the process so forgive me if I’m short on details.
The property, a condo, is currently owned by a family member. This property has been appraised for $135,000 and similar models have sold for $150,000. However, because of the relation (my mother, fathers ex), she’s willing to sell it to us for what she currently owes ($119,000). The property is in good condition aside from a few needed touch ups (such as new carpet and a good paint job). The area is also a hotbed of activity. There’s a new hospital opening in early 2006 and a new downtown area that will begin construction this fall. Time is a major factor in this as the 2nd mortgage is in default.
My father, a Vietnam-era vet, has been employed with a major, national “big-box” electronics store for 9 years and has a gross income of $55,000 a year. His credit falls into the “poor” rage with scores of 564, 576 and 629. Aside from his $600 a month apartment, he has only one open line of credit in the last 5 years (a paid off car loan in good standing for around $6,000). However, total debt adds up out to around $1,500 (a few utility accounts that were my fault). As far as a down payment goes, he has $5,000 in cash and a money market account worth a little over $8,000.
I’ve been talking to several local lenders who advertise they deal with “bad credit” and I get the feeling I’m the butt end of a snow job. Not that I have any experience with the industry, but I just don’t feel like I’m being told the whole truth.
Anyhow, could someone let me know if what I described above would be doable from a traditional lender or would I need to find myself an investor? If an investor is required, how would I go about finding one? Any tips, advice, pointers would be a fantastic help.
(I’m doing as much leg work as I can as he’s training a new district manager and his time is very limited at the moment.)