Newbie in need of house. Iam wanting to get a house for my self that We can afford. We have no money and bad credit and trying to avoid Bankruptcy. Should I go for no down and first time buyer programs or try to find a foreclosure. I checked some houses in my area that are Rent to own but can’t afford the payments of $1100 and up. Homes for sale are 180k and up. and we don’t want to move to far from the Schools. We can only afford about $700 per month. We live in Federal Heights, this is just north of Denver,Colorado. My big concern is if I try to Qualify for a house wont my Creditors come after me even more and If I learn REI and use hard money lenders to purchase homes wont this also be a problem. What would be the best way for me to start in REI in my current Position. ???
Buyitogo,
Here’s the deal, you need to find a place that you can get into without going through a bank, because anything through a bank or mortgage broker is going to require credit and if you did end up getting it financed through these sources, it would show up on your credit.
There are ALL kinds of ways to get into deals without using any of your own money OR very little of your own money AND without going through a traditional source of lending. The part the will require the most effort on your part will be finding a seller who is MOTIVATED to get rid of the property or who is open to creative ways to finance.
One way that I am very fond of is HML (hard money lending). If you can find a house that is valued at 65% of the after repaired value, you can qualify for hard money - which, by the way, has nothing to do with your credit, income, etc. It only has to do with the property itself, not the borrower. This is true in most cases. Some hard money lenders want credit scores, income statements, etc. but find the ones that don’t require all that stuff. HML is EVERYWHERE. You would have no trouble at all finding and HML lender in Denver.
Just dig deep! Don’t give up! Only go for deals that are profitable for you and don’t get suckered into a deal because you think you won’t be able to find anything else. Right now, there are thousands of deals out there for every set of circumstances no matter what, you just have to find them.
if you’re facing bankrupcy because of poor money management issues i would first attack that. even very smart people have gone broke because of poor risk or money managment [ read ‘when genius failed’].
if you don’t fix that you might make money in real estate but you’ll eventually be in the same position.
Yeah Bankrutpcy is definately a big thing, if you want a nice house under priced, just buy it sub 2 by taking over the financing.
Beaver124
mjs1982,
Who are the hardmoney lenders you use that don’t require any personal info up front?
Thanks.
ALL hard money lenders lend to a 65% LTV based on the properties crediblity, not the borrowers.
I agree with niravmd; need to take a hard land honest look at what has brought you to your current finanical situation. “bad luck” is not the right answer. No matter how you finance (conv. or Hard moeny lenders), if you miss payments or get into default, it will cost you more money and only make your situation worse.
Beside making the mortage payments remeber you will have addition cost in insurance and taxes; these will be about $200/mn. Thus for $700/mn you have about $500-550/mn to service a mortgage. With the exception of negative amortization loans (which are not appropriate in the situation, in my opinion), your budget only allows for about a $100k mortgage (at best).
;DBuyitogo- I have a friend whos a agent and investor, I also am in the same situation, look for preforeclosures and or a home owner whos flexible. Try to owner to carry a note on the home and {maybe offer to pay a little more than what their asking} make it look good to the owner offer them somthing in return, or thats what Ive been told… its a numbers game, you cant be in a hury, it MAY and I mean May take awhile…maybe not Good luck
Geez people, do some of you even read these posts?
niravmd seems to be the only one who got it, but I don’t think that the message came through.
So hear it is again:
Buyittogo, YOU DO NOT NEED TO LOOKING FOR A HOUSE. If you are facing bankruptcy, you need to be finding out how to solve your financial problems. Let me tell you, buying a house, ain’t gonna fix’em for you.
My big concern is if I try to Qualify for a house wont my Creditors come after me even more
Damn right they will! I know I would. If you can buy a home, you can pay what you owe me.
What would be the best way for me to start in REI in my current Position
By paying off your bills AND getting to a place where you CAN actually start considering REI.
Buyittogo, I’m sorry if this sounds harsh or rude or whatever, but you have to face the facts. If you can’t pay your bills now, adding one more (house payment) isn’t going to help.
Roger
Thanks guys, Your not being rude your being honest and I like that in people. The reason I stated $700 mo. is thats what I pay to rent an Apt, Regardless of my position I have to pay rent to somebody prefer it be Me. That is why I am looking into REI so that I can find a way to pay my debts and make more money. If I dont change things nothing changes. I have not looked into HMLs yet in CO. 
Thanks again
hi friend what kind of credit issues do you have?here at wilson credit service we can help improve your score please explain your situation???
unless you paying cash for a house, you’re paying RENT on the money you borrow to pay for the house. only its not called RENT, its called INTEREST. if you pay 700/mo interest thats still money down the drain. then you have insurance, repairs, and taxes.
if you have poor money management skills, buying a house will push you over the edge quicker and make some other investor richer. if i were you i’d look for people in your situation who made the mistake of buying a house and use them to make yourself richer. but thats just me. we can’t all be investors now can we?