Buying or Selling a Home/mortgage loan

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Expert: John Hendricks - 7/20/2008


Question
I am trying to buy a home. I have a tax lien on my credit report, but have a lawyer handling it. we have an offer in compromise in effect. now My salary is 70,000 plus and my father is also going into home with me. can i still ask for a loan with the tax lien and my father as the cosigner? he has had employment for 32 years and fair credit or should i just not involve myself in the loan request

Answer
Dear Yvette;

Thank you for your question… Unfortunately, past experience with my clients in the same position leads me to believe that your tax lien/offer and compromise would be a problem in securing a decent loan even with a co-signer. Since you would be the primary borrower, mortgage investors will still look at your specific credit first even with a co-signer, since you will be the owner occupier of the home. The co-signer would be considered the secondary borrower in the transaction.

You may be in a better position by allowing your father to buy the property in his name without co-signing for you if he is in the position to do so. You will be making the payments, without the tax benefits such as property tax and interest deductions, but as your credit improves in the months ahead, you can purchase the home in your name with adequate rates. The appreciation in the property will still be to your favor 2 years after you take possession of the property in your name with your father’s cooperation.

I would highly recommend you get the best experienced Mortgage Broker to review your situation. If you are not in a position to purchase now with a co-signer under your circumstances, the mortgage broker should guide you through the process to get you ready at the earliest possible time to eventually purchase the home from your father. It will not be a waste of their time, since your father would be the immediate buyer and would obtain the loan through your mortgage broker. If your father is in a position to pay cash for the property, he would be your investor, hold the first deed of trust, and as you make the payments on time, your credit would be re-established within a shorter period of time. That would be your best option…

As I always say… I am a California Realtor. Since I am a Realtor and have had experience in these situations, it still is not my specialty. I would highly recommend you contact a mortgage broker to confirm what I have said, and obtain more information that will help you along the way to re-establishing your credit.

Hopefully you will be able to use the information provided to make some wise decisions in the future. Good luck with your pursuit of owning a home…

Warmest Regards;
John Hendricks  

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John Hendricks

Expertise

As a California Realtor for 23 years practicing in Marin and Sonoma Counties, it is now time to provide counsel through AllExperts.com to those who need advise in real estate. My knowledge and experience includes a wide range of resale residential real estate purchases, new home sales, income related investment properties involved in 1031 exchanges, and land. Let me help you in any of these areas...

Experience

John Hendricks has established himself as one of Marin & Sonoma Counties premier Realtors. A native Californian, John is a well-known and respected Realtor in both Marin & Sonoma Counties who has resided in the Northbay since 1976. John began his real estate career in 1986, and since then has distinguished himself as one or Northern California's top producing Realtors. Before joining Frank Howard Allen Realtors, John was an associate of the Prudential California Realty from 1990-1992 where his outstanding sales achievements earned him one of the company's highest honors, the prestigious "President's Circle Membership", presented to the top 2% of associates for sales and earning excellence. Since his association with the highly regarded Frank Howard Allen Realtors in 1992, John has once again established himself as one of his company's Top 10 Producing Realtors in Marin & Sonoma Counties for the years 1993 through 2007 and now in 2008. Five continuous years of outstanding performance has now allowed John to join 15 other Realtors in the prestigious "Lifetime Hall of Fame" for Frank Howard Allen Realtors. John established a group of professional individuals who specialize in a variety of areas in real estate called, 'Lundmark-Hendricks Fine Homes' This group of professionals are dedicated to the success of representing clients with the greatest amount of care and service when either buying or selling real estate.

Organizations
California Association of Realtors National Association of Realtors

Education/Credentials
Upon Request...

Awards and Honors
Frank Howard Allen Realtors "Hall of Fame Member" Chairman's Circle for 10 consecutive years

Past/Present Clients
Joe Louis & Sharon Sigurdson We want to thank you again for your excellent representation of interests during the recent purchase of our home in Petaluma as well as the sell of our home in Mill Valley. We had the unusual pleasure of working with you during the last year both as sellers and buyers. We felt that our interests were always paramount and that we received a very fair price for the sale of the Mill Valley house as well as our purchase of our new home. This speaks particularly well of you, because of the recent unstable and chaotic real estate market. Will Finke "Quite frankly, we came out of a very difficult situation, which time does not allow elaborating on. This was one of the greatest experiences of our lives as clients. John Hendricks is one of the top businessmen I have ever met." Bruce & Nancy Rosentreter "I chose John Hendricks to sell my house. I picked him because I thought he was professional, aggressive, and that he could get top dollar for my house. He fulfilled my expectations completely." Joy Schuelke "Since we were trying to sell a high end home in a very tough market, and in the middle of a very rainy winter, the prospects seemed quite bleak. I was convinced at the time, and am even more so now, that without John's tenure, patience, and tenacity, we would have not been able to move the property." Lynn McCarthy "I cannot stress strongly enough how impressed I was with the service provided to me by John and his group. Throughout the entire transaction, John was always available, always forthcoming with excellent advice based on his years of experience, and always willing to put in the extra effort to make this a positive experience for me. I feel lucky to have had the experience of working with him." Lea Lieurance-Turk "Thank you John for your outstanding real estate services for the past 5 years I have known you. You have made my dreams come true as far as selling and buying property."
http://www.LundmarkHendricksFineHomes.com

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