Buying or Selling a Home/Buying A short Sale

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Expert: - 9/24/2008


Question
I make about 130,000 a year but I do have a NY state tax lien.  My credit is not good but the income is stable (and is from 2 jobs).   I do have a sister in law that make about $50,000 a year and her credit is about 600 points.  My landlord is about to loose the house and give it in a short sale.  What are my chances of getting the house?  They are going to sell the house for less than 200,000 (original value about $400,000) and I have $10,000.  Should I try to buy using my sister in law?  Should I try to buy using my own credit?  Could we combine?  I do not know who to trust.   How could I get a very good realtor that can guide me during this process?

Thank you

Answer
Hey, Hector.

Since you apparently are in New York, you really need to consult with a good Realtor or a good real estate attorney. I can answer your questions on a very general basis, but that generality might not be good for New York.

Generally you'll have to pay off the state tax lien before anyone will grant you credit on real estate.

I'm kind of curious why you haven't paid it off if you're making $130,000 annually.

With the financial mess the way it is, a credit score of 600 probably won't be good enough.

You could try to buy in any of the scenarios—just you, just your sister-in-law, or the two of you.

Call the owner/broker of the realty agencies in your area and ask them to recommend their best short sale Realtor. Don't be afraid to explain to him what you would like to do so that s/he'll know who to refer you to.

Good luck. I think it's a great market to be buying in.

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Russel Ray

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Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

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Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

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National Association of Certified Home Inspector, Better Business Bureau of San Diego

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Graduate of Texas A&M University; College Station, Texas

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