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Buying or Selling a Home/Lease Purchase with defaulted student loan
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Question
I have a defaulted student loan that I am rehabilitating and should be out of default with it removed from credit in August 08. I would like to do a lease purchase option, which in GA, happens often in the real estate market. My question is do you think I would qualify for lease purchase option with a defaulted loan even though in 9 months I will be out of would most home owners run from me and not give me a chance because of it.
Thanks,
Smith
Smith--
In a "weak" Real Estate Market, where there's a larger inventory of Homes for sale than people buying Homes,Sellers are usually more open to "CREATIVE" Home purchasing & financing methods.
In those "BUYER'S MARKETS" as they're called, Sellers are often willing to "carry the paper"--that is take a Downpayment directly from the Buyer & have the Buyer make monthly payments directly to them--OR to sell a Home via a "Lease-with-Option-to-Buy!"
WHEN SELLERS ARE ANXIOUS TO SELL, THEY'LL USUALLY CONSIDER A-N-Y OFFERS THAT COME IN TO THEM!
I suggest that you make an appointment with a Loan Officer (LO) at your favorite bank or Mortgage Company
and discuss the possibility of your being approved for a Mortgage when your Defaulted Student loan has been rehabilitated & your Credit Report reflects it as "current." The LO should take your Loan Application, submit it for Review & be able to "Pre-Qualify" or "Pre-Approve" you for a loan "subject to" your clearing up your current credit issue. If the LO "Pre-Qualifies" or "Pre-Approves" you, get a Letter from the LO stating that your Loan will be available upon resolution of your Student Loam problem in August 2008.
WITH A LETTER FROM A LENDER INDICATING THAT FINANCING IS POSSIBLE IN FROM 9 MONTHS TO A YEAR,YOU CAN THEN MAKE LEASE-PURCHASE OR SELLER-FINANCED PURCHASE OFFERS THAT MAY WORK FOR YOU!
Find a Real Estate Agent who's good at negotiating with Sellers, who's more interested in helping you with your efforts to own a Home than his/her own interests, such as the Commission! FIND A BUYER"S AGENT!
Then you & your Realtor can look for a Home that meets your standards--and hopefully is owned by an "Anxious Seller!" Hopefully the Homeowner won't "run from" you, will give you "a chance!" If not, be patient, keep looking & trying!
GOOD LUCK, Smith! Hope things work out well for you!--Root
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| Comment | Thanks, this really helped me see things in a better perspective. | ||
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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