Expert: Dick Dennis - 7/9/2006

Question
WE ARE SEMI-RETIRING IN JAN.07..LOOKING FOR SMALL ACREAGE IN NORTHERN ARKANSAS TO PURCHASE NOW, AND PAY OFF WITH PARTIAL LUMP SUM FROM RETIREMENT PENSION IN FEB.07..PLACING NEW DOUBLEWIDE ON LAND IN SPRING 07 AFTER SALE OF OUR HOME HERE IN TEXAS..PROBLEM IS FINDING FINACING FOR LAND (REALTORS IN THAT AREA SAY MOST BANKS DON'T LIKE TO FINANCE SMALL ACREAGE.)WE HAD A BANKRUPTCY DISCHARGED 2 YEARS AGO..WE HAVE 20% DOWNPAYMENT OF LAND PURCHASE PRICE.(LOOKING FOR 25 K RANGE)  WHAT IS OUR BEST OPTION TO FIND LOW NOTES UNTIL FEB. 07?  LAND IN THAT AREA IS GETTING MORE EXPENSIVE BY THE DAY!  OR WOULD WE HAVE MORE BARGAINING POWER JUST TO WAIT UNTIL WE HAVE THE CASH ASSETS TO PURCHASE IN THE MIDDLE OF WINTER?  CAN YOU GET A BETTER DEAL WITH CASH PRCHASE?   THANKS!   KATHLEEN KEITH

Answer
Quite frankly, Kathleen, you have two strikes against you in your goal for January: Your recent bankruptcy and "only" 20% down on land. You would have a better shot at it if you at least could put 50% down.

Otherwise, wait until you can plunk down all cash. You're in a much better bargaining position at that point anyway. Banks would look more favorably on lending you the money if you would be BUILDING on that land rather than parking a mobile home on it. It just paints too much of a negative picture.

I do wish you well.

Dick Dennis             dixiedee13@aol.com

www.OldProblemSolver.com