Another “Home buying with bad credit” question
Question: What about finding a house that’s about to go into foreclosure, and paying the present owner for his position in the house?
I know someone who did that for investment purposes, but as far as I know, he had good credit.
Can you do such a thing with bad credit (obviously assuming you have the cash to bring the loan current)? In such a desperate situation, would the lender rather take money to continue the loan from an unknown party than continue through a sure foreclosure?
If this works, is this one of the reasons foreclosure investing is popular?
How much money would you need, assuming you had a property with a circa $ 1k/month mortgage?
I understand some of the pitfalls of this arrangement: The owner might refuse to vacate; the property might be in wretched shape due to deferred maintenance; the bank might not like seeing someone with poor credit taking over the loan.
Are there any others? Anyone got some interesting stories to tell?
Answer: Most banks insist on refinancing but if they don’t want to be bothered with the foreclosure they might work with you on it.
Related Posts
Filed under: Bad Credit Loan
Leave a Comment
XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
TrackBack URL | RSS feed for comments on this post.