home purchase

nashtracie · Joined: 19 Aug 2008 Posts: 2 1.91 Dollars($)

are there people who will purchase you a home for a fee and hold the mortgage until you can refinace after credit score has raised high enough. Live in Michigan?????

jameshogg

Hi nashtracie,

I don't know whether there are such companies but frankly speaking, such transactions are risky deals. I mean buying a home is a big deal, so even if there's any company who'll buy the home of you, they will charge you a lump sum amount. And I doubt whether any lender would like to invest for the home? Moreover, there's no guarantee when you credit score would increase. So, obviously such a deal is perhaps not worth considering.

Now, it seems as if you're trying to buy a home but can't because your credit isn't good enough. How bad is your credit? If it's well around 550-580, FHA loans could be an option for you. Let me know your situation in detail so that I can suggest something even better.

Thanks

kpatrick · Posted: Wed Aug 20, 2008 5:52 am Post subject:

Another option is to look into a lease purchase or owner financing. There are a lot of people out there desperate to sell, and it has created a market where the seller's are much more open to these options. Basically, anything to get them out from under their payment.

Like James said, I am sure that the type of company you are talking about is out there...but with the current economic situation, there are better ways.

And don't discount the FHA option. IT is very possible that you could qualify today. Ask for a referral from one of us, we can help you figure it out.

Either way you go, you will need to get pre-qualified, to make sure you are not lease purchasing a home that you will not be able to qualify for.

Guest

Companies like the one you are asking about have been in the news here in the past few years, as they have scammed people out of a lot of money and the borrowers end up without a home.

I would advise never to enter into a transaction based on the hope that your credit score will be increase high enough to refinance. That is what has happened to many people who got sub-prime mortgages two years ago with the hope to be able to refinance. Many times, borrowers have found it is going to take longer than 2 years to improve their score enough and also, the underwriting guidelines concerning who can refinance are constantly changing- you dont know if you would be eligible for a refinance even if you did get your score up. (Loan -to-value requirements have tightened up so much.)
I agree with the previous posters!

gmakerley · Posted: Fri Aug 22, 2008 9:15 am Post subject:

thank you bailey...i'm constantly amazed that people will fall for anything, believe any tripe that is thrown at them.

indeed...beware of this sort of scheme - it's undoubtedly a scam designed to deprive people instead of helping people. does anyone really think that there are companies set up to buy homes for others purely out of the goodness of their hearts?

the credit score issue is a whole 'nother thing. again, bailey, you hit that on the head with your response.

the bottom line for nashtracie and anyone else with the same question is BUYER BEWARE.

All times are GMT - 7 Hours

Page 1 of 1