I Want To Buy The House I Live In As Tenant
for 8 years i have been the property manager and property maint person on a 4 unit house, during those 8 years the house was sold to one of the tenants in 2007 for $215,000 and a mortgage payment of over $2000 a month. original owner whom i had a working relationship with bought the HUD home for $37,000.i did 80-90% of the rehabbing and restoration only to end up in supreme court with her over breaking our agreement we had. point is the house is in foreclosure and i want to buy it, it is appraised at 128,000 and that is what it is listed at, but it needs significant repairs, all that i can do myself. the owner and i semi share the top large flat, him in the front half, me in the back, i consider him a friend. there is 1800 a month in income not counting the apt i live in currently. my credit score is bad 580 but i know i can make it work. i want to live here the rest of my life. first franklin was the loan bank that is now out of business probably because of rotten deals like this one. the owner bought this house with money down from a third part broker friend of the seller, and the current owner only makes 300 a week. there is so much more to explain is there anyone interested in helping me. please help me with info to buy this house.
There are a couple options:
1) work w/ owner/land lord for a short sale
2) work confidentially thru a partner (in case they have an ax to grind)
3) buy the note from the lender.
Good luck.
Unless you have the cash to buy this property, the FIRST thing you need to do is find a source of funds.
Mortgage companies are not lending to a person with a 580 credit score.
[addsig]
"credit score is bad 580 but i know i can make it work"
appraised at $128,000...doesnt matter, you wouldnt get the loan if it were $28,000. thats the bad news.
the good news, maybe you got friends or family with good credit, A short sale at $128k could work for the bank. Looks like you can make the rental income work with your maintenance skills. You could also take over the $215k note (bond for deed), but that would be silly if your appraisal is correct.
good luck
thanks rglover for responding, im not sure what a bond note is, the owner has 2 mortgages one for 171000 and a smaller one 45,000, a 1600 and 350 monthly payment that he could make work but chooses instead to spend the rental income on beer and music equipment etc, he hasnt made a payment in a year and a half. i love this house and have put in thousands of hours of my labor into it. and i want to continue. hopefully someone knows and can help me get this house.
In a bond for deed, you basically offer him $2500 cash and promise to pay off the mortgage for the deed. However, your payments go through a title company to ensure the mortgage is being paid. However, since hes so much in default, that options pretty much out the window.
Sorry, im out of options here, I just cant see the mortgage company dealing w you (580) after dealing with HIM the last year. Check the local paper for the auction, maybe youll get lucky.
Does your purchase and sale contract written so that it say the buyer is "your old llc or assignees"? If so then at closing you can assign to your new llc.
If it does not then I would immediately contact the bank and let them know that you are changing the llc comnpany. This might start the short sale process all over again.
Two things:
1. MOST banks will make you start over if you change buyers (LLC or not). SUCKS!
2. MOST banks clearly state within their approval letters that you cant assign it.