Prior Foreclosure And New Home
This is a long story - so I'm sorry. But I hope someone can offer advice! Here's the situation: In August 2002 my home was foreclosed. I'd gone broke - everything was in collections, etc. My credit is a complete disaster. I did manage to get one gas card and am paying it off every month. I've had a good job for the past 2 years that has plenty of future. In 2003 my son was born. My husband earned less at the time so we decided he should stay home for the first year or so. Now he is going back to work. A friend of ours has offered us her house for $350/month until January 2005. This is a HUGE savings. However, at the end of the year, she wants to sell it and offered to sell it to us for the balance of the mortgage. About $85,000. With my husband now only having worked for 7 months and me having the foreclosure....Would we ever qualify? I want to move into the house and continue to live on one check and save whichever is lesser so that at the end we could have about $10,000 to put into a deal. The house would be a steal for $85,000; great, established neighborhood, 3/2 , yard for the kids, etc. I'm just not sure what steps to take in the coming months to help qualify us. Should I pay the charge offs, collections, etc.? Would it help at all? Any advice is welcome!!! Thank you!!
Hello.
You have a lot of options available to you and I would suggest that you take a look at www.Creditboards.com for solutions on how to deal with the credit issues.
You could quite possibly resolve the bad credit issues by Jan 2005 so that you can qualify for a mortgage.
Many people qualify for loans with bad credit, however, the rates are not the best in the world. Its good that you are starting now, so that you can learn what you need to know for the future.
Good Luck to you.
Thanks for the advice and the link. I appreciate your help!