Where can I get a mortgage?

[ForumReader]

I just really don't like trusting people after what I have seen. . . . I seen people kicked out by the land lord because they needed the house for what ever. They give the tenant 500 Bucks and tell them to bounce. . . . . Not cool.

And the landlord not giving the tenant their security deposit but rather just 500 dollars? Yes, I agree, not cool. I am watching like a hawk how my landlord behaves. He knows I pay on time and take very good care of his property. I don't know what I would do if I receive an eviction notice saying I need to move out if he forecloses on the property without letting me know ahead of time.

Anyway, like DMC mentioned, hope you can find something feasible for the short term and eventually buy a property to your liking.

[samson420]

Well, crap. . . . I don't really see myself as having a choice in financing.

These private ass wipes are just snakes. The only thing they care about is getting your money as fast as possible and not even on a high interest loan.


I still have no notice to GTFO. . . . So I will save as long as possible. If I have enough, I will buy a house out right for cash. If not I will rent. . . . . . . I already have enough to buy a total POS house here in AZ, but I really would like something half decent.

[DeadManCrawling]

Yes, that is unfortunate, and applies to all of humanity. There are bad people out there, no doubt.

I hope you find what you need in the short term, and get back to ownership as quickly as you can. I agree, I have never like the thought of being at another's whim.

[samson420]

I just really don't like trusting people after what I have seen. . . . I seen people kicked out by the land lord because they needed the house for what ever. They give the tenant 500 Bucks and tell them to bounce. . . . . Not cool.

[DeadManCrawling]

There are some landlords who operate with a lighter touch, too. You may be able to find one.

We have a rental for our son, who is a minor, in Orlando, FL. The tenants have been there for 8 years or so now. We have never intruded on the property, and they have been great. They can remodel within reason, anything they want. They have done so, in terms of paint and carpeting, and have deducted the expense from their rent. Of course, they use companies we work with and we get bids and receipts directly. But, the tenant chooses the styles and colors. It works well for everyone concerned.

We have not had any issues with upkeep or maintenance, and they may buy the house from us. If that happens, we will sell it at a very good price, taking into account the years of good rent history and their genuine care for the house and our business relationship.

[samson420]

I am still looking for options. . . . That really is my biggest scare.

If I get a private type lender for lets say for a 36 moth term. I get the house for 75k. When it's time for me to refi the thing it's only worth lets say 55-60k.

Now what? I can't get financing, yet again.


The renting market is booming for this reason. . . . I know that, so do the investors.

[ForumReader]

I agree with the posts above about obtaining a mortgage so close to being emerged out of BK. I would wait a few years before shopping around for a mortgage. Meanwhile, like the poster stated above, renting is not too bad especially if the landlords are fair and reasonable to work with. Goes both ways, really, the landlords and the tenants. Yes, I feel the same way about feeling funny asking for permission about certain things before getting them done such as getting a diseased tree removed from the front yard or paint a different shade of color in a bedroom!

[yourbabymomm]

Renting isn't that bad of an idea. There are laws in place to protect tenants should the landlord become a foreclosure.
One thing you can do is check court dockets online to see if anything is brewing; foreclosures nowadays seem to take forever anyway.
When we rented our current townhouse we had the landlord put a provision in that if he were to experience foreclosure that he notify us immediately and also let us out of the lease early.
Not too familiar with the new laws but I believe the bank has to honor the rest of your lease and becomes the landlord, long story short. Not sure if this is the case for everyone, but I believe it's at least for Sallie Mae.
I really don't mind renting right now and it's actually kind of enjoyable. If something breaks, I am not responsible (such as appliances that fail, etc). I don't have to worry about property taxes, etc. etc. If you take your time and look for a private party to rent from and become friendly with them you can get a good idea of their long term intentions, possibly purchasing the house down the line.
The only thing I don't like is asking permission to do certain things, like painting or what have you but our landlord is pretty cool about it. They're not all like that, but you have a choice when you rent from someone and can get a pretty good idea what it's going to be like after meeting them a couple of times, or just conversing back and forth with phone calls or email.
Didn't mean to ramble!

[DeadManCrawling]

My wife is in the real estate industry. She works with many "hard" or "private" money lenders. Right now, she is seeing the following:

Clients are choosing not to lend. Many believe the market will decline by 20-35% in the next 18 months. They are not willing to take that kind of risk, regardless of how large a downpayment you have. The appraisal process is completely screwy right now, and it is difficult to really know what a property is worth to begin with.

Instead of lending, especially on lower price houses, her clients are shifting toward becoming landlords. They get a more immediate return, and a higher rate of return, if they buy a house for 60k and rent it out for $800/month. The rental market is on FIRE in our area, because of the huge number of foreclosures. This may change later this year, as banks unload masses of shadow inventory. This varies by neighborhood, but many of her clients are planning to be landlords for the next 5-7 years while their traditional lending activity recovers, and the housing market tries to become somewhat normal. If it ever will.

The money is still out there, but is being utilized differently, at least among our friends and associates.

[Ugh07]

the fact that its 50k actually makes the deal harder not easier, small loans yield small profits. If you had 25k down you should be able to find a reputable hard money lender to lend you the rest at 13% for 5 points.

[samson420]

I know I can wait. . . . But, I am so use to having a hause. I just hate the idea of renting out here. I see so many people rent for a few months then the owner lets the house go under.

[HHM]

I have been looking around and still can't find anything that is really good. These private finance type people seem kind of shady to me.


I know I can do 20k down on a 70k house, but I just can't find anything legitimate myslef.


It does seem like a joke, it's only 50k. I can pay that off easily in 5 years.

It's simply a factor of the lending market you are in; the home buying incentive expires in 2 1/2 weeks, the fed is no longer buying or backing mortgages, it will actually be tougher to get mortgages this year than last. The lending restrictions are extremely tight, there is very little wiggle room, you could have 50% down but because of the BK within 2 years, you would get denied.

I think you are trying to jump the gun...we are going to see a double dip in the housing market. There is a huge inventory of foreclosures still to complete, the home buyers tax credit is going away, and interest rates are slowly ticking up and with near 10% unemployment, there are simply not enough buyers for the houses on the market.

[samson420]

I have been looking around and still can't find anything that is really good. These private finance type people seem kind of shady to me.


I know I can do 20k down on a 70k house, but I just can't find anything legitimate myslef.


It does seem like a joke, it's only 50k. I can pay that off easily in 5 years.

[yourbabymomm]

I would ask someone in the biz. $20k down on a 70k house is almost 1/3. That might overshadow credit issues. On another board I have read about things like this, ask around and see!

[samson420]

Realistically, Private money is hard money. "Private Money" as its perceived by most is an urban legend. Hard Money for the most part comes from individuals. I often arrange for "private money" loans from Drs. and Lawyers to homebuyers/investors, the terms are no different than what would be considered "hard money".

The only difference that I have found is that the term is a bit longer.