My husband and I have a house and are going to sell it for a new one(we want to buy a larger home, in a different area). He doesn't have the best credit. He has 2 repossesions (both voluntary surrenders) and few small charged off debts. When I contacted the mortgage companies most said no and one said we should sell our, pay off the bad debt then rent for 6 months. Sounds like a good idea, but I'm afraid we will sell, then be told we can't buy anything. I don't want to rent for the rest of our lives. We've already gotten used to owning. I have good credit, and they told me I could buy a house no problem, but I just finished school and still not working. Financially what should we do? Stay in our OWNED home until we can (if ever) buy a new one, or take the risk of selling and then have to rent for another 10 years or so.
2007-09-13 07:49:58 · 8 answers · asked by Carrie 3 in Business & Finance ➔ Renting & Real Estate
also, the bad credit he has can not be paid out of our pocket. It's too much. We are talking in the tens of thousands. We can only pay it by selling our house and using the equity. We need a bigger house because our family has grown and our kids need the room and in a safer location.
2007-09-13 08:01:24 · update #1
If you have good credit and you can get a mortgage then go ahead as planned. There are a couple variables you need to take into consideration before you do so however; for one, the rapidly declining market. Right now it is definitely a buyer's market - meaning a LOT of people are desperate to sell. In your case, this could be a good and bad thing. Good because it could mean you can find the house of your dreams for a below market value price. Bad because it could prove difficult to sell your existing home.
My advise would be to buy the new house (after you sell the current one) under your name and credit, then have your husband added to title at closing.
The thought process the loan officer that advised you to sell, pay off and rent is following is that the debt you pay off would raise your husband's credit score but would take 30-90 days to reflect on his credit report.
In the end, I doubt you would end up renting for the next 10 years. If push really came to shove, you could get a hard money (equity) loan to purchase the new house and then refinance once your husband's FICO has gone back up. The disadvantage to this approach is that you would be looking at an interest rate of 10% and up.
2007-09-13 08:03:18 · answer #1 · answered by Solstice 3 · 0⤊ 0⤋
I'd take the chance. I have a friend in a similar situation who recently bought a house and had a repo, some charge-offs, etc. So I'd imagine it wouldn't take too much polishing your credit to get another house, and you should be able to do it in 6 months. If not, you're credit is still better off and it will be less than 10 years before you can buy a house.
Talk to a financial company too, you can usually get free advice from them.
2007-09-13 07:56:53 · answer #2 · answered by JR 2 · 0⤊ 0⤋
Evan if you pay off the debts, they will still remain on your credit report for 7 years. and it will be hard to get a mortgage especially the way things are now. Stay where you are is the best thing you can do right now
2007-09-13 10:27:23 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
First of all, I would really love to recommend Dave Ramsey at www.daveramsey.com. This will help you soooo much if you are ready and willing to stick to the plan. Second, sell the house you live in and pay off husbands old debts. You will not have to rent long if you go by Dave's snowball plan!!! Live like no one else, so later you can live like no one else!!
2007-09-13 08:50:40 · answer #4 · answered by T.R 3 · 0⤊ 0⤋
Continue to live in your current home until you have a job - they won't give you a new loan without one.
Who says you'll have enough equity for a down payment after paying off his debt? You need to think about that too - not paying his debt isn't an option.
Sometimes we want what we can't have - such is life.
2007-09-13 08:34:40 · answer #5 · answered by Roland'sMommy 6 · 0⤊ 0⤋
"to construct a house or a lodge, the participant ought to own all residences in a shade group. progression ought to be uniform throughout a monopoly, such that a 2d domicile won't be in a position to be geared up on one belongings in a monopoly till the others have one domicile." I have been on condition that from Wikipedia. I even have performed this interest on account that i grew to become right into a sprint youngster, and that i've got performed distinctive strategies with distinctive human beings. each and every so often we performed like your mom is describing. different cases we would purchase regardless of shall we've the money for, yet you won't be in a position to place a 2d domicile on a belongings except all the different residences have one domicile already on it (like Wikipedia says). desire this enables.
2016-11-10 08:30:41 · answer #6 · answered by ? 4 · 0⤊ 0⤋
stay where you are. why is everyone in a hurry to buy bigger more expensive houses? I'm in my first house less than 2 yrs (only 1100 sqft) - just bought it at age 46 and plan on staying in it until I retire, then plan to build my own retirement house with no mortgage. It's a roof over my head and I'm happy. small yard, off street parking, safe neighborhood. small town in distant Philly suburb. It's all I need - and because I'm not stretching myself housing wise, I hope to be able to retire at age 63 from the rat race and work part time at the most
2007-09-13 07:57:31 · answer #7 · answered by Anonymous · 0⤊ 1⤋
I would keep the house you have until you clean up your credit. Make sure you can pay for what you purchase and put some money into savings to help when you do move.
2007-09-13 07:55:03 · answer #8 · answered by ralph 5 · 1⤊ 0⤋