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I got wiped out in the crash of 2008.

I want a cheap rural house that is 35k (yes $ 35,000) with 10 acres.

I have 35% down (Over $ 12,500 cash)

I make 44K a year and have had the same job for 14 years.
I have two good secure loans (car & RV)

But I had some other credit cards go terrible (bought stocks with them “Stupid”) and I can’t pay them off. They have been bad since Early 2008.

I currently have NO mortgage. Again I make 44k a year, the house is 35k, I have over 35% down.

Is it possible that I get a mortgage loan?

Assume my fico credit score REALLY sucks.

Would I have a better chance with the credit union I had the two good loans through.

Again this is a secure loan, (bank can repo the house & keep my down payment) if I default. Don’t know if that makes a difference.

Anybody know? Thanks.

(Please no lectures about the credit cards – the banks F-ed up too in 2008 & needed the US govt (you and me) to keep them in business. Unfortunately, I couldn’t turn to Uncle Sam to bail me out.)
StevenW: Obviously you know nothing about fractional reserve banking. After the banks took the bail out money and inflated it by lending it at 90% and holding 10%, I’m sure jumping for joy that they paid it back. Circular lending & they inflated the money supply, then paid it back with their own lendings.

Biggest sham. Banks really have no honor. Unfortunately, they rule our economy though so I have to borrow money from one for two years (perhaps even one) to pay this off.

MIAMI – Like many home owners, hotels are starting to drown in debt.

They have been enticing travelers all year with sweet deals: credits for in-house spas and restaurants, up to 50 percent off five-star rooms, even free nights.

But all that discounting hasn’t stopped occupancy from dropping an average of 10 percent. The result? Hotel loans have begun falling into delinquency faster than any other kind of commercial real estate debt.

The rising defaults paint a grim picture for an industry with increasingly more rooms than guests, and more hotels still opening every day. It’s a problem that could get worse before it gets better, with demand expected to remain weak and ambitious new projects planned before the meltdown worsening the room glut.

The oversupply means room rates should stay low for at least another year, good news for consumers but not so great for hotel owners and the banks that lent them the cash to build or buy.

The rise in delinquencies is sharp. Five times more hotel loans are behind on payments this year than in 2008, according to mortgage data firm Trepp LLC, which tracks those traded by investors. In October, 8.7 percent were distressed, compared with 1.5 percent last year.

That’s almost double the 4.8 percent rate for commercial property and the 4.5 percent rate for stores.

9 Thoughts on Could I even dream of a home loan? Terrible Credit but 35% down.?
  1. Reply
    melito
    February 23, 2011 at 9:23 pm

    Honestly speaking, your credit score may not be as bad as you think. You could have a 600+ score and not even know it. My suggestion is to try your credit union. They are usually the most lenient and understanding and if you already have a relationship with them this might make it easier for you. If they say no they will normally let you know what you can do. Also if the credit cards are equal to or less than your down payment money than pay those off first. Good Luck and keep me posted if you can.

  2. Reply
    My Take on It
    February 23, 2011 at 10:19 pm

    You will NOT get a mortgage with a traditional bank. They will not touch you even with that 35% or whatever down. Also, the amount of the loan is too low for most banks to bother with, and being the property is rural, you would run up against issues there too.

    Now, having said that…the ONLY creative way I can think you may be able to get this is to approach the seller ( I am assuming he owns this place outright ) and ask if you can do either a land contract, contract for deed, lease option etc. With your large down payment, and them being able to take back their property AND have your down plus payments you would be making, it is a win win situation, if you ask me.

    If you do get the owner to agree to this arrangement, be sure to get a real estate lawyer to draw up papers and advise you.

    Good luck!

  3. Reply
    bdancer222
    February 23, 2011 at 10:26 pm

    Nope. Mortgage lenders will require that you settle all derogatory items before approving a loan. YOu need to negotiate settlement of those credit cards. You can probably get a settlement for 50%, maybe less if you’re good at negotiating. Lump sum gets the best deals. Get any settlement agreement in writing. Keep that agreement along with your payment proof, forever. Do not give collectors direct access to your bank account.

    Your second problem is that loans of less than $ 50K are considered subprime. Since the meltdown, subprime loans have been few and far between. Even if you had good credit, the interest rate would still be high.

    You might have better luck with a lot bigger downpayment — like the 50% range.

  4. Reply
    Sharon T
    February 23, 2011 at 10:48 pm

    You are a good candidate for a private mortgage. If the seller can’t or won’t finance it, do you know someone with extra cash who will make you the loan secured by the property? Expect to pay about 8% interest.

    With your income you should be able to pay it off quickly so that interest rate won’t hurt you badly.

  5. Reply
    StephenWeinstein
    February 23, 2011 at 11:30 pm

    The banks already gave back the bailout money. They did not keep any of it.

    You cannot get a mortgage loan, but you can buy a house. Just put down 100%.

  6. Reply
    Walama
    February 23, 2011 at 11:52 pm

    If you pay off the cards and can attain a score above 620 it may be possible. But complaining about the stock market crash and the bailout will make people very reluctant to lend you money.

  7. Reply
    THE BIG DIPPER
    February 24, 2011 at 12:10 am

    that’s correct, the next wave of foreclosures will be in the commercial real estate.

    I hope there isn’t a bailout, these people have been exploiting the average american for years. I don’t feel sorry for any Hotel that charges its customers extensively more in “tourist” traps than they do every where else. they were paid extremely well for their lack of customer service and they should have planned for this.

  8. Reply
    chinablix
    February 24, 2011 at 12:22 am

    Without hotels the business man can’t travel
    Without business travel, the economy shrinks

    The answer is, maybe they will get some massive tax relief, but a Detroit bailout, I doubt it.

    .

  9. Reply
    RU Quazee
    February 24, 2011 at 1:12 am

    Sure, why not add them to the socialist takeovers? We already have govt owned car companies, banks, insurance companies, soon to be health care industry .. . a few good hotels (used to be anyway, til govt takeover) would fit right in.

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