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Im in foreclosure and have HORRIBLE credit. HOWEVER, I just got an awesome job at a great salary and the bank is offering me to sell the home to me at slightly more than half of what I paid for it.

Where can I go to get financing?

3 Thoughts on Where do you go to get a mortgage to get your house OUT of foreclosure?
  1. Reply
    Biggie @ Arbor Mortgage
    November 9, 2011 at 4:22 pm

    You are probably looking at a hard money lender, with insanely high interest rates. I don’t know what state you are in, but try Bond Corportation – Grand Rapids, MI 616.243.7463.

    Good luck.

  2. Reply
    November 9, 2011 at 5:05 pm

    Let the house go. Your credit is already ruined. Getting a high interest mortgage is not going to help you.
    How can the bank be offering to sell you the house for half of what you paid? Don’t you already owe the balance of the original loan?

  3. Reply
    November 9, 2011 at 5:35 pm

    Just having a higher salary after the initial hardship leading you into foreclosure isn’t going to be good enough. Since you “just got” the job with a good salary, you don’t have any stable job history to show with your current employer. So just having a better job, although it is a positive, is not enough to qualify for a new mortgage right after foreclosure.

    If you have some money saved up to use as a down payment, you might be able to persuade a foreclosure bailout lender or a hard money lender to give you a new loan. But they usually don’t do properties with less than 30% equity in them, so you’ll have to put down a good amount of money to qualify for the loan.

    The fact that the bank is willing to sell the house back to you for half of what you paid for it is somewhat irrelevant to you being able to get a loan. The house may now be only worth half of what you originally paid for it, if property values have fallen. In that case, the loan you get on the property will be for 100% of its new market value, unless you put something down.

    Having a good salary now definitely works in your favor, but it’s not enough on its own to get a new loan to save a house from foreclosure. If you have any savings or assets that can be turned into a significant down payment, then you might be able to get what you are looking for. Otherwise, you can try a few different foreclosure lenders, but don’t be surprised if you don’t have much success.

    One alternative way to get the loan would be to have someone with better credit purchase the house and lease it to you. If a friend or family member could do that, then you might be able to keep the house and pay a low interest rate. Then just keep up on the payments and work on your credit for a few years until you can refinance into your own name.

    Good luck.

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