Bad Mortgage Bad

What's going on with mortgages?

I’m curious to know what peoples thoughts are on the current mortgage situations. There are many banks that are filing for bankruptcy, due to sub prime and there are many of them that are restructuring their business in lending. Now it’s getting harder for people to get loans for a house, especially for people that live in places like California where the cost of living is high. Some banks are changing their qualifications for applying for a mortgage, such as higher down payments and higher FICO scores to qualify for a mortgage. The market right now is at a small slump, but I can see it rebounding soon.

No Credit Bad Credit No Problem [Part 2]

Answering a questions

It's good to have comments on my blog, but I would like to answer a question that was brought up during my last post. "How can you afford to pay a mortgage if you have bad credit? Well for starters there are some people that filed for bankruptcy for starters. For some people it's a fresh start, but the downside is your credit is bad for about 7 years. I know someone that filed for bankruptcy and now has enough money to pay for a mortgage, but there are no lenders that will lend him money because of the bankruptcy. There are people out there that have bad credit and still can afford to carry a mortgage. Basically people that rebounded from past problems with credit can use these methods to acquire a house (Sellers financing and lease option).

No Credit Bad Credit No Problem

Getting a house with bad or no credit.

Lease with option to buy

With this method, you can get into a house and own it without a credit check. Sometimes a seller might want to check your credit but sometimes they don’t. They usually do a background and work verification check to see if you’re able to pay. Anyways, a lease option to buy is when the seller leases the property to the buyer for a fixed period time and at the end of the lease period the buyer is given the option to buy the property.

Sellers financing method

The seller gives financing to the buyer and carries the first or sometimes a second mortgage on a private real estate contract. If the buyer fails to make the mortgage payments, the seller can take the property back and the buyer loses everything he or she put into the investment. This is a very risky way of getting a house without credit, but if this method is executed correctly the house will be transferred over.

Ten Mistakes

Top 10 mistakes people make when buying a house.

Well I made a promise from my last post to post the top 10 mistakes a person makes when buying a house. So with out further a due, the top 10 mistakes.

• Picking a bad real estate agent
• Choosing the wrong mortgage
• Not getting an inspection on the house
• Choosing a real bad community
• Not going to the neighborhood a second time
• Not planning for closing costs
• Not setting a budget for yourself
• Buying a house you can afford
• Not talking with the neighbors
• Not knowing what houses really cost.

(Note: There are more mistakes, but I just want to list 10.)