| I could give the answer to this query by simply saying, “Pay Cash.” But I am not a rotten guy, and I am not into tricking people. So I will give you the real answer. |
| As a rule, when you go to buy a house, you don’t need exceptionally good credit, because the house is it’s own collateral. That is, the bank knows you cannot pick the house up and move it to Mexico, or anyplace else. So, you “mortgage” the house, i.e., you allow a “lien” to be put on the house, guaranteeing that you cannot sell the house, or otherwise dispose of it unless the bank knows about it and assuring the bank that you cannot cheat them. As a rule, all of this involves a lot of paperwork, and there are companies that take care of all the paperwork and assure you that there are no encumbrances on the house. That is, nobody else has a lien on the property. Not even late taxes. These companies are called “Title Companies” or escrow companies, or sometimes, the job is done by a lawyer. They act as a “Third Party” in that they also hold all the money you pay in “escrow” and when the deal is done, they disburse the money. If this wasn’t available, a crooked salesman could get a down payment on a house, and disappear. Keeping your money, and giving you nada. It has happened. One enterprising fellow rented a house and then proceeded to sell it, a dozen times or more. He almost got away with it. If he had skipped with the first half dozen down payments, he probably would have gotten away Scott free. Unfortunately, he got greedy, as do so many crooks. But before you get to this point, you have to have some loan company give you the loan with which to buy the house. If your credit is half-way good, you will probably get the loan. If, on the other hand, your credit sucks, that is, if it is totally bad, you are in trouble, But not entirely out of the picture. |
| Buying a chouse with bad credit is not easy. I never said it was. But it can be done. How? Look through your classified ads until you see a house that says, “For Sale by Owner.” |
| If you live in a fairly large city, there should be several of these ads in each days paper. It may take awhile to find the house you want. But when you do, you can usually buy the house with bad credit. The Seller may want a hefty down payment, and if you cannot pay that amount, your job to talk him into taking a smaller down. |
| Buying the house also requires a “Motivated Seller.” This means the owner of the house wants to sell the house really bad. He has had trouble selling the house, or no luck at all, and is getting tired of fooling with it. You could say he almost ready to give it away. Or, he has a job transfer and wants to get out of town in a hurry. |
| I once bought a house from a fellow in Oklahoma. The house was here in CA. He wanted to sell the property so bad that I honestly believe he would have sold it to me for half of what I offered. My loss. |
| The way you find these good deals is by studying the news paper classified ads, every single day, and check on every single house that is listed for sale. You never know what kind of deal you can run into. But, like playing the lottery, you can’t win if you don’t play. You study the ads until you practically have them memorized. Then, when a new ad appears, you will spot it immediately. |
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Also, there are government agencies that will deal with people with bad
credit. HUD, VA, Fannie Mae, Department of Agriculture and Habitat for
Humanity are a few possibilities and maybe a few others. Check with your
Real Estate agent.
If you want to buy a house badly enough, there is always a way. |
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Harley Sanders |