All Forum Posts by: Christina Fletcher

Thanks for the advice Jon. You've given me some more things to think about.

As far as our financial picture goes, we are in a good place with our income vs. debt, monthly cash flow, and payments. Our credit scores just need time and continued good history.

The lease to own was a shady deal and we always paid our payment on time and improved the property. We discovered later that we were given a bogus appraisal and were stuck making large monthly payments for the house and not really having the option to purchase it and found somewhere else cheaper to live.

As for the house that I'm interested in. I wouldn't pay the $80k for it either. I agree that it's overpriced and had $60k or less in mind as well. My family is in home construction and remodel so I'm aware that it will be at least $10k and upwards.

I would never stiff my dad on the rent and if something came up where we were not able to make the payments. I would do everything in my power to either resolve the situation or help him find someone else to rent it.

Why does everyone automatically assume that you are a deadbeat if you've had credit problems? No one ever takes the time to consider that maybe you had some medical bills, tried to keep things going but lost your job and just couldn't pull out of the spiral.

I'd be interested in working with another investor to buy a house if they were ethical and legit. We were totally scammed before and I can't afford another mistake like that.

Thanks for your advice and comments.

I need some advice from people that know enough about the industry to think creatively and innovatively about this. I'm very much a "where there's a will there's a way" kind of girl and I'm convinced that there is a way to get this done. I apologize in advance for all of the background.

My husband and I fell on hard times with job-loss and illness and had to file a ch7 that was discharged 3-29-07. We lost our house in the bankruptcy as well. Then, we got into a bad lease to own deal and lost about $5k (option and monthly credit) on a house that ended up losing so much value that we couldn't purchase it. The owner was about $35k upside down on it.

We are now in an apartment with three kids and a large dog. I desperately want to get into a house. We've been paying our bills on time and rebuilding our credit but our scores are only in the mid to high 500's.

There is a house that I have always admired that is on the market. It was sold to the bank at a sheriff sale this past June and the basement was flooded only days later during the awful floods around that time. They have stripped the drywall and carpet out of the basement (bi-level). It is list at around $80k but could sell for $110 - $120, even in this market. It's a 3 bedroom bilevel with 2 baths, sunroom and small inground pool and two car garage.

I would like to buy the house and live upstairs while we finish the basement. Problem is, I don't think we can get financing and I won't have a decent down payment until we get our tax return early February. I have a creative solution though and wanted some advice.

My dad has sparkling credit. He has talked about REI for several years, but never made a move. I would like to approach him with an offer to purchase the house with a 203k mortgage and we can move in and rent the property from him until we can get a mortgage at a decent rate (either this April or next).

I would be able to give him a down payment of at least 3% in February and most likely pay an extra $100 over the mortgage until we can finance. If I'm correct, as long as we make 12 mos payments on a lease-option, it is considered a refi, right? Then we will purchase the house with our own mortgage and figure in an additional $5k for his profit into the selling price. This would give him cash to reinvest and a return on his investment/time/trouble.

If I understand it right, the 203k would allow for him to finance the repairs and the mortgage payments during the repairs. If we stretch the repairs out through January, which shouldn't be hard to do considering the whole basement needs to be completely redone, he won't make a payment until we are in there to make the payment for him.

If he can show that he will have a tenant for the property once rehab is done, can that go towards his income for consideration?

Am I nuts or is this viable????