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Hi,

As you can imagine by being on this site I dont have greatest credit.I am currently goin through a BK. :oops: When I am able to get resituated, I am REALLY interested in getting into Real Estate, Hopefully getting a lease option as Home, and then building up from there. Anyway,Is this and how is this possible, with Craptacular credit??? Home was purchesed by the owner Sept. '04 (Public Records). Hous vacant and in need of rehabbing.

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If you are a long term thinker/planner, here is what you could do.

Get a lease to own agreement with the current owner, with an established purchase price 2 years from the date of signing, so that any time in that period you can "purchase" the home. After one year in the home, you can purchase the home, using current appraised value as your price. What is good about this is that lets say the home is worth 100 now, and a year from now it is worth 105K. You get the loan based on 105K. Then you get a loan at 95% LTV, rates and getting the loan much easier than if you need/want a 100% financed loan.

Every month, make sure that you write your rent check on the first, and that your landlord cashes the check right away. This will give you 1 year on time rental history.

Open up or get "cleaned up" 3 credit cards and get an installment loan for 5K+, where the payments are over 151.00 per month.

At the end of the year your credit should have improved a lot.

Depending on the state you are living in, you can get a 100% (but hopefully only need 95%) financing, and purchase the home. If it takes a little longer, then you have given yourself a 2 years "window" to purchase.

Your goals should be to reach 640 mid score, but if you can not get there, then the steps are in 20 point jumps normally, ie 580 is better rates than 560, next 600 etc.

Take care of your collections now, as your scores will go down for a while after you have paid them, if you are not able to get the trade line deleted etc.

Remember that a rule of thumb is that it takes about twice as long to repair your credit as it did to mess it up, but if it takes 2 years, you will be 2 years older if you work on it or if you don't. Sounds like trite advice, but true.

Best hope for the holidays, sorry for the delay in getting back with you.

Charles

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