Jump to content

Need a Mortgage


kleep
 Share

Recommended Posts

Last year I was laid off work and had no money. This year I got a new job (March) and things are better. I have a BK from 2001 that I can't get off CRs. I've got lots of old collections that will drop off in the next couple of years but not soon enough. I'm doing everything I can to get my scores up, but right now I'm struggling for 500.

My parent's house is currently in Probate and will be mine in 6mos. However, there is a state bill relating to Medicaid that must be paid that, with funeral/burial/attn fees, will be about 80% of value of house (according to PVA). I think the house is worth much less due to its condition and have a realitor friend coming soon to do a 'friendly appraisal' just to see.

With market values so low, and my score so low, I just don't see how I can pay all of this off without a mortgage and I don't think I can get a mortgage in time.

If Probate ends and I can't pay it off, I have to sell the house and I won't get enough - if it sells at all. And I worry what having the state take over and auction the property might do to my credit and therefore future attempts to buy a house.

This will be my first mortgage and I'm a basketcase. Also, after having this house in my name, will it eliminate my chances on getting the 1st time homeowner loan perks?

Link to comment
Share on other sites

There is no other insurance or equity of any type - except the house. When there is a house involved (or asset of worth) the state requires that Medicaid be paid back with a few exceptions (spouse still lives there, disabled children, etc) that do not apply to me. The probate attorney is working through this, but has no idea what will happen with my credit.

Link to comment
Share on other sites

Once probate is done, the house will be in my name. If I can't get a mortgage on it in order to pay off all the state Medicaid bill, they will take the home and auction it to get their money. My credit question is two fold: 1)will the state "taking" the house to sell it affect my credit and 2)will the fact that I have a house in my name change my ability to get some of the perks given to 1st time homeowners?

My other question to begin this thread was if anyone knew a mortgage lender that could work with my crappy credit. Since I'm living here basically rent free while the house is in probate for the next couple of months, I'm trying to clean up my credit, but their won't be time to do too much.

Link to comment
Share on other sites

You need to get those scores up some. Do not even attempt it without a 520 mid score and 580 is better. Not good, but possible. If you pay everything else on time between now and then and keep up your repair process, maybe you can get there. I used to work for a company called mortgage elite. They get you on fees, but use 68 different lenders, they even had in house financing. Your BK is over 2 years old, so that helps. Just make sure there are no lates for as long as possible back from now and keep it going. Fortunately, it sounds like a refi, not a purchase... that is more flexible. The mortgage is not in your name, so it would not be listed on your credit that way as a TL. I don't want to speak wrong for question 2.

Link to comment
Share on other sites

Hi Kleep,

As far as the actual rates/programs/getting a mortgage goes, in the industry there are no "perks" to being a first time home owner. Borrowers are much less of a risk when they have owned a home.

You can check with your local government agencies (City,county,state) to see if there are any grant programs that may help you with assisstance programs.

Charles

Link to comment
Share on other sites

This is just my opinion, but I think Ihatecas is right. You wouldn't get the house until its settled. What I think they do is auction or sell the house off as still belonging to your parents, and if they don't get enough they have to write off the rest without going against you. It would be like you were never entitled to the house. Unless you signed something stating financial responsibility for their medical bills, I don't think they can put anything against your credit.

As for the house, if you think the bills are more than the value of the house, you wouldn't be able to borrow that much money against it. I would just let them take it. When they put it up for auction or sell, the best they can hope for is 90% of the value. If you really want the house, you can bid or make an offer on it just the same as any other third party. Then your next problem is qualifying for a mortgae. so You want to start working on your credit ASAP!

Again, this is just my opinion. You really need to get some good legal advice. Not all attorneys are up on credit law so the probate lawyer may not have the answers.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.