Life After Foreclosure?

[RonH]

I've heard that purchasing a home after a foreclosure is a 4-7 year wait and rightly so I suppose.  I have a foreclosure that just went through. Coincidentally my wife and I have caught the investment bug and have spent the last 3 months educating ourselves on the different investment options and how to go about implementing them. We have a 3 year plan however that we have afraid may turn into a 7-10 year plan seeing that we may have to wait 4-7 just to qualify for our very first investment purchase.

Is there any avenue that we could take to become buy & hold investors sooner that the normal wait? What are our options for getting started sooner rather than late?

Thank you very much!

[herbster]

Ask a Mortgage Broker, I think its more like 3 years. In the mean time find a Land Contract(CFD) home. Herbster

[Summit]

There are more then one option that you can use. I personally have not used my credit to purcahse anything in the past 11 years and have made a very nice living for family. I totally shifted what I did when the economy went to crap. And have been having the best 2 years ever. While I would like to write (TYPE) it all here I would be here for a few days. And to be honest I am a little to busy for that right now. If you would like I can email you my plan and how it works when I get a chance to get it done.

[RonH]

In the mean time find a Land Contract(CFD) home. Herbster

What is Land Contract and how does it get you around finanical issues?

There are more then one option that you can use. I personally have not used my credit to purcahse anything in the past 11 years and have made a very nice living for family. I totally shifted what I did when the economy went to crap. And have been having the best 2 years ever. While I would like to write (TYPE) it all here I would be here for a few days. And to be honest I am a little to busy for that right now. If you would like I can email you my plan and how it works when I get a chance to get it done.

This almost sounds like a infomercial, but I would still like to see your plan.

[Summit]

Thats the crazy thing is I have nothing to sell just like helping others!

[RonH]

Ok, I'd like to learn more of what you are talking about.

[Mdhaas]

What is Land Contract and how does it get you around finanical issues?

It can be known as several things rent-to-own, Contract for deed, land contract, etc The basic definition/premise is as follows:

a real estate installment selling arrangement whereby the buyer may use, occupy, and enjoy land, but no deed is given by the seller until all or a specified part of the sale price has been paid,

[RonH]

Can you by REO's or SS's this way?

[orion2730]

Thats the crazy thing is I have nothing to sell just like helping others!

Hay new here,  would love to know info , i am so stuck on how to move forward , thanks .

[obiwan1250]

Can you by REO's or SS's this way?

No.   An installment contract purchase (a/k/a land contract or contract for deed, or just a contract) is simply an owner financed purchase where the agreement is between you and the owner for payments and and an eventual conveyance of the deed up satisfaction. 

Many owners of rentals would be idle candidates to sell on contract when they get on in years, because would receive a similar income stream to what they had when the house was a rental, yet the occupant would likely take better care of the house.  Usually, you'll need from 5-10% down, although I used to buy on contract for just a couple grand, or even nothing down (early 80's, when Reaganomics killed the RE market and everyone was losing their shirt). 

Sometimes, contract terms are available even for houses on the MLS, though the down stroke is usually higher because the seller has to cover the commission.   I'd go to your local REIA meetings and scout for people who might sell on a contract.   The key is that most of the time, your FICO score is much less of a factor with a seller than it is with a lender. 

Be aware, however, that should you default on payments, 60 days and you're out.  It's a good idea to have some cash reserves before you commit to a contract.  FWIW. 

[Nick Brian]

Thanks everyone. It's nice post with valuable comments. All confusions gone. I was thinking the same way but I couldn't explain. Thanks John.

[MichaelQuarles]

I bought and sold 234 houses in 05 and never applied for a loan... Learn sub 2 investing and seller financing strategies... Understand private money and youll never have to worry about your FICO score3 again.

[Summit]

Once again I totally agree with MichaelQuarles I have bought more houses with sub2 or seller financing then I have with a loan. This is prime time right now everyone needs or wants out!

[RonH]

I bought and sold 234 houses in 05 and never applied for a loan... Learn sub 2 investing and seller financing strategies... Understand private money and youll never have to worry about your FICO score3 again.

Yeah but the market was thriving in 2005 so doing sub2 would make a lot of since.  People had more equity in their homes then they knew about.  You could sub2 it fix it up for a massive profit.  I just don't think that there are that many homes out there today that have much equity if any at all.  I think the wave of the future is short sales.

[Summit]

  I think the wave of the future is short sales.

I think the wave of future is to have a open mind to everything when it comes to Real Estate. The key here is simple some deals are great sub 2s and others are great flips while others are great short sales. And yet others are great Loan Mod Sub2. It all really depends on the deal.