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Posted: Thu Jul 12, 2007 9:08 am Subject: Buy a house with bad credit?

Is it possible to buy a house with bad credit and large debt

Posted: Thu Jul 12, 2007 9:12 am Subject:

Welcome to the Community Very Happy

I'm not sure how possible it is, but if you found a lender, the rates would be sky high. Why not try to get your credit improved, debts caught up, and then try for a home? If you tell us more about what type of debts you have, we can direct you in the right direction to start becoming debt free. Good Luck-keep us posted..Karen

Posted: Thu Jul 12, 2007 9:40 am Subject:

At this situation, there is no point you should think of buying a house because of your bad credit and other existing debts. No legitimate lender will be willing to offer you new credit. Even if anyone does, the interest rates will be very high like Bossy said above. And there are so many scammers who will give you hopes of depositing the money in your account even with bad credit. Later, they will run away with your money.

First try to improve your credit ratings. Take a debt management program if this helps in making your repayments. The consultation company will negotiate with your creditors for reducing the interest rates and set a suitable payment plan. Once the accounts are shown as paid off in your credit file, your scores will start moving up.

Posted: Thu Jul 12, 2007 10:07 am Subject:

I have to chime in here and say please take the advice of the members above - I've been there, and I can tell you first hand what happens when you buy a home with bad credit and debt looming over your head. You end up filing Chapter 13 bankruptcy to keep the house (which drastically reduces your income for about 3-5 years, because the Chapter 13 payments are garnished from your paycheck), or you end up in foreclosure, which places another black mark on your credit. Either way, your credit will end up in worse shape than it is now.

Pull your current credit reports from www.annualcreditreport.com. This is a free service, once per year, or when you have been denied credit. Review everything on your credit reports, dispute any inaccurate accounts, and start working on paying off debts on your report, starting with paying off the smallest debt, and paying small amounts on the larger ones at the same time.

Posted: Thu Jul 12, 2007 10:49 am Subject:

I agree with the above advice.Clean up or fix your credit before buying a home.A mortgage with bad credit would be very expensive!!

Posted: Fri Jul 13, 2007 5:30 am Subject:

You might find some lenders who will give you credit on less favorable terms. But that is not going to help you. First try to fix up your scores, trust me with improved score you will get good rates and better interest rates from the lenders.

Posted: Fri Jul 13, 2007 5:44 am Subject:

I agree. Fix your credit first and then buy a house. You might be thinking now, however, about how much house you can afford; where you want to live; etc. Maybe looking and dreaming a little bit will encourage you to resolve your credit problems more quickly.

On a rare occasion, you might be able to find a "rent to own " deal that would fit your needs. When the time comes to buy, there are a number of low cost options in buying a home, including fixer-uppers, auctions, etc.

Best of luck!

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