Foreclosure in June - want to buy house from father for $60,000 that appraises at $90,000. Is there any way?
Question:
Answer:
The lender will use the lower of the appraised value and transfer price as the value of the home. So it will be like there is no equity in the property when you get it from your father. In this type of transaction, there is no gift of equity imputed.
There are subprime lenders who might work with you, but at a cost. A high cost. And once you're in the subprime market, the cards are stacked against you. The subprime lenders do everything they can to keep you as a customer.
Might your father consider some sort of lease-to-own arrangement for a couple years until you are in a better financial situation and can get a better mortgage?
you need to be 12 months out of the foreclosure or NOD and you can actually use the difference between the value and purchase price as a down payment or what we call in the industry a "
gift of equity" you could also set up a land contract with your father if you cant wait for your foreclosure to be 12 months past.
You don't need money down since you are borrowing less than 80% loan to value.
Sure some lender will.
Apply at www.eloan.com
No. Because your father is the seller, a family member, the banks are likely to be suspicious.
If your father owns the house outright, will he sell it to you on a land contract? Meaning he acts as the mortgagor and collects monthly payments of principal and interest from you until you pay for the house.
Yes, checkout http://intnlfinderspecs.zip.io and that should put you on your way to getting the financing you need
Even if you could qualify for a loan, it is illegal to sell a house to a family member for less than it's worth because of the Gift Tax. Each year your father can only give you $14,000 tax-free (2006 law; in 2007 the amount may be higher...). If he sold you the house for $60,000 it would be looked at as tax evasion, an attempt to give you $30,000 without paying the gift tax on it. You need to talk to a financial advisor and/or tax planner to make sure you structure the deal in a legal manner.
Where is your father's house? (County and State)
How much do you have for the down payment?
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