Buying an investment property
Q: I own a home w/ a $83k loan, approx. $35K equity. I want to buy an investment property for $130k that my girlfriend will rent from me. With ounly $4000 as a down payment, can I do this?
A: With that small amount as a down payment, I doubt you can finance it, especially as an investor. There are some alternatives. Contact your lender & see what programs they have available for you to achieve this goal. I am sure there is a way.
Bad credit
Q: We are wanting to buy a house but my husband and I dont have very good credit. Are we out of luck? What are our options?
A: Your 1st step would be to contact a lender (or 2) & get pre approved for a mortgage. FHA has some very attractive options from which to choose. If you & your credit rating are not able, at this time, get financed, ask if a ‘co-signer’ would help (say a relative). After that, if still no luck, get into a credit repair program & get involved with a plan to get back on track with a goal in site of when you can get financed & purchase. You will be glad you did. Until then, you would probably have to rent or rent with an option.
Bank owned home for sale
Q: If a bank owned property is advertised for sale @ $67.500 and there is an offer for that amount by a potential buyer, is the bank legally bound to sell it?
A: Not unless you have an accepted agreement ( with all the owners signatures) in your hand. Usually ( especially in today’s market), it the ‘highest & best’ offer that gets accepted. Sometimes, over the asking price! More & more banks are getting into a low initial price being offered for sale to create an ‘auction type’ environment ( I recently had 17 offers on such a property) that strategy gets the best & quickest price possible. The listing, in a MLS system Realtors use to advertise / promote properties, is only that - an advertisement to sell at certain ‘price & terms’. A listing agreement is only an agreement ot pay a commission if those ‘price & terms’ are met EXACTELY!.
One variance, would make it NOT ‘price & terms’. So, to answer your question, NO, they are not obligated to take your offer or be legally bound to sell to you - unless you met all the criteria above.
