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Despite having a bankruptcy you can still own a home – Stop punishing yourself

By Todd Clark - Retired

Real Estate Agent with eXp Realty LLC 200311024

August 27, 2007 05:18 PM

Everyone has had something in their life that they didn't expect to happen, and the same thing may have happened to you, to cause you to have to file for bankruptcy. But, that is no reason to keep beating yourself up and telling yourself you are not good enough to own a home.

You are just as good as everyone else, and you CAN own a home! You just need someone with the experience to help you jump through some hoops to get that home for you. There are many options to getting a home after bankruptcy and some may even be as simple as calling a traditional mortgage broker.

Another way for you to get into a home with a bankruptcy may be with Owner Financing or a lease option. Both options can get you in to a home as soon as next month, and it won't matter what your credit score is. In some cases, there are people that have great credit, large down payments and still prefer to buy homes using owner financing or lease options. It can actually save a home buyer hundreds of dollars per month in interest charges, because a home owner can sometime charge a lot less interest to a buyer than a bank may be offering.

So, for more information on buying a home with a bankruptcy in your past, please feel free to give me a call. I would love the opportunity to show you how home ownership maybe closer than you think.

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Dawn Workman

Veracity Real Estate Group, LLC - Camas, WA

Camas Real Estate Expert, MBA, 480-540-8100

Great post! Have you posted it as an ad on craigslist? I bet you would get some response. :)

Aug 27, 2007 05:24 PM

William Johnson

Retired - La Jolla, CA

Retired

Hi Todd, I love the comment you used in your own blog, " normal realtor". Whatever normal means,lol. I can say that your ad and what you are saying in it can also be a giant leap of faith. Bankruptcies are not always because of death in the family or divorce. Sometimes they are just reflective of very poor money management skills. Suggesting too strongly to a seller to take that increased risk maybe perilous. We have a disclosure we have to use in California that warns any seller not to entertain seller assisted financing without fully considering the consequences of borrower defaulting. Do you have disclosures like that in your state?

Aug 27, 2007 05:44 PM

Duane Hosek

Coldwell Banker - Lewis-Kirkeby-Hall - Rapid City, SD

Hi Todd...........Having gone through bankruptcy 9 years ago, I really appreciate your blog. Good job.

Duane Hosek in the Black Hills of South Dakota

Aug 27, 2007 05:50 PM

"The Lovely Wife" The One And Only TLW.

President-Tutas Towne Realty, Inc. - Kissimmee, FL

Todd...

I think William has make a good point.

As we only work with Seller's I would advise them to do all the homework prior to accepting a lease option/own fi. Whether or not this is a good idea would depend on the reason the Buyer filed bankruptcy to begin with.

If representing a Buyer I would want to make sure they could afford creative financing. I don't know about your area but around here creative financing can get pricey and risky.

Just my fingertip thoughts ... For whatever they are worth to ya :)

TLW...ROAR!

Aug 28, 2007 12:48 AM

J Perrin Cornell

Coldwell Banker Cascade Real Estate - Wenatchee, WA

Broker, ABR, VAMRES

I could/would not advise a seller to accept an owner financing situation unless a) we know the buyers credit (how does everything else look), b) buyer has at least 15% down, c) interest rate is competitive and higher than normal rate. Then only with 5 year call (so if seller needs cash he can sell it without too large of a discount). IN my area I would use a contract as opposed to note and DOT as they can be forreclosed quicker. Finally the seller's situation is also very important... do they understand and can they afford the risk. Sellers are not banks... banks expertiese is in defining and charging for risk (some would argue avoiding).

Yes there may be a very good reason for a bankruptcy. But my job is to be an advocate for a seller or if I am representing a bankrupt client to anticipate what the seller may want and have an answer.

Aug 28, 2007 01:07 AM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

Dawn - No I haven't posted this to Craigslist, but it sounds like something I should try.

William - We don't have that disclosure here. I would love it if you could scan it in and e-mail me a copy!

Duane - Thanks for the words of encouragement.

TLW - In this area, it isn't as bad as other areas of the country. I usually work with investors who either had rental properties or fixed up a property and payed cash for it in the first place. So not as much to risk for them. As for the buyer are prices are still increasing here and in some cases, the buyer can actually get up to 10% by the time the lease option is done. The seller gets more than market rent and has the property taken care of for them by the buyer.

Perrin - You are right about the owner financing and getting 10 to 15% down. The interest rate is usually the same or a .5% better than the banks are offering and also on 5 year contracts. As for the banks knowing better. With what we are seeing in the banking industry are we sure they know better? As I also mention in my comment to TLW, most of my clients are investors who paid for the house with cash and are making a lot of money prior to getting the interest, so not as much to risk.

Aug 28, 2007 03:16 AM

Despite having a bankruptcy you can still own a home – Stop punishing yourself

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