Question
We are sick of renting apartments. Is there any LEGAL way to rent a house? Meaning,?
We live in NW Indiana. We are a family of 4 that do not qualify for a conventional mortgage. Our credit scores are in the low 500s. We are sick of living and renting apartments. I am on craigslist 4 hours a day looking for a place to rent. Preferably a duplex, townhome, or condo. The problem is, I have read in several blogs and articles that some homeowners are opting to rent their properties, behind the bank's back, to stay out of foreclosure. Some articles that I have read state that this practice, in some cases, is illegal and if the bank finds out, they can "call" the entire amount of the loan and the homeowner will have to pay it back in full. Not to mention, the renters have to move out. Is this true? Is there any LEGAL way to move into a home/duplex etc that someone has a mortgage on and you just "take over the payments" without having a problem with the finance company. Before my fiance and I moved in together, he and his family were renting a home from a landlord who had already lost the house they were living in to the bank (or it was being foreclosed upon) but was still advertising it for rent. The bank had no idea about this. One day, he comes home and there are people throwing their things out on the front lawn. I am afraid that this will happen to us if we don't do our research and move into a property that isn't managed by a property management company such as an apartment complex. The price that we are and allot of people alike are paying for a 2 bedroom apartment, can be paid for a 3 bedroom townhome or duplex. If there is anyone out there who can give is any advice it would be great. I was contacted by someone about a subprime and interest only mortgage but blogs say those are REALLY bad.
1 month ago - 5 answers
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It depends partly on why your credit scores are in the low 500's. When you rent a house, the owner takes a big risk, if you're unknown strangers. For all the owner knows, you might be in the habit of renting houses and doing thousands of dollars worth of damage to them then disappearing. Or any of a lot of other worries the owner would have. The lower your credit scores, the higher the risk, as perceived by the owner, that something will go seriously wrong. So you need to look at your credit reports and see if there is anything there that would cause alarm to the owner. If not, you need to explain the low scores so they won't worry. Lots of legitimate owners want to legitimately rent their houses out in this market. I'm planning to rent mine out on a rent-to-own deal, in Owensboro, KY, after the $8000 credit expires, if nobody buys it by then. Because we want to move somewhere else, but we have to keep paying this mortgage if we don't sell it.
by Dilbert- 1 month ago
Subprimes are what caused the housing crisis to begin with....people getting homes when they cant afford a car payment. Just keep looking, and dont do the illegal stuff while bite ya in the butt in the long run.
by MickeyFriend- 1 month ago
A mortgage with your credit scores is an impossibility now a days so lets throw that idea away for now. Even renting is difficult for someone with such scores, but more often than not you will find that the scenario you read about is rare so I wouldn't give up on the idea of a private rental. In fact the private rental is your best chance of getting the property you most desire because the less experienced ones don't run your credit history. That being said, you can sometimes overcome the low credit scores on a rental by offering a higher security deposit which protects the owner in case you default on the lease. Good Luck!
by linkus86- 1 month ago
No, there is no legal way to assume a loan without bank approval. Few loans are assumable anyway. No one will even think about lending you money with that credit, you are well below acceptable. You may have a hard time renting as well. You can't 100% be sure that a landlord will not foreclose. But, you can make sure they can legally rent their property if you use a rental agency. Your town should have a few real estate offices that manage rental houses for clients.
by Janet P- 1 month ago