Mortgages Key » MortgagesKey » How Much Mortgage » Financial and mortgage advice desperately needed?

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  #1 (permalink)
Jen
: Hi,
I am 43 years old, married, and have 3 children. We are currently renting a home, but have to move in the next 30 days. We would love to buy again as we lost our home 5 years ago. I have been calling mortgage brokers for advice and I feel sick to my stomach and at the end of my rope. We have had some past financial issues, foreclosure and tax liens on credit report, and per conversations with mortgage companies we cant buy, may be years before we can. We are in a payment plan with IRS, but it is still on credit and many years to pay. We make decent money, but with life, we don't really have much savings. I am very scared. How do i get a home? How do I pay off tax liens, how do i improve credit, and outside of that, I don't know how to finance college or weddings. We are good people who have had bad situations our of our control. They are too long to explain here and I don't want anyone to think i am looking for pity, I am looking for advice. How to fix these things, how to buy a home or find a private mortgage, anything to get on track. All suggestions are greatly appreciated.

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  #2 (permalink)
: First, and most important, do not worry about college and weddings at this time. The position you are in will JUST NO ALLOW you to help with those costs...unless you want to make your situation worse. Hopefully your kids have good credit and they will just have to get loans for those events and hopefully one day you can help them pay those payments on those loans.
A "private mortgage" sounds risky. I would consider a modest rental where you can live for a year or two and get your financial affairs in order. Work on your budget and work on your credit score, get debt paid off and be optimistic...HOPE THINGS WORK OUT>
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more..
  #3 (permalink)
: The reality of the situation is negative reporting typically stays on your credit report until a) it is paid off; b) seven and a half years after it is first reported.

The only solution is to remain a renter until you have a good down payment saved. You will most likely not be a homeowner for some time, especially with liens and IRS troubles. Those are the nail in the coffin. You will need to work on restructuring your life. Cut off all extras and put that money toward debt and savings. Use tax returns to pay off debt/create savings. Create a strict budget for everything. Meal plan. Sell everything you don't need. Cut cable, Internet, cell phones, data plans.

Where there is a will, there is a way.
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  #4 (permalink)
: Like the other dude stated-don't worry about private mortgage, college and weddings. For now you need to concentrate on paying off your debts and digging out of your hole. You'll never get into home ownership again until you do that. Gotta crawl before you can walk sort of thing...

Most towns have free credit counseling sources. The internet has tons of advice sites for financial wellness (watch out though, there are TONS of places that charge you offering lots and accomplishing near-nothing so NEVER PAY-this is all stuff you can do on your own!!!!). Clark Howard, Bob Brinker, Motley Fool, Dave Ramsey, etc. all have great sites with tons of advice and links. Make building your credit/paying off debt/saving for a home your family's collective second job. Get your financial world in order so that when you do buy a home, it will be part of the plan and won't put you in debt again. Best of luck!
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  #5 (permalink)
: Either rent or seek a home owner who is willing to finance the purchase for you.
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  #6 (permalink)
: There is nothing wrong with renting. For people in your current situation, it's the best option. It provides flexibility. A "home or private mortgage" is not going to get you back on track. It's going to make the situation worse.

It's hard to offer advice without knowing more of the situation:
- do both adults in the household work? That's a MUST. Ideally, one has a fulltime and parttime job and the other has a fulltime job. Or they figure out how they can make more money as a family (working from home with the kids).
- get rid of all the bills that are not essential = housing, food, basic clothing & health insurance are essential. Car payments, smartphones, premium TV channels, gym memberships, etc aren't.
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  #7 (permalink)
: Oddly the past foreclosure is not the hurdle that is keeping you from buying. Instead it is those tax liens. Uncle Sam always gets his cut, and until that issue is resolved nothing is going to change for you. The easiest way to qualify for a loan is via FHA which requires you to have no derogatory debt exceeding $100 per debtor, and not more than $1000 collectively, no debt to Uncle Sam, and 12 consecutive months of paying all your other bills on time with no late payments. Thus you need to focus on figuring out a way to pay off your IRS debt quicker while simultaneously repaying the others you have owed in the past, simultaneously paying the people you owe presently, and then making sure none of those payment are paid late. Obviously your day to day budget will need to be adjusted.
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  #8 (permalink)
: You simply won't be buying. Even if a private lender were to over look the simple fact that you don't pay your bills they will NOT over look tax liens. Tax liens mean your house will be liened if you buy one. There is no way around it.

You ripped off your fellow Americas when you felt entitled to not pay taxes, that pretty much exempts you from any of the assistance programs.

My advice is to STOP financing anything at all. Those kids can pay for their own education and their own weddings.

Pay off all of the people you screwed over, including the tax payers. Then, when you have zero debt start over and do things decently, without greed.
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  #9 (permalink)
: You have to buckle down and make paying bills a priority. Get rid of unnecessary expenses. Cellphones, cable, etc. Get a second job.
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