Profile picture for justsaynotocactus

My fiance foreclosed on last home, will this affect my options to buy as a new homebuyer??

I have perfect credit. PERFECT. Problem is- my fiance foreclosed on his subprime mortgage with his first wife (now divorced). The foreclosure finally went through end of 2009. With both my mother and sister in the real estate business they have been telling me now is the time to buy for new homebuyers. I'm a recent college grad, no college debt and work in biomedical research. I want to buy a house in Roanoke, VA where we will be relocating to beginning of 2011. I make ~$35,000 /year and he makes ~ $115,000. Am I screwed out of the market because of my fiance's foreclosure in Phoenix??? Is a "lease option" really an option for us, or will we be laughed at?
  • November 04 2010 - Roanoke
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Answers (10)

Are you relocating with your job?  Issues for your fiance's credit have already been addressed very accurately, but I am wondering where you live and work now.  Based upon your income of 35K, I think it would be very difficult to qualify for the price range you are looking for.  Could your Mother or sister be a non-occupant co-buyer?  I agree, talk with a mortgage consultant and remove the mystery of what you can and cannot do.
  • November 05 2010
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hi justsaynotocactus -  very good information below,  but you have a lot of moving parts to your situation....your very best bet would be to contact an experienced loan officer to see if you can qualify without having your finance involved in the financing,  i suspect that you will qualify in the price range you indicated,  but other factors involved.....thanks andy holloman.,   [Link deleted by moderator]

  • November 05 2010
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Regarding "Lease with Option", usually they amount to nothing. You don't know what the market will be and what they will want for their home. This market can change anytime and will the owner want to take less than they owe? Not usually. I consider lease with option just an easy way to say "rent". Then again, after living in the home for a while you may decide you don't want that home anyway. I suggest again to buy what you alone will qualify for, even though it may not be your "dream home", then your monthly payment will go into your own investment and hopefully the values will be going up again and you may even make a profit from it.
  • November 05 2010
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Justsayno,

I would be very careful with lease-with-option-to-purchase as many are severly over-priced...

Of cource, with your Mother and Sister in real estate you are in good hands :-)
  • November 04 2010
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You need to see what you would qualify for on your own and go for that. At least you would have invested in your own home and then later you could both buy up when he is beyond the date needed for him to qualify. I'm in Michigan and can't help you with that part, but there are many good Realtors or Mortgage reps who can help you. Some companies give online applications but it would be better to have a good realtor (your mom or sister) recommend someone to you.
  • November 04 2010
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I am a local Roanoke Va. Realtor and I agree with the statements made regarding buying before you get married. I have several local lenders I can refer you too who wouyld be able to give you a more definitive answer on your exact situation. Please feel free to contact me for any assistance you may require.
  • November 04 2010
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If husband or wife has a forclosure previously, they cannot buy a home within a certain amout of time. If you are engaged, the single person that wants to buy, event though the fiance has had a foreclosure or repo home, can buy, but not if they marry before it is purchased.
Buy it before the wedding!
  • November 04 2010
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Wetdawgs makes very illuminating comments and I lean toward agreeing with him.
However, in the price range you mention, your payment should be well under typical rent, and your tax advantages should make it an even better move for you. The rates are just crazy low, and certainly, almost all economists agree that sooner or later, demand will pick up and prices should stabalize, and eventually, increase. When your fiance's credit improves, and you wish to move up, you can even rent this property.
From your limited info, I lean toward suggesting you buy!
Best wishes, Jim, HSOA.
  • November 04 2010
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Profile picture for wetdawgs
If you wish to include your fiance's income in qualification for a property, yes, his foreclosure will be a problem.

Many disagree with the "now is a good time" NAR propoganda.   The economists I trust predict further house price declines. 

Lease option to buy properties are only a tiny portion of the houses for sale.  Only a tiny percentage actually move on to be a true purchase.  Some things to be aware of with "rent to own" : many require a substantial nonrefundable deposit (often the deposit is 5% or more).   The amount that goes towards purchase is only the amount above and beyond fair market rent prices.   Your contract is for a purchase price decided on the day you sign the contract, so if housing prices decline you don't get the benefit.      As this option is available probably on less than 1% of the houses, the selection of properties is much lower than regular purchases. 

Should you actually go "rent to own", make sure you have home inspections before moving in and putting down the deposit.
  • November 04 2010
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Profile picture for justsaynotocactus
I forgot to add- the houses I have been looking at are around $120-150,000. I am shooting for about $20,000 for a downpayment.
  • November 04 2010
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