What would you do in this financial bind?

Keep paying your debts and rebuilding your credit scores. Put as much of that $6000 as you can into a CD. The more you have for a down payment up front, the easier it is to get a loan.

You may be able to find a foreclosure for cheap, if you are willing to go to all the sherriff’s auctions.

@dreamer31 does anyone else contribute financially to your family income or is your husband’s $9,000 income the only income? Also, did he gross $9,000?

Work on rebuilding your credit score and getting your income up before trying for a loan for a house again.

Your best shot is to have 20 percent down payment and a good credit score. Get a free credit report and scour it for mistakes and disputes you may be able to still clear up. Then contact a reputable mortgage broker who can advise you of your options. Keep an eye on the forclosure sales as banks are itching to get these off the books.

The fact is that banks are being incredibly tight with their money right now. Only A+ borrowers are getting credit. You are probably going to have to invest that money, rebuild your credit, and sit tight until that credit score is improved.

He grossed less than 9k despite our FREQUENT job searches. scrap metal and cutting grass helps! We will possibly have more than 20 percent down but a 0 credit score:( no credit cards or anything like that for either one of us but mine is bad his is 0. I have thought about investing but come on…..........Im stuck here in povertyville and dont have a darn clue, just getting through whatever way we can and trying to do it with a smile.:)

@dreamer31 I was going to suggest that you apply with Habitat for Humanity but you need good credit and a steady income.

Thanks but we dont have Habitat for Humanity in our county. Please dont get me wrong, Im not wanting a handout(unless it is a good steady job) or pity, I just dont want such a large sum of $ to dwindle away with nothing to show for it, that would make me sad. These past couple of years we have lived on so little, paying big bills. It would be nice to pay little bills maybe make more:)

@dreamer31 Put the money in a 24–60 month Money Market account or CD that can’t be touched. Then you won’t be tempted to spend it until the time is up. Hopefully by then you will have turned the corner and can buy your house.

If you live in a climate that isn’t too severe, another option is to buy a used RV that you can live in.

@dreamer31 oh, I know. I was trying to think of something to help. Actually, with Habitat you have to pay for the house. It isn’t free. You just don’t have to come up with a down payment. You have to repay the down payment with “sweat equity” by helping build another Habitat House.

I’m not a big fan of the “rent-to-own” offers you see advertised. But that may be an option. Look in your local trading journals and newspaper real estate ads and see if there are any for lease or rent that are offering rent with an option to buy.

Otherwise, start working on getting your credit score up. I know, if you are like me, it’ll be hard to hold on to the money while you work on that. So do what @WestRiverrat suggested. I think it’s an excellent idea for the money (not the RV idea, but the CD) in the meantime.

thank you @bkcunningham :) The rent to own is the big reason why my credit is bad, you are wise to not be a big fan. Never trust the people who do those. Oh and I have 3 kids no thanks @WestRiverrat on the RV, I would go bonkers! But I am thinking about the CD but the rates are not so great right now.

@dreamer31 yeah, my stepdaughter was going to do a rent-with-option deal and when I did some research, a few red flags went up for me. Anyway, I am sorry you are in such a bind. It takes time to get out of financial trouble and you need to be very careful and takes things slowly. I know it feels like it takes forever and will never end. But it will get better.

Try talking to a HUD Housing Counselor and see what they can do to help. Here’s a number (800) 569–4287 and here’s the website to find something near you:

http://portal.hud.gov/hudportal/HUD?src=/i_want_to/talk_to_a_housing_counselor

Have you thought of looking for some homes in your price range that are For Sale by Owner and talking to the owners about helping you with the financing. You never know, sometimes good things happen and if you ask and look long enough and are honest about your problems, you might find someone willing to take your down payment, write up a contract and help with the loan.

Hey, keep your chin up. I’m impressed you guys have done so well with so little. That says a whole lot about you and your husband. Here’s hoping good things come your way in 2011.

@bkcunningham Thank you very much! I’m praying 2010 was the worst. I will try that link.

Consider a pre-fab or mobile home. They are the best deals around in my area.

What you might want to do is look for rent with an option to buy situation. Because both the real estate market is so tight, and interest rates are low, you might be able to find a situation where an owner wants to keep the house occupied, and will entertain the idea of holding the mortgage. Look for “owner financing” or “rent with option to buy.”

If homes in your area are going for only 40,000 (I’m in California where that’s unheard of) then you may want to visit the real estate auctions and get to know the investors who are there all the time. One of them might be willing to take your $6,000 as a down payment and finance the rest. If you default he gets the house back and gets to keep your $6,000.. It’s a great deal for him if he can afford to float yhe money, and a great deal for you too.
Just remember, if you’re already living week to week, what will you do when the heater breaks down or the roof leaks?

@Judi makes a great point. You already live week to week, what will you do if you need to make a major repair? My husband and I live paycheck to paycheck at the moment. We had to walk away from our house because we couldn’t afford the repairs and escalating property taxes. You would be much better off holding on to that money until your financial situation has improved. This is coming from someone that has been in your situation. I feel for you.

@BarnacleBill “rent with option to buy” is crooked and why my credit is bad. @Judi I live near Atlanta Ga and there are foreclosures in good condition as low as 25k so if I could pay all my bills for the month for the amount I just pay for rent now, the repairs would be no problem. I dont have credit cards or any other payments besides utilities. This is why I am in a bind, I want to stop living week to week, be comfortable and be able to put my kids in the activities they want to participate in….....just be able to breathe.

@dreamer31 rent to own is not always a scam. Here and here is some information on how it works and the pros and cons.

The way the courthouse steps auction would work, is an investor would pay maybe 30k cash for a house worth 40, or 45k. He would buy the house, then sell it to you, for 45k, with $6000 down and finance the rest. He would probably amortize it over 30 years, but want a balloon payment to pay it off in 5–10 years when you should be able to refinance with a more conventional loan.