No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Okay, friend needs some help. His dad died, left 150 acres with a loan and a balloon note. Bank originally told him he could make the payments, then refinance when the note comes due but just changed their minds and want him to refinance asap or they will foreclose. He has about 50% equity given current prices, but his credit is trash. Current score about 600, 2? Chargeoffs possibly with Jefferson Capital. No credit cards, but doed have a small loan with a local bank.
So far my ideas to help him are
1. Pay collections and get a pfd.
2. Add him as an authorized user on 2 credit cards.
3. See if he can do an fha loan?
Any other ideas? Hate to see him lose the place, it's got 2 stocked ponds and great deer hunting! Got maybe 2 months to hook him up.
Thanks
PFD's & adding AU accounts are probably the quickest way to improve the score.
Is there a home on this property? If no home, then he'd have to get a land loan which are scarce but are still available. The bank who has the loan on it might even be willing to refinance it out of his dad's name and into his. Since there is a significant amount of equity you might be able to find private money lenders interested in loaning interim funds to bide time to qualify for a traditional mortgage.
If there is a home that would open the door to residential financing, like with an FHA loan. There is even an FHA construction loan option which can use the equity in the property to construct a home on the land if there isn't one already. FHA loans are for primary residences only though.
Not to pile too much on top of the situation, but owning that much land offers an opportunity to subdivide it into a parcel with the home that would server as collateral for the mortgage + some acreage and then a separate parcel with the majority of the 150 acres that would be unencumbered. Might not have enough remaining time to accomplish that, but worth looking into.
Thank you for the ideas. It is his and his families primary residence. But they are in a falling down trailer, he didn't want to build if he was going to lose it. I will let him know your ideas! Again thanks since what I know about this fits on the head of pin!
What State is the land in?
Central TN is where he is at.
Would he consider a buy out that leaves him a couple acres to keep the home and sell the rest?