If you examine the current state of the economy and listen to those many experts on television, you will see that our entire economy seems to revolve around the housing market. Experts tell us that the great recession was primarily caused by a massive downturn in the housing market, and that we now appear to have entered an almost “Catch-22” type of situation.
Huge numbers of people have been adversely effected by the terrible recession, with savings decimated and/or credit scores rapidly heading south. Many banks have been left with egg on their corporate faces and are now very reluctant to do business with anyone, seemingly almost afraid of their own shadows. This is a Catch-22, because bankers will not budge without huge deposits on the other end, or first-class credit scores and the would-be homeowner cannot start to put the cycle into motion without qualifying and attracting sufficient funds in the beginning.
It would seem to many that conventional mortgage lenders have now placed the bar at far too high a position, maybe in some cases as a knee-jerk reaction to the recession itself. How can it be possible for a consumer to succeed when buying a home with poor credit in these circumstances and situations? Not so many people have credit scores topping 700 now and lenders are noticing this as well by not entering into very many contracts. Even though property values have dramatically declined, your credit score may still disqualify you from taking any action.
These days, buying a house with poor credit may well be possible if you enter into a direct agreement with the seller. Is it possible to enter into such a straightforward agreement, as we have all been told that complex procedures must be endured, when purchasing homes through these storied institutions. To find out for yourself, seek out a seller who is offering a land contract, especially if you’re looking to buy in southeast Michigan or in the Metro Detroit area.
A land contract usually takes about half as much time as a conventional mortgage might take to set up, and it can be perfect for first time home buyers with bad credit. The seller will pay those horrible “closing costs” and you might only need to agree the amount that you can pay each month, the total amount and the contract period. Make sure that you use the services of a professional to ensure that the contract is legally binding and fair for both parties and voila! – buying a house with poor credit is no longer completely out of your reach.
Michigan has been one of the most hard-hit states during the recession, circumstances complicated by the additional challenges facing the automobile industry. So long as you don’t leave any stone unturned and any loose ends, your land contract can help you to own your own home in this beautiful state. Won’t it be great to be able to turn your back on those conventional mortgage lenders, many of which who may have caused you no end of frustration by not being willing to meet you half way?
