finally found a house!

Discussion in 'Credit Talk' started by Shelby, Apr 24, 2001.

  1. Shelby

    Shelby Well-Known Member

    We finally found a house! And the seller is willing to fiance the whole thing with a small down payment! We really like it and think it is a good deal. We submitted an offer tonight. But our question is will this be reported on our credit? The real estate agent says the seller will report it to the credit bureaus but I am wondering how he can do this as an individual and not a bank? I hope there is a way....we really need this to be reported to help us rebuild and to help us to refinance in a couple of years at a better interest rate.
  2. Tim

    Tim Guest


    Kind of weird how an individual can report to the credit bureaus. Why would they take the time to do that? As a favor?

    Sound kind of fishy, I would look into it if you really care.

    If you want a referral of some mortgage brokers, I know a few people that can help you. Even with the worse credit.

    How much interest are they charging you?
  3. Shelby

    Shelby Well-Known Member

    We have talked to severla sub-prime approved for 85% loan with 15%seller carryback. They said 11.5% was the best we could get with our credit. This seller is willing to finance 100% at 9.5% with a balloon payment due in 4 years....which we will want to refi before then to get a better rate. They will report to the credit bureaus so that it will help us to qualify for refinancing so we can cash them out. But even though it is in their best interest to do this....I wonder if they actually can. I think that they maybe just think they can...but I wonder how we could find out for sure. I'm sure investors who have rental property report to the credit bureaus so their must be a way. Anyone know?
  4. Scott

    Scott Guest


    The odds are that they can't and won't be able to report to the bureaus. You can't trust anyhting that a realtor says especially if it is not "handwritten into the purchase agreement" as an addendum.

    But, it sounds like a good loan. You can keep your own proof of monthly payments by securing the canceled checks from your bank or an online electronic equivalent as a VOM, verfication of mortgage history.

    Mortgage lenders require and accept these routinely for private mortgage payment history.

    It is probably more of an advantage to your credit report at this time that it is NOT going to be reported.

    SUGGESTION: Have the realtor and the seller rewrite the purchase agreement to include an a special addendum for this item specifically. If/When the seller does not perform you can use this at payoff time to negotiate lower payoff, extension of balloon payment date, etc..etc.. or
    some other sort of compensatory damage.

  5. worried

    worried Guest

    Tim, where are these financing options?
  6. Tim

    Tim Guest


    Let me know if you want the names of the people I know. They have been in the industry for a very long time.

    If you do have bad credit, you might pay a little bit of a brokers fee for them to find a good lender for you.

    Have you tried I heard they were ok a while back, but I have never used them.
  7. Concerned

    Concerned Well-Known Member

    You have to be approved by the CRA's before they will let you report (I am not talking about pulling here). Volume matters for approval. I can't imagine some guy off the street being allowed to report one puny trade line. Think of all the collection accounts that are only on one report. If it were that easy for them to report you to all three, don't you think they would?

    Forget everything your agent said. They are barely a step above a used car salesman. They want to make the sale and will tell you whatever they think you want to hear to close the deal.
  8. CYA

    CYA Well-Known Member

    Maybe if your payments were regulated through a 3rd party, they might get reported as well, but how often would they report 1x only, every payment, or only when you are late??? I would not count on this type of reporting, even if the owner is a member of a CRA, unless it is writing, in the contract.

Share This Page