Even after all the explanations, I still don't feel like anything really adds up here. Why would a home builder agree to take such a big risk on someone with such a bad credit history??
Personally I don't buy into this story, but if for some remote chance it might be true: http://en.wikipedia.org/wiki/Peer-to-peer_lending
Rocky Mount (eastern NC).... here are pictures of the home in question. Well there were other things thrown into the contract. At the time I was making decent money and signed the contract stating that if for any reason my brother could not repay the loan that I would APPLY for a home loan in my name for the balance. I'm not too worried because I'm unemployed now so to meet my obligation all I have to do is apply. This just goes to show how having credit cards isn't a BAD thing.. being mature and living within your means is what it's about.
You realize that the facts get weirder and weirder as this goes on. That is a bizarre thing to go into a real estate contract. Unless the house is at least partly titled in your name, I cannot think of a reason a bank would give you a home loan on it. If you don't own it, you cannot give the bank the authority to foreclose.
That *might* be a 240k house in Western NC. Considering he already owned the property, I would say he got shafted if he paid that much.
Yeah I know it is a very strange situation. Even heard this from the homebuilder themselves. Thing is, I think once the original loan got approved and the homebuilding process started, either the homebuilder or the bank providing the construction loan knew they wouldn't be able to sell the home to even break even if my brother could not repay. I'm assuming they felt like with 2 businesses, a couple homes (cheaper homes they paid cash for... like a $30k home and a $25k home) that once the construction loan (12 months) was coming to an end, they would be able to get approved for a home loan. But the truth of the matter is they have no-bad credit and they bit off more then they could chew. Feel bad for them because ever since they moved in to the house they've been stressing about the finances and knowing they could never sell this house. What makes it worse is my inlaws just moved from Houston to Rocky Mount, NC and it was an akward situation with my brother hoping they would buy his house lol. The home my inlaws bought was for the SAME PURCHASE price as my brothers.
No one is getting mad about it. It is just that the story keeps changing and getting odder and odder.
haha I didn't see that post until just now. the facts "seem" to change because I wasn't there from day 1. I'm just telling you what I've been told. I can assure you nothing illegal is happening. He has until Feb of 2014 to have the loan that has been worked with the home builder figured out or he loses the house. I'm sure by then he will have 50% or more of the house paid off and will be able to use that 50% for a home equity for the other 50%.
Why not just lose the house if he can't afford it? It's not like he has good credit that he has to worry about taking a hit. If he's managed to make it this long in life without credit, he might as well keep it going.
Home of Phil Ford! Kind of looking around for another house but not a relocation-- that's a couple of hours away...
You know they can't prosecute a husband and wife for the same crime! (* the TV quote, above, should not be construed as legal advice, nor does this post create an attorney-client relationship between the poster and any reader)
