Ensure that you have a very realistic plan to ensure that you will qualify for a mortgage in the next 12-24 months

The plan for credit repair or saving more money for a down payment should be in place before you sign the final contracts.


Discussion: Again, tough love. Let’s be honest with ourselves. There is something preventing you from getting a mortgage today. It may be mistakes on the credit report, it may be an ex-spouse or past relationship, it may be too much debt or too many collections, but it’s something. Something has to change in order for you to get a mortgage. Something even more has to change in order for you to get a very low cost mortgage. If collections are keeping your scores low, there are two ways to address them: Paying them off or having them removed from your credit. If they are legitimate collections, you must pay them off to get them off your credit. Some collection agencies will accept partial payment. If you can negotiate partial payments on your own, it may be to your advantage to accept their offer and pay it off. If your issue is not enough down payment, start saving. It’s possible that you may never be able to pay off the debt you’ve accumulated, in which case a discussion with a bankruptcy attorney may prove helpful. Only a bankruptcy attorney can give you the proper legal advice regarding filing bankruptcy. Finally, these questions are raised to get you to think about your specific situation. Our advice is that you should have a plan of action for fixing your credit scores including remediation of your debt. We are not licensed credit counselors, so we do not offer specific advice. We do recognize the importance or ensuring that the individual entering a rent to own contract should have a plan with realistic goals and objectives.

But in the end, you have a credit situation which has been established over the years. If you wish to own a home in the next two years, you must have a plan and the financial resources to execute that plan in order to succeed with securing a mortgage. Again, it’s not easy. You must make sacrifices and be honest with yourself regarding your personal and financial capacity to mitigate the financial issues which have prevented you from obtaining a mortgage. I can tell you that the rewards are endless and that sacrifice today will most likely pay big dividends through potential equity appreciation in your own property.