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01-10-2009, 09:26 PM #1
Renter
- Join Date
- Jan 2009
- Posts
- 7
sibling giving me land to use for collateral
Hello...I am hoping someone can give me some info as to where I should start this whole process. My husband and I want to buy a piece of land and a double-wide, we got burned on a rent-to-own situation, thought we were protected by the papers we signed but without a lawyer, apparently nothing can be done....anyway, we would like to just go ahead and buy a home and land and move out of this situation, we are outgrowing the place anyway.
My father signed over some land and a home to my brother a while back, and my brother has offered to give me half the land, to use as I need it in order for us to purchase a home. We do not want to live on the land he is giving us at all. We would like to put it up for collateral and take out a loan just enough to get us a small piece of land to put our trailer on, possibly an acre. (He will be signing over about 4 acres to us.)
My husband has a bankruptcy from 2004, but no problems since then, and I have barely any credit at all. It would have to be him, I would think, to do the loan, though, because I am a stay at home mom, he has the income.
So, my questions are, first of all, does this sound feasible for us to do with his 585 credit score, to get a loan on this land to buy a smaller piece of land? And then, could we take the smaller piece of land that we want to live on, and use it, along with a couple thousand cash to put down on a mobile home? I hear that many of the dealers will let you use your land as part of your down payment and then you pay a note on the land and home together. How would we start the process? I am guessing we would first see a lender about the land situation...I'm not sure, I don't want to start on something, and put land up for a loan and then not be able to get a mobile home, but be stuck paying interest on a loan for the land.
Also, before we can do any of this, my brother and husband and I need to get the land in my name (or would it be my husband's, since he is the one with the income, who will probably have to take out the loan?) How would we go about him signing over the land to us? Is it necessary to hire a real estate attorney for any of this?
I hope I have explained the situation clearly, we are all new to this, and just unsure of where to start, and low on funds. Ideally, we would love to be able to just have a 10 or 20% down payment in cash for a new home and land, but with a growing family, this is probably the best we will be able to do for a while, and we really need a bigger place, with our 4th (and last) kid due in a couple of months, in a single-wide.
Thanks in advance for any advice or info.
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01-12-2009, 02:18 PM #2
Fixer Upper
- Join Date
- Feb 2007
- Posts
- 58
Cath,
If you can't afford a lawyer to save your current situation, how do you expect to afford a lawyer to do all the work you will need done with your current plan? And yes, you will need a lawyer or you may end up with even bigger problems than you have now.
Is there a reason why you can't move into a bigger apartment and rent while you get your finances in shape?
As for your plan. If your brother gives you the land you will need to make sure that all the paperwork is done properly and filed with the county. Then you become responsible for the taxes on the land. Will that fit into your budget?
Loans secured by land are hard to come by so find a lender that is willing to do lend to you before you get the land. Bad idea to get the land and then find out you can't use it as collateral.
Do you know what characteristics you need to look for in land so that once you buy it, you can build on it? If you will need a septic system, you need to be very careful that the land you buy can support a septic system.
Do you know exactly how much it will cost to get the land you want to live on prepared for the mobile home? How will that be financed? What permits will you need and how much do they cost?



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