He built a house a year ago. The original price for the home was $240,000. He put $60,000 down. He has no credit history and was making enough money to convince the home builder to aquire a construction loan for the home. The terms were my brother would pay upwards of $15,000 a month until the loan was paid off... Well a couple months into it his business slows. He tells the home builder he can't continue to make those large payments. So he is trying now to sell the house OR to find someone who would get approved for a home loan to aquire it and he would make the payments. The problem is, the housing market in his location is dead. Homes have been for sell for years and years and years that are much cheaper then his. This house practically shares a driveway/yard with a 2nd house he owns so this would make it impossible to sell. He could afford $5,000 a month but anything above that would be pushing it. I've tried to apply for a home loan for him but I don't make enough income. If you were him, what would you do?
Where is this home located? Also, is the home complete? If so why does he not just refinance it into a traditional 15 or 30 year mortgage?
Who owns the house? How long has this been going on? By your numbers, he's 1/3 of the way into his repayment plan. It all depends on the leverage he has and how much equity. It shouldn't be hard to secure a loan if he has paid off significantly more than he owns.
Who lives on both properties? Time to get some tenants and/or roommates. Also maybe get a second job or start a second biz or get creative with his own business and diversify it. Necessity is the mother of invention.
He wouldn't get approved. Banks ran his credit. He credit score is 0 or n/a lol. Hes never owned a credit card. He's almost 40.
He is letting his niece (who is a single mother of 2) live there no charge as long as she keeps up with her car/insurance/utilities.
no nothing like that... he owns two night clubs in NC they were doing really really well before he did the deal for the house. the economy has gotten worse there in the last couple years (despite recent "#s")
You would think that with owning a couple of night clubs he has some sort of business line of credit that a bank would look favorably on.
Agree. Seems to be a crappy situation to get yourself into. I don't see how he has no credit, and what builder would take a flyer on paying for a house for someone like that?
and the easiest way to make his problem your problem is co-signing a loan for him. i think you should thank your lucky stars you don't qualify for one.
He can try to refinance. If he has been making payments for a year now, he should have some credit right?
I don't have any ideas, but it's difficult to believe that he put himself into this situation. It's like he screwed himself when he didn't have to do it. How bizarre.
This sounds to me like a drug dealer who washes his money with his 2 nightclubs. There is no way to get ANY business property without credit or paying straight cash for it. How did he acquire enough cash to buy out this club property having no credit? I don't know for sure, and I'm not judging your brother. Just with reading and knowing only what I know from this thread, that is what it sounds like to me.
Agree that situation sounds strange. At the very least it sounds like a terrible deal that your brother entered into.
lol sounds that way... but to clear things up I should add he has a business partner who has the clubs in his name. He has clubs in his name but he has a horrible credit history. Him and my brother are currently sharing this house.
Sorry, but it sound like you're lying or he's lying to you. Cmon the eff on...so he had a brand new 240,000 house built and convinced a home builder to finance it to be paid off IN A YEAR when he has a HORRIBLE credit history? Seriously, you don't think that sounds ODD at all? I don't care how much unstable money he was making, that sounds shady as all hell and you're being extremely naive if you can't see that. (Although there might be some financing companies ready to take $60k and say eff it, we will just take it back if this guy effs up like we are guessing he will). Honestly it's sad that the brother of some dude in this situation is roaming message boards while trying to use it to solve his off the reservation and probably illegally fueled house problems...don't you? Tell him to quit effing around...save money when he gets it and don't try to buy crap on credit if you're not rock solid sure you aren't going to be able to pay. Clubs are an extremely UNSTABLE business...he's BSing you if he told you otherwise. It sounds like he took a huge gamble and lost...hopefully he learned his lesson (although from what you say about his credit history he probably hasn't). He lives in NC right? Why is he depending on someone in Houston (or just Texas?) to solve his problems? Just an effed up situation all around...
