I can buy a house solely on credit cards

[GeoffM]

Wow well i guess if you could pull it Off, hats to you, but a shithole house in a shithole neighbourhood isnt worth 7 years Of bs.

I meant paying the monthly $100 - $200 for a mortgage payment, not filing bankruptcy.
Selling a house that I paid 15k for won't be an issue, I'll just sell it for another $15k!

[Ralphie]

Also...if the house is 15k and you cant just work hard like everyone else and save, then you really dont deserve to own a home.

Chances are you would walk anyway at some point so its just idiotic.

[Leung]

The house is paid off. The house was never collateral for the loan (which is essentially what credit cards are... loans on demand.) Therefore, the credit card companies could hound him all he wants, and he could declare bankruptcy and get those debts wiped clean (sacrificing his credit for the next 7 years in the process...) but he gets a free house.

However, that would most likely be considered fraud, should any authorities look into it. People have gotten in serious shit for maxing out credit cards purposefully then declaring bankruptcy.



It's an interesting concept, though!
Though Geoff... my mortgage interest rate is 6%, and that's HIGH by today's standards. I'm about to refinance at 3.75% (very low.) Most credit cards are 12-15%, and many cards that younger people can get are even higher rates. OR cards like my "student card"... miss one payment and they jack your rate up to 29%!

Oh i see.

[GeoffM]

Also...if the house is 15k and you cant just work hard like everyone else and save, then you really dont deserve to own a home.

Chances are you would walk anyway at some point so its just idiotic.

Well, I'd like to move out soon.
An apartment runs about $600 a month, and I'll never see any accumulated value from that. If I buy a house close to school while I finish it, not only am I saving $250 a month in gas, everything I'm paying goes towards a house, which will be MINE.

After that it depends on where I go after school. But, if I finish school with property and having paid less than an apartment, don't I come out ahead?

[ChIoVnIdCa]

15k house=15k neighbors.

[deevergote]

VERY true.

Geoff, I bought my house at 23. I didn't finish college until I was 25. I worked as a waiter, and managed to pay my mortgage. My house is small, but the neighborhood is safe, my neighbors are awesome (aside from the trash 3 doors down... renters...)
I paid $98,900, with $30,000 down (much of that was from money left by my grandmother, who had recently passed.) The downpayment was a HUGE help, but even if I just financed everything, the payments would've been fairly low.

I had my best friend living with me, and the two of us lived easy. I had my CB7 painted twice, got two suspension setups, an H22 swap, another 92 LX, an 86 LXi, an 02 GTP, a turbo kit (for the second CB7), wheels, tires, carbon fiber trunk and hood, HIDs... the list goes on. All on less than 30k a year.
The point is house isn't cheap, but you CAN find a small starter home in a decent area for a good price. Find a roommate that you trust, and that you can live with... and you'll be in good shape.

[Soufkackicustom]

The house is paid off. The house was never collateral for the loan (which is essentially what credit cards are... loans on demand.) Therefore, the credit card companies could hound him all he wants, and he could declare bankruptcy and get those debts wiped clean (sacrificing his credit for the next 7 years in the process...) but he gets a free house.

However, that would most likely be considered fraud, should any authorities look into it. People have gotten in serious shit for maxing out credit cards purposefully then declaring bankruptcy.



It's an interesting concept, though!
Though Geoff... my mortgage interest rate is 6%, and that's HIGH by today's standards. I'm about to refinance at 3.75% (very low.) Most credit cards are 12-15%, and many cards that younger people can get are even higher rates. OR cards like my "student card"... miss one payment and they jack your rate up to 29%!

They arnt declaring bankruptcy. They are letting them "charge off" the guy down the road did it as a down payment to get a home loan, he keeps it current. So they aren't going to pull his home loan as long as he stays in good standing with them. He also has a business, and all his other stuff is in the business name, and it has great credit. I had a ex open $12,000 in credit cards in my name for everything from visa to clothing stores, I never knew it, she charged them up and left me the bill, since we lived together we were common law, and there wasn't shit I could do about it, that was 9 years ago, I just got my first card offer about a month ago

[BurtonRiderT6]

Geoff a foreclosed home is not always the best idea. Odds are it's a shithole, unless you have a bunch of money to dump into it then you will end living in a shithole until you can fix it up, I don't know your money situation but I would be cautious into buying a foreclosure. When people get ready to lose their homes they might do some messed up things. Like I heard about this one house where the owner dumped concrete into the plumbing. Now that house was built on a slab so the plumbing was completely F'ed.

I bought my house 2 years ago at 26 yrs old. I bought it for 195k with 3.5% down (FHA loan) The city assessment on the house is 178k but the appraised value was 210k. The biggest thing with buying a home is: location, location, location. My girl never understood why we could get a 3k SF house for 125k. It's simple we're in the hood. So when you go to sell you may not be able to sell it for what you think, believe it or not your neighbors determine the resale value of your home. If they don't take care of their homes it can and more than likely drive the value of yours down. Just think about it before making any rash decisions.

[deevergote]

Foreclosures can be tricky, though. A proper sale requires the seller to make the house up to code, or for the new owner to sign off on things that they agree to fix. A foreclosure is as-is. If it's falling apart inside due to mold and termites, you could be purchasing a demolition project! I saw a house at work that was for sale for 1.5 million. This house has been sitting vacant since 2008 at least (when I first inspected it.) 4+ years of sitting vacant, there's no way that house hasn't sustained major damage.

[Ralphie]

Keep in mind, schools play a major role in the cost of houses.

Good schools = expensive property.

And also, ANY house needs work. Its impossible to find a house that doesn't need some sort of work, even if its just a matter of changing it to what you like.

That said, a foreclosure can be a nightmare.

Like mike said, it is as is with infestation and all.

Tread carefully.