I need advice.

I have been admittedly irresponsible during adulthood. My FICO score is "Poor" or below 500. I have about 5K in outstanding debt. I wait tables so I don't have "consistent, verifiable income" according to lenders.

I inherited a house worth about 60K. The executor of the will wouldn't respond to me and I had to get a lawyer on a contingency basis. I'd really like to do something with it so that I can make a little money to pay my lawyer and better my situation. It is completely paid off, 100% free and clear of mortgages and leins. Selling the house to someone like homebuyers is obviously a bad idea, as they will offer me hardly anything for it. I also tried to get a Home Equity loan but they won't even consider me since my credit score is so bad.

What should I do?

reply to post by graphuto


Dont drink the water. Best advice I can muster.

oh, and you're welcome.

reply to post by Lighterside


So confused!

Why don't you live in the house rent free?
Or sell it to the highest bidder and take the money
And run.( What's left of it after taxes.

live it it free, use extra money to fix it up here and there, increase the value and sell it in a few years

I can't just move up there. I am paying bills currently here, I would have to find a job, and with no cash to float me?

Originally posted by graphuto
I can't just move up there. I am paying bills currently here, I would have to find a job, and with no cash to float me?

do you have a job there?

any chance of transfer?

reply to post by graphuto


Maybe you can rent out some room(s) and use the money somehow. 60K don't buy much in Australia as far as a home goes. Good Luck!

I'm guessing your rent would be at least $500/month. So why not live in your house rent free for 10 months and pay offf your debt. Home ownership is the key to financial stability. If you stick to a plan where you bank all the money you would have spent on rent for a few years you can start a small business or get into some kind of investing. Who would you rather be in 10 years the guy still waiting tables or the guy who owns the restaurant?

I don't know anything about inheritance laws but I'm sure they differ by state. I doubt very seriously you need a lawyer to take ownership of a house that was willed to you. It certainly sounds like you've gotten your first taste of the real world. Just remember that 99% of the people you meet in this world are out to make a profit off you. Good luck.

Like everyone says, move into the house. At the very least rent it out. Do not sell it, there are no quick fixes.

reply to post by graphuto


Well you could become a landlord, and rent it out to some decent folks.

Just do a credit/background check first, if all is good, you will receive payment for security deposit,
first, and last months rent.

Just remember to save some of it every month so that you can pay your local property taxes.
Creating a second savings account or CD's are good for this kind of thing.

Remember also, that your tenants will deserve their deposit back at the end of the lease.
As long as they don't trash the place. Regards

Sell the house, it was free and anything will be a profit. Use the money to get out of debt. Then stay out of debt. Use the left over money to either gain some training so that you can have a more steady income, or start up your own buisness. Even if the house is paid off you will be paying taxes on it, so unless you can afford to pay those you need to sell before they are due, or the government will be unheriting the house.

reply to post by ChaosMagician


Nah there are no locations of the chain I work for where the house is.

burn it down and collect the insurance
2nd

reply to post by darbur


Horrible idea...

www.abovetopsecret.com...
You already asked this question earlier this month.

Originally posted by dreamingawake
www.abovetopsecret.com...
You already asked this question earlier this month.

same question once again.

Lease the property out, if you think you would be a good property manager. Deposit rental money into a business banking account. Create business credit (with an EIN number). Pay expenses from account. Borrow one-hundred dollars from the bank and use the house as collateral (find a local independent bank), pay off the 100 immediately. Do the same with 200 and up, until you have created a credit history in your LLC's name. This will allow you to use the asset, build up equity, build new credit, and create cashflow until the economy stabilizes a little. Another idea is to do an owner-carry where you finance them. This allows you to ask a higher price, and amortize a monthly payment with decent interest. Have a good attorney write the contract. Have them put down a decent down payment to protect you. The benefit is that they will be like owners, treat the property better, and most likely refinance in a couple of years cashing you out if they have some skin in the deal. Let me know if you have any questions. Lots of good info out there on how to do this. I have done it many times very successfully. I have also financed the down payment part if the house wasn't too nice. Just be sure and screen your tenants/buyers. Good people go through rough times, and bad people good times.

Thanks everyone.

reply to post by graphuto


You are quite welcome. This is a terrible market for selling , that is why I mentioned renting it out for the time being.

Hope it all works out for you.