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Everything posted by SEOGirl

  1. Yes, our lease does give us $250 per month of our rent that is being allocated for our downpayment. I definitely understand and am aware that if you choose to list allowable business deductions when filing your taxes that is factored in your gross income. Our taxes were based off the sq footage of our home and the home office which gave them a formula for allocating a percentage of our monthly rent, utilities & house repairs that reduced our taxable income. I had suspected that since those were expenses related to home ownership they wouldn't be removed from my income that determines how much mortgage we could qualify for. I am assuming that when you said "Your income will be $20K plus the expense for home office." that I am correct in this assumption that the home office expenses would be added back into my income for the purpose of a mortgage. Thanks for your response. That makes me feel more promising that we could qualify without waiting to file another year of taxes. I am sure I will have more questions as we get further into this process. Thanks!
  2. Hello, My husband and I have been patiently waiting to buy a home for years. We had a lot of obsticles that kept us from being where we needed to be that we have now overcome. We have been in a lease purchase for the past couple of years for a home that we will be purchasing for $250K and we have accured about 10K for the downpayment though we may be able to come up with a few grand more if needed to close. Here are our current issues: I am self employed & my spouse is on SS Disability. His income is non-taxable. Majority of my income is through a contractor position that I have held with the same employer for over 6 years now. After our accountant completed our income taxes this past year, I was concerned it might not appear that we make enough income to qualify. I currently bring in 60K per year for this contract posiiton plus another 5-10K in additional contract work. I have roughly 5-7K in expenses however, the way my home office is setup it is a large portion of our home and after they completed the home office exemption and household related expenses, my taxable income appeared to only be about 20K. Since the majority of the reasons my income looks so low is due to our home expenses which would be similar if we were to purchase the house, how would they look at my income for qualifying for a mortgage? Would they look at it before the home office exemption was used or after? Also, I have heard that SSD income is sometimes counted as more due to being non-taxable. Is that true? My spouses income from SSD is roughly $30K. I also wondered if being self-employed ended up causing too much problems if my employer ended up hiring me a a fulltime employee instead of a contractor if that would change the situation. We had discussed doing that as well anyways. I appreciate all of your input. I have been dreaming of being a homeowner for so long and we finally found our dream home that couldn't be more perfect for our children.
  3. I did some research. We are listed to the deed. The deed was last recorded on Oct 23, 2009 when we closed. It has the original owners as the primary names on the deed with us listed under "Contract to:". Date of last sale is also our closing date and purchase amount so this is a true recorded sale.
  4. We live in Iowa. Both sides each had a real estate agent and the closing was handled by a real estate attorney (who happens to work with the same firm that is representing the bank in the foreclosure). Basically in a contract purchase, you write up a contract with the agreed upon terms of our "mortgage" with the owners of the home. We had a 7.0% interest rate with a 15 year amortization and a 5 year balloon. The original owners are still responsible for paying the real estate taxes (however they are wrapped into our mortgage). These types of transactions are fairly common in our state, however, new to us. We never signed any type of agreement with the bank and according to the bank rep we spoke to when they locked us out of the house, the bank was not aware of the contract purchase until after the closing.
  5. Thank you. I am hoping this is just a formality that is required to get us to "sign off". My main concern is obviously worried about it affecting our credit, especially now that we are so close to being about to get a mortgage on our own. I did make an appointment tomorrow with an attorney, but I really would like to avoid a bunch of legal fees if possible.
  6. I was under the impression that our names would be added to the deed. But am still digging through our paperwork. Can a foreclosure be added to a person's public record and credit report if they are not on the mortgage nor were they properly notified of this foreclosure?
  7. We have a unique situation. In 2009 we bought a house on contract from a couple. At closing we discovered that they still had a mortgage on the home for about 9K more than what we bought the home for. Our Realtor at the time, ensured us that we'd be fine, as we deposited our mortgage payments into a savings account at the bank that held the couple's mortgage and the payments would be taken from that account. We also learned that the couple's payment was about $150 more each month than what our payments were. About 1 year later, the husband died. We spoke multiple times with the wife over the next couple of months, who mentioned casually that she was having financial difficulties after loosing her husband. The home was in a borderline "bad" neighborhood and we ended up having a couple of break-ins. Last fall, we decided to move out into a rental and put the house up for sale. We had some projects in the house we still had to finishing up and was days from listing it with our Realtor when we discovered the locks had been changed by the bank. We contacted the bank, who informed us that the payments had not been made (they wouldn't tell us for how long) and that when we moved out, they considered the home abandoned and was expediting the foreclosure process. We had no notification of the mortgage not being paid or of the letters sent to the wife about catching up the payments to avoid foreclosure. The bank rep told us that their contract was with the couple and they had no obligation to notify us. We had almost 20K invested into the home, but was prepared to loose it and move on. Today, we were served with Foreclosure papers that lists us as defendants along with the couple. I am terrified that we will have a foreclosure added to our credit reports and possibly a judgement for the loss after the sale at auction. We were just in the process of paying off previous education debts that would allow us to finally qualify for a traditional mortgage of our own within the next 4 months. Any advice?

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