Buying 1st home and settlement obstacles

I’m new to the group and although my debt is relatively minimum,I just graduated from college and am in the process of buying my first house and so therefore want to get a hold on the debt now. My question is this-financially I wasn’t prepared to purchase this house but I have a 9-month-old and the opportunity that the seller presented was something I couldn’t pass up (i.e. An older relative is selling me their house for $30,000 less than the appraisal value).

Having just left college,I have some credit cards and other accounts in collections that are on my credit report and fear that some more may pop up eventually.What could happen,at worst case scenario,to prevent me going to settlement on this house and what can I do to get prepared or fix this before it happens.Any advice is greatly appreciated.I don’t have any extra cash on hand to pay off any of the accounts in collections so what other options do I have?

Buying 1st home and settlement obstacles

Buying a home – medical reasons

We have had a lease to purchase for a year now and they have extended the terms for 6 months then will raise the lease amount and home value 1% per month. They wanted to raise the house price by $10,000.

The monthly lease is really too high. Looks more than possible on paper and we are being careful with spending but it seems we are always trying to catch upon bills ( they fall opposite pay times)and two car loans ( on is the GMAC Smart Buy works like a lease) and my car I got with the 0% deal but it doesn’t get paid off real fast and about $4,000 is owed over it’s value according to several sites I have checked. Also – neither of us take all our prescriptions and I skip every other day with mine. Being an EMT I should know better but even the co-pay gets to bee too much at times.

Now we are looking for a different home. Yes it will help to get a more inexpensive home but the main reason is medical. They have found that I have 8 bad discs and my spine is collapsing so soon the 3 flights of stairs ( 3 floor no bathroom on the main) will be too hard to navigate.

Heres the deal:

1- I talked to a mortgage broker a few months back and we got my credit reports and went over every thing. It shows two state tax liens that were both paid.

Several “nicks” from where we went through CCS and then settled and paid them all off but it doesn’t look good on the report. That’s doesn’t seem fair since we did what we could to get them paid and then paid them off before we needed to.

We had a foreclosure – over 2 years old now because I had lost my job and the bank refused to take partial payments.

There is one lien on there that the company NOR the county knows anything about. The county says they have no record of it but it doesn’t seem we can get that off our report.

2- Since going through all the reports and getting things updated or marked paid where ever we could our score DROPPED. They say that happens at first.

3- we have NO money for down payment or closing so would have to go 100%, one house we like the sellers will carry second mortgage on it.

So – Tell me what bank will work with us and not “farm” out to others and drop the score more.

With our income now we can easily manage a payment close to what we are paying now – maybe $100 less a month would be great and we are looking at houses in the $160-170,ooo range instead of the $200,000 one we are in now.

We have been on time with all our payments on this house lease and have a three year record of renting after the house foreclosed (they didn’t process the forclosure until over 4 months later and the collateral from the sale paid the existing loan off.)

Whew! sorry for the long winded email but would love to hear what banks will look at the whole and not just the score.

Buying a home – medical reasons