Property Owner here Needs Help BAD

7 Replies


Any advice will help. I am a homeowner in Michigan who currently resides in my single family dwelling. This is the only property that I currently own. I have terrible credit. Also, I am currently self-employed with minimum income as I have previously been disabled. I owe property taxes that are due ASAP! I have been looking for asset based hard money private lenders. I figured, I should borrow, use funds to pay the property taxes and complete repairs to bring it up to date as well as personal expenses. If I am able to do this, I would be clear of property taxes and would just owe my lender. I will pay the lender according to the contract, then flip the home so that I can pay off the lender quicker.

Does this seem realistic? Are there any lenders that will lend to a property owner, asset-based only, no credit check, no income verification (only because its currently minimal, but not for long) and possibly no personal guarantee??? If I have to submit tax returns then I will.

I also had another idea to just sell AS-IS, take the funds, purchase 2 properties (1 to live in and 1 to flip). The only problem is it's worth more if I can get the repairs completed and property values are skyrocketing in my area, so I'd really rather not sell right now, maybe in a year.

I own an LLC does this help?

Also, I have never received a mortgage, a homeowners loan, a homeowners grant, repair assistance or anything.

I've checked businesses that either require money to loan you money which is ridiculous. Also, many say that because I live in my property, that's an issue.

Please jump in and respond. Thanks!

Sell as is and become a renter. Do not try to rush into investing as you are not financially stable.

You first need to get yourself a job. Self employment is not going to work for you and is only going to hold you back. Next work on raising your credit score and educate yourself on real estate investing. Investing is high risk. You could lose it all if you are not properly educated on finances.

I agree with @Thomas S. You should sell the property and get your financial life in order. I recommend buying the book "Set For Life" from @Scott Trench and learn how to build a solid financial foundation. Then you could try a house hack or other investment opportunities down the road.

@Unfortunately I don't see any HML lending you money with a terrible credit score and no apparent way to pay them back. Sell the house for what you can get, and don't even think about getting into real estate investing until you have income and improve your credit score.

This is the situation:

I have been on a payment plan with the treasury dept. I defaulted in March. They will not accept payment from March til current, explaining to me that I have to pay the entire bill for the past due years. I've never had a note/mortgage on the property. I have never taken out a loan or grant on the property. I own this property free and clear. It is completely paid for. I just owe property taxes on the home, that's it. My business does generate income per project not weekly. Also, I'm currently in training for a position with an outside company that starts paying at the end of the month. I have tax returns to validate my income. Also, I have another form of monthly income. I am able to make monthly payments with the income I currently have. With that being said, with my current living expenses, income is currently limited but on the rise. I just don't have the entire amount for the property tax bill. What do you suggest in this instance??? Still sell??? Also, if I just move out so that it's non-occupied, will that help to get a loan?

The property is in decent shape, but does need some repairs, updates and replacements.

Someone mentioned in No-doc lender option on one of my other posts. I'll check that out as well as this bankruptcy idea. Not sure if that will allow me to keep my home, and don't really want to go that route, especially when the rest of my credit could be cleaned up in a matter of my catching up with my payments. I did find a private lender but his contract was astronomical. I'm also trying to we out the legit from the scammers.

If you have a lot of equity in the home but are in terrible financial shape that you're unable to keep the house in repair nor pay the property taxes, it might still be a good idea to sell if it'll help you in the long run. Otherwise, you may have to take out a loan that will indeed have a high interest rate due to your credit. Then, you have to worry about not only paying off that loan, but also setting aside money for the next round of property taxes so you don't have this happen again.

You need to find a way to increase your income because monthly housing costs aren't going to go away (mortgage/rental lease or not). You should each month be putting away money to pay for repairs, insurance, and taxes on that house. That is your house payment when there's no mortgage.

Is the house is good enough shape to rent out a bedroom for some extra cash each month?

How much do you owe for property taxes, and how many years behind are you? My first thought was also sell the house, but if it's paid off except for the taxes, your monthly financial obligations may be less for you to stay rather than paying rent. I would echo others' advice about not jumping in to any investing until you get your credit and financial situation cleaned up first. In the mean time, can you take on a roommate or two to increase your income to pay down the outstanding taxes?

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