Townhouse in North Aurora (Chicago, Naperville: real estate, apartment, foreclosed)

[ssilver1215]

Hello! My husband and I currently live in DeKalb, where he works full time. I am just finishing my Master's degree and have accepted a position in Chicago. We've decided that we have to move a little closer to the city because an 1 1/2 to 2 hr commute for me just isn't going to work. I think Batavia, North Aurora, or Geneva would work out best because they're so close to the train and 88.

The problem is that since we've both been in school for quite awhile we haven't saved any money and I have some lingering credit problems from a previous relationship - seems like a different life. Does anyone have any advice on purchasing a T/H, Condo, single family home without money down or great credit??

Thanks!
Shannon

[chet everett]

Originally Posted by ssilver1215

Hello! My husband and I currently live in DeKalb, where he works full time. I am just finishing my Master's degree and have accepted a position in Chicago. We've decided that we have to move a little closer to the city because an 1 1/2 to 2 hr commute for me just isn't going to work. I think Batavia, North Aurora, or Geneva would work out best because they're so close to the train and 88.

The problem is that since we've both been in school for quite awhile we haven't saved any money and I have some lingering credit problems from a previous relationship - seems like a different life. Does anyone have any advice on purchasing a T/H, Condo, single family home without money down or great credit??

Thanks!
Shannon

You know what is great about renting? If you have an advanced degree, and a full time job, but lingering credit issues and no money saved up and seem like a decent person some kindly landlord will be happy to let you sign a nice simple lease. If you seem especially responsible and can get your previous landlord to vouch for you, some smaller landlords will probably waive /lower the security deposit.

You know what would SUCK about trying to BUY or LEASE-to-OWN a place in your situation: you've got nothing to gain. What kind of property owner is going to do a lease to own for you? Somebody that wants to charge you inflated rent and/or otherwise take advantage of you. What kind of lender is going to do 100%finance to somebody with "lingering credit issues" in this environment? NO ONE!!!

Find a nice cheap, safe apartment. There are PLENTY all along the Burlington from Naperville right though Berwyn. You can WALK to the train (save money), have no worries about maintenance (save more money), find a place with included / tiny utilities (save even more money), have no reason to waste money on 'upgrades' at Home Depot (save really HUGE money) and in a year or so have MUCH better credit and a tidy pile of cash for a DOWN PAYMENT on a place that you can really afford.

Ask the folks that were like YOU a year or so ago -- they could ONLY buy a place with 100% financing on a 'teaser rate' ARM. The mortgage guys told 'em "don't worry you can do a REFI in no time". Well these are folks that got behind and GOT FORECLOSED.

Relax. Take a breath. FIND A RENTAL.

[Ophidian14]

Originally Posted by ssilver1215

Hello! My husband and I currently live in DeKalb, where he works full time. I am just finishing my Master's degree and have accepted a position in Chicago.

Why did you accept a position in Chicago in the first place if you live in Dekalb?

[Steve-o]

Originally Posted by Ophidian14

Why did you accept a position in Chicago in the first place if you live in Dekalb?

Is that any of your business?

[amyrachel]

I agree, I would rent, save, don't open any new credit accounts and pay your bills ontime. In a year or two, your credit score should bounce up, you will have saved and can buy then.

Plus, what if you don't like your job? What if you don't like Aurora? Renting will let you not have the commitment to stay in a job you don't like, or in an area you may not like and you can explore the area to find exactly where you want to be.

I have heard real estate prices are expected to drop more before they rebound so you may be able to get more for your money in a year or pay less.

Congratulations on your new job

Another reason I would not buy now or ever with no money down is because if the housing market falls more, you are stuck with an upside down mortgage which means you can't even afford to sell! You will owe the bank more money than your house is worth and if you sell, you still owe the bank money on a house you no longer have. Just too risky to buy with no money down even if you have perfect credit. I don't think they even let people do that anymore? but I could be wrong.

[chet everett]

Dekalb has a lot smaller employment base than Chicago.

I suspect pretty much every "college town" sees only a tiny percentage of graduates 'stay put'. In the case of the OP, her husband is currently employed in Dekalb and I would guess it is a fair question to ask if she did try to find employment nearer to Dekalb as a way to avoid a long commute, though as she has accepted a position in Chicago the priority now is to find a place that won't have both of them facing horrendous commuting times.

Given the very challenging mortgage situation, especially for those without a downpayment or stellar credit history, it is much wiser to rent for a while. Of course, with more information it may be that there are options that would be good for this couple.

If the OP wishes to volunteer information that MIGHT make it easier to suggest a rent-to-own or other situation she may wish to consider how permanent her position and that of her husband appear to be -- if there is a high likelihood that he'll be working in Dekald and she'll be working Chicago into say 2012 then I might suggest they seek out something other than a simple lease. Additional info about the kind of work they both do, their potential for income growth and plans for kids might also lead me to suggest different strategies for angling toward a property purchase.

Without more info I think renting is their best option.

[Ophidian14]

Originally Posted by Steve-o

Is that any of your business?

Of course it is. If they didn't want our help, why post at all?

[aragx6]

How would knowing this information help you help the OP? She was pretty clear about her needs and desires, and is obviously planning to move, which we should do our best to help her with.

I agree with the other posters who suggested renting, at least for another year.

[Steve-o]

Originally Posted by Ophidian14

Of course it is. If they didn't want our help, why post at all?

Thats the thing, theyre asking for help, and prying into their personal business seems odd. She might have gotten a higher paying job with more benefits, which is more than enough reason to take the job and want to move closer to Chicago.

[ssilver1215]

Thanks for all your advice. It is very helpful. To answer some of your questions... I am currently working as an Undergrad Advisor at NIU in DeKalb. It is my grad assistantship though so when I graduate in May I lose the position. I love this job and was hoping to find a full time Academic Advisor spot at a college - NIU, community college, whatever. The openings are pretty rare; the only place I found and was offered a position was UIC. Of course, the position and benefits were outstanding so even if I had been offered a similar spot at NIU I probably would have gone with UIC.

Anyway, my husband has a stable position in DeKalb and will probably be there for the next couple of years, at least. We really do want to find something in between the two cities, probably along I-88. Our lender has advised us that though our credit is not as low as I'd thought, we should continue working on it and saving money for at least another six months. So we're mainly looking for places to rent in the Aurora/St Charles, etc. area now.

I think that answers most of the questions posed. Yes, we'd like kids in a year or two. Our combined income will hover around 50,000 for the next few years when hopefully it will increase because my husband will have completed his college degree.

Any suggestions? Thanks again for the help!