contract for deed home (Eagan: sales, rental, credit score) - Minneapolis - St. Paul - Minnesota (MN) -Twin Cities - City-Data Forum

Dsamsom · 07-22-2014, 02:26 PM

I am relocating to the metro area and I am seeking a contract for deed home of 130,000 or less 1,100 sq ft or more within 25 miles of Eagan. Does anyone know of such a place? the places I have seen so far should either be torn down or are ridiculously over priced. Any suggestions? I would consider other areas as well.

BillWallace · 07-22-2014, 03:20 PM

That's a tough combination. First of all, not a whole lot of sellers want to consider a Contract for Deed. They need to get the money out of the house so they can use it right away.

I did do a search on MLS for houses within 25 miles of Eagan that are priced less than $130k, 1100+ finished and would consider a Contract for Deed and found 5 that match. There are a few anyway.

Your other option is to search on Craigslist.

StPaulGal · 07-22-2014, 04:05 PM

I don't want to burst your bubble, but that is a really, really low budget for a home in the metro area. The median home price here is almost double that. Contract for deed is also an exceptionally rare sales proposition and is rarely favorable to the buyer (and often borderline predatory). I don't mean to be harsh, but you may want to seriously consider renting until you have a substantial down payment and a strong credit score in place.

BillWallace · 07-22-2014, 07:58 PM

Quote:

Originally Posted by StPaulGal

Contract for deed is also an exceptionally rare sales proposition and is rarely favorable to the buyer (and often borderline predatory). I don't mean to be harsh, but you may want to seriously consider renting until you have a substantial down payment and a strong credit score in place.

If they really want to be in a home Contract for Deed can be an okay option, especially for someone who has a good job and good cash on hand but poor credit.

Any seller who accepts this is going to require at least 10% down and a balloon loan option with an interest rate 2-4% above market rate. You are betting that your credit will be strong enough in 2-3 years that you can finance with a traditional lender. If that isn't the case you lose any money you've put into the home and the seller has an easy path to evict you (much easier than rental eviction).

Dsamsom · 07-23-2014, 01:31 PM

Thanks for the input. I have seen up to 20 houses that were cfd, unfortunately they have all been dumps. I have checked craigslist as well, But with the same results. It makes me wonder how anyone who's not making 60 bucks an hour can afford a home there, maybe they can't. Unfortunately I can't rent due to my situation. I have found that the banks in the area don't seem to want to be bothered with a loan they consider "spare change". I have no problem with credit or debt, but I still can't get a loan until I'm up there working. Standard catch 22. The banks I have spoken to could give me a loan if they chose to, but they prefer absolutely no risk of any kind. I wonder if they would act the same way if a friend or relative in the same situation were the one asking for a loan.

uptown_urbanist · 07-23-2014, 07:03 PM

Quote:

Originally Posted by Dsamsom

Thanks for the input. I have seen up to 20 houses that were cfd, unfortunately they have all been dumps. I have checked craigslist as well, But with the same results. It makes me wonder how anyone who's not making 60 bucks an hour can afford a home there, maybe they can't. Unfortunately I can't rent due to my situation. I have found that the banks in the area don't seem to want to be bothered with a loan they consider "spare change". I have no problem with credit or debt, but I still can't get a loan until I'm up there working. Standard catch 22. The banks I have spoken to could give me a loan if they chose to, but they prefer absolutely no risk of any kind. I wonder if they would act the same way if a friend or relative in the same situation were the one asking for a loan.

I suspect it's the lack of local job that's the problem. When we applied for our mortgage, they wanted us to have a stable work history and an assumption that my job was going to continue. Why can't you rent first?

Dsamsom · 07-26-2014, 10:07 AM

I can't rent because of my fuzzy kids. Several years ago I started a rescue for abandoned pets. I have 8 unadoptable cats. I won't take innocent lives just so I can move. I have been told by the last bank it may take up to 2 years to get a loan from them. Nonsense. Any other options would be appreciated. I have been a massage therapist for 6 years and I am planning to stay in my profession but It doesn't seem to matter to the banks.

codydog2 · 07-26-2014, 06:13 PM

They most likely want some proof that you will have a job when you get here. If you dont have an employer lined up and have been in the same type of profession for years they will then need to see at least a few months of steady income from working here. I dont really think that is unreasonable from the bank. They want to make sure you can make the payments.

Do you have family or friends who could take a cat or 2 or 5 for a little while? You could also try talking to some of the local rescues and see if someone would possibly be willing to do a temporary foster for you to get you down to fewer cats. You could then rent for a few months, establish enough of a job history for a lender and then get the rest of the kids back. You could also possibly board a few for a time as well. Not the greatest solutions but you do have a few options.

You may be able to find a landlord in a more rural area who would be ok with the cats (and they would be legal). You could also look at craigslist for a landlord in the metro but that may be a dump as well. But you would only need to be there long enough to establish a job history.

Dsamsom · 07-28-2014, 01:44 PM

To answer your questions. There isn't anyone I could foster them with. One of the reasons they are unadoptable is that they have bonded with me and no one else. I would never take them to a rescue. With their medical problems no one would adopt them and being stuck in a small cage in a strange place would make them insane. They are my kids and I have taken it upon myself to care for them the rest of their lives. Feral cats tend to be different because they bond with one person maybe two that's it, and some of these have been abandoned which gives them trust issues just like any other child. Being human from what I've seen isn't a prerequisite for being a person. If anyone out there has a place for all of us please let me know.
Thanks.