Many people, even in this economy and housing market still want to buy a house. For many men it’s a status symbol. For many women, it’s a hard wired imperative as they want a “nest” to raise a family. Unfortunately, our credit reporting system often makes them appear as a bad credit risk, even though they are not. Bad stuff just happens to good people. As a note buyer, I see it all the time – people who purchased a home through owner financing with poor or bad credit that paid their private mortgage on-time, religiously for many years. Here’s an example. What does having hits to a person’s credit because of health insurance company delays or refusal to pay legitimate medical bills have to do with paying their monthly mortgage? There are many more but you get my point.
To answer the question, “Do Home sellers offering owner financing check credit?” The answer based on the hundreds of owner financed sales I’ve seen, is usually not. Although informal, it’s like the old sub-prime loans except better because these loans are usually no credit check home loans. They even could be called no doc home loans because income also isn’t usually checked. There are two primary reasons for this. First, the credit system isn’t really set up for individuals to check. Secondly, most home sellers are so desperate to sell their home that they really don’t want to know. They just want to get rid of their property.
So if you have bad credit and are fretting about whether a home seller will want to pull your credit, don’t. In the unlikely event they request a credit report, just have your ‘story’ ready. If that doesn’t work, just move on. There’s plenty of eager home sellers who will cooperate, although it’s a good idea to work on getting your credit repaired as many things you buy will be affected (cost more). Just a few examples are homeowner’s insurance, car loans, and credit cards. It can even affect getting a new job. In the mean time don’t let bad credit keep you from buying your dream home. You deserve it. Buying a home with bad credit
will be a distant worry before you know it.