you are a lot better off than most people if you only have -12% negative equity – most others are -20 to -30+% in the hole (including me)

rent out a room for extra income

Especially if you are planning on an investment property deal in the future

However I can tell you, this is not the companies fault. The banks have everything spread out all over the friggin' place. Expect to fax anything to them at least 3 times.

Forming a corporation would not accomplish what you want as the corporation would have no history, assets, or provable income. Even if a lender did decide to allow the corporation to be the primary purchaser I am sure they would require a co-signer to guarantee the mortgage loan. This is called a recourse loan as your husband's income and credit would be used.

If you and your husband agree to purchase a property together and both applied for the mortgage loan, then both your income and credit would have to be considered. So the default or foreclosure you are currently in would be a factor as it would be on you credit report.

If a mortgage is in default and the current owner want to offer or request a deed-in-lieu of foreclosure this is for the lender to approve, this is not something that a third party would be privy to. Therefore another person could not default on a mortgage and expect to get a deed-in-lieu of foreclosure. The other thing is what person would purchase a property with the intent of losing it to foreclosure, thus having a negative impact on their credit for several years?

You might purchase the property as an investment property. You might even use FHA to purchase the investment property, however, you would not really benefit as the most favorable interest rates are given to those that purchase houses as their personal residence. Therefore there is no real benefit in purchasing the property as an investment property.

You might consider the following in the purchase of your next home. These methods of purchasing a home normally do not require a full qualifying as a lender would require. In some instances some sellers (Owners) require more than others, some sellers (Owners) less than others

#1 Owner finance (Scan the news paper very carefully for these adds)( there are there)

#2 Little or no qualifying ads in the local newspaper (This might be a come on from a real estate agent so ask many questions before you waste your time and will eventually have to fully qualify)

#3 Lease with an option to own (This is good as you have an option to purchase the property after an agreed on time normally 3-5 years.)

#4 Rent to own (The same as a lease to own with a few wrinkles)

#5 Land contract

Don't expect your local real estate agent to help you with the above type purchases as they will get little or no commission for their services.

In selecting to go this way in the purchase of homes you are pretty much on your own. You might consider checking out and reading a few books on these methods at your local book store or library.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

They have to pay for their loans too, it is not as simple minded as you think.