Need to cash out unencumbered inherited property to buy sibling out

The simple answer is DON'T ASSUME. She needs to sit down with a local licensed Loan Officer, give them a full and complete application, and them them review her situations. She may truly have credit issues big enough to cause a denial. On the other hand, no one knows until they look, and she may be just fine. The clearing and transfer of title in these situations usually isn't a big issue, but again, something a licensed mortgage professional and a title company need to review.

For traditional lending, equity does not take the place of responsible borrowers. You have to have acceptable credit to get a loan... For Hard Money loans, credit does not matter.. Equity matters.. However you will pay a much higher rate, and a ton of fees, but there is a loan product out there.. The best advice I can give is to have her contact a local mortgage broker, not a bank, and apply with them.. BK and collections are bad, but enough time has passed to where it might not matter... her minimum score for most lenders has to be 620 - 640, so it's possible she can get an FHA loan.. WilliamAcres.com

Larry and William are both right. In today's lending world, poor credit scores and outstanding collections can be a deal killer for traditional lenders. Her best option is to work with a local Mortgage Banker/Broker. The broker can actually review the specifics and determine if there is a way to make a traditional loan work, otherwise, she would be looking at having to use a hard money lender. It is not uncommon for someone to have "bad" credit, only to find out that it only needs a little work to get it were it needs to be for a traditional loan. She should check out her selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com