Made an offer on a house!!!! (Yikes!)
- Thread starter superjedi
- Start date
Replicant Shadow
Active Hunter
I was looking for the "like" button LOL! You are so right Ogait!
CombatBaby
Well-Known Hunter
DUDE! a house is a house... most things that are more than 15 years old need work anyways.
it's all steps...new siding (brick not a problem in your case as much) new roofs, plumbing maintenance, insulation, windows, etc. etc.
If you spend money here and there you're really only increasing the value of your home.
That's awesome you got approved and the sky looks pretty clear.
I was saving for a house til I lost my job earlier this year.... but i just got a new one yesterday...start tuesday.
Hope all goes well
POST MORE PICS if it's a go
it's all steps...new siding (brick not a problem in your case as much) new roofs, plumbing maintenance, insulation, windows, etc. etc.
If you spend money here and there you're really only increasing the value of your home.
That's awesome you got approved and the sky looks pretty clear.
I was saving for a house til I lost my job earlier this year.... but i just got a new one yesterday...start tuesday.
Hope all goes well
POST MORE PICS if it's a go
superjedi
Sr Hunter
Got a call from the realtor earlier. The seller's termite/moisture inspection was done today. It's been raining on and off the past 3 days or so, so we figured that would be good to really see about moisture intrusion.
He did tell us the house would be getting treated for termites, which is not necessarily a show stopper. My dad said when they sold their house in CA they had to have it treated, too. They also found one joist under the house that would be getting repaired. So all in all. . . looking pretty good.
Our inspection is Monday morning, so we'll see how that goes. Still keeping our fingers crossed that all goes well.
He did tell us the house would be getting treated for termites, which is not necessarily a show stopper. My dad said when they sold their house in CA they had to have it treated, too. They also found one joist under the house that would be getting repaired. So all in all. . . looking pretty good.
Our inspection is Monday morning, so we'll see how that goes. Still keeping our fingers crossed that all goes well.
Replicant Shadow
Active Hunter
Termite Section One work is dominate on coastal regions. Here in Cali on the coast termites typically return within 3 years after a chemical treatment. If the joist is the only issue, then you are doing great, less impact on the seller which allows more repair monies to be directed to other issues. Pay serious attention to the sewer line (or septic, which I would get a seperate, specific report) and electrical aspect of your Physical Inspection Report, which is being conducted on Monday.
superjedi
Sr Hunter
And the process marches on!
Our home inspection went pretty well. There were a couple areas of concern, just as I expected with an older house, but nothing too dramatic. The inspector went under the house in the crawlspace and couldn't see any evidence of active termites or termite damage, so he's not sure what the seller's inspector was talking about last Friday.
After discussing our inspection report with our agent, we've put together a list of repairs we're requesting of the seller. As long as they agree and sign a paper to that effect, we'll proceed with the appraisal!! We're getting kinda nervous at this point, as the appraisal is the only major step remaining before closing. :wacko
Our home inspection went pretty well. There were a couple areas of concern, just as I expected with an older house, but nothing too dramatic. The inspector went under the house in the crawlspace and couldn't see any evidence of active termites or termite damage, so he's not sure what the seller's inspector was talking about last Friday.
After discussing our inspection report with our agent, we've put together a list of repairs we're requesting of the seller. As long as they agree and sign a paper to that effect, we'll proceed with the appraisal!! We're getting kinda nervous at this point, as the appraisal is the only major step remaining before closing. :wacko
superjedi
Sr Hunter
*Sigh*. . . Drama.
Got a call this afternoon from our agent. He had just gotten off the phone with the listing agent who told him she had just found out the house we're under contract for. . . IS UNDER FORECLOSURE!!
Apparently, the genius seller was trying to hide the fact that it is scheduled to be auctioned off on September 10th!!!!!!!!!! Um. . . er. . . huh???????? :confused :angry
The listing agent had found this out from the title company, who had been researching the payoff amount for the seller.
Now our entire buying process is in jeopardy because they have to get permission from their bank to proceed with the sale instead of going to auction.
Found out the sellers are a couple who are divorcing and the husband had been the one taking care of all the bills. They were behind by at least 3 mortgage payments and the wife knew nothing about it.
I just looked under legal notices in our local paper, and sure enough, the property was listed under foreclosures.
Good Lord, did this guy think this information would never come out?
Now we have to wait till Monday or Tuesday to see if we can proceed with the sale, into which we already have over $1000 in earnest deposits and inspection fees.
If they won't allow the sale, I'm taking the guy to small claims court to get our money back. :angry
Got a call this afternoon from our agent. He had just gotten off the phone with the listing agent who told him she had just found out the house we're under contract for. . . IS UNDER FORECLOSURE!!
Apparently, the genius seller was trying to hide the fact that it is scheduled to be auctioned off on September 10th!!!!!!!!!! Um. . . er. . . huh???????? :confused :angry
The listing agent had found this out from the title company, who had been researching the payoff amount for the seller.
Now our entire buying process is in jeopardy because they have to get permission from their bank to proceed with the sale instead of going to auction.
Found out the sellers are a couple who are divorcing and the husband had been the one taking care of all the bills. They were behind by at least 3 mortgage payments and the wife knew nothing about it.
I just looked under legal notices in our local paper, and sure enough, the property was listed under foreclosures.
Good Lord, did this guy think this information would never come out?
Now we have to wait till Monday or Tuesday to see if we can proceed with the sale, into which we already have over $1000 in earnest deposits and inspection fees.
If they won't allow the sale, I'm taking the guy to small claims court to get our money back. :angry
fettpride
Well-Known Hunter
This is actually a little bit of an area of expertise of my own.
Check with your agent - ask him/her to bypass the listing agent for this ...
Have your agent contact the the title company and get the bank's contact info that owns the home. Since it's in foreclosure, it qualifies for a "short sale". This is where the bank will entertain offers directly to them on the house in question. If they are open to offers, have your agent contact the listing agent and advise them that you're wanting to make an offer directly to the bank. That agent should be the first to get the appropriate paperwork/information from the bank if he/she wants a commission. Make your offer and submit.
A short sale is only possible on bank owned foreclosures, or homes that have been under "hardship" through the bank or financial institution that owns the deed. It's where a bank weighs how much is left owed vs. what they would accept from YOU to keep from having to hold the home in limbo, or auction it off for a huge loss. A bank does NOT want to own homes. If they can get a reasonable offer from you (less commissions from both agents) often times it's much more beneficial to the bank to accept your offer rather than auctioning it off. The savings is passed onto you. Your advantage here is that a bank actually owns it, if it were a private party or flip pro - you wouldn't have a shot in the dark. In certain circumstances, it could be made even more attractive to the bank that owns the home if both agents forfeit .5% - 1 % of their commissions. In a lot of cases it's just enough to make the sale to the bank, and they still get paid. These are tough times and may be open to being creative like that.
But be careful. KNOW the bottom line - and what the fair market value of the home is. Your agent should have already done this homework with comps in the area. But with the market the way it is ... what's left owed on the home may be far more than the current market value and that is a risk you DO NOT want to take You will become a statistic. Because we cannot foresee the future in the market. It's a huge gamble if you took that sort of risk. If the economy improved and went back to normal overnight, you could actually make a few bucks, but we all know that is NOT going to happen. BE CAREFUL !!
On a side note, it's fundamentally the same no matter where you are. You should get every penny of your earnest money back. The inspection fee however - well you nailed it. Small claims. And depending where you are, that could be tough as some districts charge upwards of $3k to even file small claims anymore. And chances are you've only got about $400 wrapped in inspection fees at this point (Whole Home Inspection). The seller should have covered the pest and dry rot.
If you need anymore advice, give me a ring brother. I did this sort of thing for 10 years and I was one of the few that didn't lose my shorts in the end. Instead cancer got us But it's a pretty good reference nevertheless
best,
-Chris
Check with your agent - ask him/her to bypass the listing agent for this ...
Have your agent contact the the title company and get the bank's contact info that owns the home. Since it's in foreclosure, it qualifies for a "short sale". This is where the bank will entertain offers directly to them on the house in question. If they are open to offers, have your agent contact the listing agent and advise them that you're wanting to make an offer directly to the bank. That agent should be the first to get the appropriate paperwork/information from the bank if he/she wants a commission. Make your offer and submit.
A short sale is only possible on bank owned foreclosures, or homes that have been under "hardship" through the bank or financial institution that owns the deed. It's where a bank weighs how much is left owed vs. what they would accept from YOU to keep from having to hold the home in limbo, or auction it off for a huge loss. A bank does NOT want to own homes. If they can get a reasonable offer from you (less commissions from both agents) often times it's much more beneficial to the bank to accept your offer rather than auctioning it off. The savings is passed onto you. Your advantage here is that a bank actually owns it, if it were a private party or flip pro - you wouldn't have a shot in the dark. In certain circumstances, it could be made even more attractive to the bank that owns the home if both agents forfeit .5% - 1 % of their commissions. In a lot of cases it's just enough to make the sale to the bank, and they still get paid. These are tough times and may be open to being creative like that.
But be careful. KNOW the bottom line - and what the fair market value of the home is. Your agent should have already done this homework with comps in the area. But with the market the way it is ... what's left owed on the home may be far more than the current market value and that is a risk you DO NOT want to take You will become a statistic. Because we cannot foresee the future in the market. It's a huge gamble if you took that sort of risk. If the economy improved and went back to normal overnight, you could actually make a few bucks, but we all know that is NOT going to happen. BE CAREFUL !!
On a side note, it's fundamentally the same no matter where you are. You should get every penny of your earnest money back. The inspection fee however - well you nailed it. Small claims. And depending where you are, that could be tough as some districts charge upwards of $3k to even file small claims anymore. And chances are you've only got about $400 wrapped in inspection fees at this point (Whole Home Inspection). The seller should have covered the pest and dry rot.
If you need anymore advice, give me a ring brother. I did this sort of thing for 10 years and I was one of the few that didn't lose my shorts in the end. Instead cancer got us
But it's a pretty good reference nevertheless best,
-Chris
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superjedi
Sr Hunter
OK, the emotional roller coaster ride ain't over yet.
Got a call from our agent today saying the sale will be allowed to proceed. He told me the seller's foreclosure had been "postponed" by 30 days, which should be enough time for us to go to closing.
Dang. . . I'm getting to be a nervous wreck about this. :wacko
Got a call from our agent today saying the sale will be allowed to proceed. He told me the seller's foreclosure had been "postponed" by 30 days, which should be enough time for us to go to closing.
Dang. . . I'm getting to be a nervous wreck about this. :wacko
ShocKWavE
Well-Known Hunter
We had to cancel. Everything was a go and was looking good. Our general inspection was pretty thorough but was non-intrusive, meaning they don't lift up flooring, go into the walls, etc. Anyways, I did my own final look through and found a cracked slab. The house was bank owned so they didn't offer any disclosure. Had it looked at by several professionals who said it could be repaired, but I don't want to carry that disclosure with me.
Now I'm fighting for my deposit. No matter what I am out about $800.00, but it could be about $4000.00. Probably going to miss the $8000.00 tax credit now too unless it is extended.
Now I'm fighting for my deposit. No matter what I am out about $800.00, but it could be about $4000.00. Probably going to miss the $8000.00 tax credit now too unless it is extended.
superjedi
Sr Hunter
Sorry to hear that, ShockWavE.
Our situation is moving in fits and starts. We got the appraisal back clean, and over our offer so that is all good to go.
But today we got a call from our agent saying there is still repair work that needs to be performed to fix one of the items our inspector identified.
The inspector had identified some evidence of staining in the downstairs ceiling that he traced to a toilet upstairs. He said the toilet must have leaked at some point. Well, it turns out it was more of an "active" leak and now there's some water damage that has to be repaired.
We were all set to close on Tuesday the 15th, but we'll probably have to push that back by about a week. :facepalm
We were talking about it and agreed that it's much better to have found this out now rather than the day after closing!
Our situation is moving in fits and starts. We got the appraisal back clean, and over our offer so that is all good to go.
But today we got a call from our agent saying there is still repair work that needs to be performed to fix one of the items our inspector identified.
The inspector had identified some evidence of staining in the downstairs ceiling that he traced to a toilet upstairs. He said the toilet must have leaked at some point. Well, it turns out it was more of an "active" leak and now there's some water damage that has to be repaired.
We were all set to close on Tuesday the 15th, but we'll probably have to push that back by about a week. :facepalm
We were talking about it and agreed that it's much better to have found this out now rather than the day after closing!
Madrid Boba
Active Hunter
Good luck!!
Looks nice....
Alfredo
Looks nice....
Alfredo
superjedi
Sr Hunter
Leak repaired: Check!
All other work: Check!
Well, we're reeeeeeally close now. We're all set to close Friday morning at 10:00! The sellers have a few last items to move out of the house, and we're going to do our final walk through just before we go to the closing in the morning.
I'm really nervous and excited today. By this time tomorrow, we could (will) be home owners!!
*Gulp!*
All other work: Check!
Well, we're reeeeeeally close now. We're all set to close Friday morning at 10:00! The sellers have a few last items to move out of the house, and we're going to do our final walk through just before we go to the closing in the morning.
I'm really nervous and excited today. By this time tomorrow, we could (will) be home owners!!
*Gulp!*
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Boomer Fett
Active Hunter
YEEEESSS!!! Welcome to the world of home repair and lawn management!!!!
Replicant Shadow
Active Hunter
If you didn't pull any contingencies then your deposit will be returned. On REO's of course they make you sign their Addendums and such which try and convert the sale into AS-IS sale. There is no such thing as an AS-IS technically in California, and in the case of a cracked slab, you should be able to exit the transaction. On the Tax Credit, my boss and Broker Diana is pushing hard in D.C. to get that extension pushed through. My sources on the Hill tell me that the extension is very likely.
Congrats SuperJedi! Few more hours!
superjedi
Sr Hunter
cool bro,,now what kind of house warming gift,,, maybe a rake and some lawn bags
Tim
Housewarming gift? Hmm. . . know anyone with a big truck who likes to lift heavy things?
