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Is https://www.housebuyernetwork.com legit? A relative of mine owns a house that they've been trying to sell for about three and a half years now. They've slashed the price several times, and they're at the point that they basically have no other options left. If that company isn't legit, are there any similar companies that are? I don't see any threads about specifically selling houses, and this seems like the best fit, and I don't think this question is worth its own thread.
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Jun 10, 2011 23:59
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TroutFishin4Ever posted:Is https://www.housebuyernetwork.com legit? A relative of mine owns a house that they've been trying to sell for about three and a half years now. They've slashed the price several times, and they're at the point that they basically have no other options left. If that company isn't legit, are there any similar companies that are? I don't see any threads about specifically selling houses, and this seems like the best fit, and I don't think this question is worth its own thread.
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Jun 11, 2011 00:18
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Looking at that, with how much they're pimping how FAST they can buy your house, my assumption is that they will absolutely gently caress you over on the price. Maybe worth checking out, maybe not. They'll probably try to high pressure you, which is always a ripoff red flag. ---- I learned something new today, if you have a first and second mortgage, and you refinance the first, the second mortgage will become listed as the primary mortgage. If the new mortgage wants to be the first mortgage, you will have to sublimate the second mortgage, which carries a fee. I've had a $200 fee on my 2nd mortgage statements for almost a year now, and never even noticed it because I'm on autopay. And nobody through the entire refinance process warned or informed me of this. Fortunately it's not something that will ding my credit or anything, but as someone who prides himself on being thorough with his bills this one caught me by surprise and has left me feeling embarassed. Check and understand your statements every month, and DO NEVER BUY.
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Jun 11, 2011 01:46
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gvibes posted:Why isn't anyone buying their house? Honestly, if I knew, I would help them solve it. It's a very large home (6400 square feet, 80 mostly wooded acres, all brick construction, I can PM you other details) in a rural area. The appraisal on it in 2010 was $485k and it's in very good condition. All I can think of is that there's just not that much interest in a house with more square footage than the population of the nearest town.
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Jun 11, 2011 02:19
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TroutFishin4Ever posted:Is https://www.housebuyernetwork.com legit? A relative of mine owns a house that they've been trying to sell for about three and a half years now. They've slashed the price several times, and they're at the point that they basically have no other options left. If that company isn't legit, are there any similar companies that are? I don't see any threads about specifically selling houses, and this seems like the best fit, and I don't think this question is worth its own thread. More than likely they are a party to a flopping scheme. Basically what happens is that they use falsified broker price opinions (BPOs) to make the bank think the value is far lower than it is, purchase the house with their own money or through a straw buyer while simultaneously marketing the home to a legitimate third party buyer. Two things can happen: 1. The bank is convinced and sells the house for much lower than it's worth, and the broker clears the spread between that and what they sold it for. (and in all but two states, the homeowner can be sued for deficiency on the difference between loan value and sale value.) 2. The bank is smart and sniffs out the scheme. No deal happens, but the company has locked you into a 12 month agreement, won't let you out of it, and their financial distress continues and the home goes into foreclosure since they prevent you from working with any bona fide real estate professional. Want to know more? Here is an article that just came out today that touches on it. http://www.marketwatch.com/story/real-estate-scam-hurts-home-prices-2011-06-10?link=MW_latest_news Not enough? Ask me, I fell prey to a company like this earlier this year. It was a referral from my mother, so I trusted it (she's dying about doing it...). Fortunately, after MANY headaches, we are clear of any ties to these people, have just successfully rented out my current home and am moving to my new home next week. No ill effects, but I also was able to swing both payments if I had to. If I was behind on payments and worked with a company like this, I'd be in foreclosure for sure right now with no where to turn. AVOID AVOID AVOID anything that sounds too good to be true. House not selling after 3.5 years? Get a new real-estate agent, the one they have sucks or the owner is refusing to face reality on market values.
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Jun 11, 2011 02:20
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Saw this on the NYT in an editorial. I really don't see how housing prices are going to recover anytime soon. quote:38 percent of homeowners with second mortgages are underwater. They borrowed against the value of their homes, and they now owe more than their houses are worth. The total number of underwater homeowners in America, with first and second mortgages, is a stunning 22.7 percent. In Nevada alone, 63 percent of all mortgaged properties are worth less than the owners paid; in Arizona 50 percent, Florida 46 percent, Michigan 36 percent and California 31 percent.
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Jun 12, 2011 12:58
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Not sure if that editorial is intentionally dishonest or just confused, but conflating "under water" and "worth less than they paid for it" is not correct. Tons of people have houses worth less than they paid for them, but a big chunk of them have enough equity to cover the spread so they're not under water.
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Jun 12, 2011 22:05
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Usually "under water" is meant to mean that you owe more on it than the property is worth regardless of how much equity you have. Depending on where you look around for your numbers ~20% of homeowners are in that boat right now. Also you have to bear in mind equity doesn't really mean too much unless you're going to sell or possibly refinance or take out a HELOC or something and even then it doesn't seem to count for much unless you have a large amount or even majority of the mortgage paid down. What banks really really care about now is ability to pay, which is based on DTI, credit score, and income. edit: Hard to find a definitive definition but that doesn't seem to be so. Due to the extreme amount prices got over valued, particularly what they sell for today, having "some" equity really doesn't mean much so most short sell losses tend to be pretty bad AFAIK. Which makes sense since not many will have paid down the mortgage enough in 3-4 years to have 20% or more equity in a home, usually they're still paying off mostly interest at that point. \/\/\/\/\/ PC LOAD LETTER fucked around with this message at 00:48 on Jun 13, 2011 |
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Jun 13, 2011 00:20
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PC LOAD LETTER posted:Usually "under water" is meant to mean that you owe more on it than the property is worth regardless of how much equity you have. Depending on where you look around for your numbers ~20% of homeowners are in that boat right now. Also you have to bear in mind equity doesn't really mean too much unless you're going to sell or possibly refinance or take out a HELOC or something and even then it doesn't seem to count for much unless you have a large amount or even majority of the mortgage paid down. What banks really really care about now is ability to pay, which is based on DTI, credit score, and income. He actually had it right. Under water is not having any equity and owing more than it's worth, while being worth less than you paid for does not necessarily equal financial issues. In the former case, it is extremely difficult to exit the debt, while the latter they may take a loss, but have enough equity to close the loan.
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Jun 13, 2011 00:28
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The critical factors for a housing recovery are employment, demand, and supply. I think the "underwater" thing is important, but not for a recovery: instead, it's a potential pool of additional foreclosures. But the emphasis here is on "potential". Someone can obviously be underwater, but still able to make their payments (my mother-in-law is in this situation), and valuing their credit enough that they choose to continue to do so rather than default. For people like that, those houses are not on the market (or might only be marketable as short sales), so they're not adding much to the oversupply side of the equation. Unemployment, on the other hand, drives foreclosures, because it's the loss of the ability to pay that is the trigger there. I think we've moved past the bulk of the subprime loans that were causing otherwise-solvent people underwater to lose their homes as their payments ballooned, regardless of employment status. Now, I'm guessing that there's still a few sub-primes to get through, but most have been dealt with and ARMs aren't killing owners because of low interest rates. So... my feeling is there's a lot of people who will try to sell the instant their house gets above water, which will mean plenty of supply for a long time to come. Banks will try to sell off the inventory they've been sitting on as well, which also adds to the supply. Once we "hit bottom" and prices rise again, they'll do so very, very, very slowly, probably with lots of fits and starts, because of the pent up supply getting fed to the market. The best sign for recovery will be falling unemployment rates. When people have jobs, they can afford houses, and I suspect there's a lot of folks who, as soon as they can afford to, will want to try to jump in before interest rates and prices go back up. That's my hope, anyway. If I had to make a prediction, I'd say we're going to hit the bottom of the price drops in the next two years, and then see a very slow recovery through the end of the decade. In 2020 prices will still be substantially lower than they were in 2007, but they'll be a little bit higher than they are today (with variations in local markets of course, because some markets will recover faster and others won't recover at all).
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Jun 13, 2011 04:01
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Underwater means you owe (aka your mortgage balance) is more than the value of the home. This also means you have no equity. Equity is the difference between how much less you owe on your home than it is worth. It is impossible to be underwater and have equity.
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Jun 13, 2011 05:00
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The difficult part is that even if unemployment drops, a lot of people will have had their credit hosed in the meantime. It would be interesting to see how much the average credit score has dropped since the crisis began, I bet it is quite a bit. With the drive to tighter lending standards, lower unemployment won't mean much since there will still be fewer creditworthy borrowers.
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Jun 13, 2011 05:16
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Credit scores don't mean much. If yours is lower because of the recession, you'll have a lot of company. Those in the business of making loans will adapt. I mean, it's not like some wall street exec is going to say, gently caress my multi-million dollar salary, we're getting out of this business. I'm sure they'll be a bit more careful though and double check your finances to make sure you can actually pay them back instead of just giving away free money like they did in the bubble. But I don't see that as a negative.
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Jun 13, 2011 05:38
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What exactly should one expect from a Realtor? I have been working with a realtor for about 2 months now and basically they set me up in their system to receive auto-emails based on my requirements. They have continued to tweak them when I ask them to and when I wanted to see a house, they would go and show it. I want to make sure this is what realtors generally do as it seems like a very slow process. Having been in sales a few years ago (not homes), I remember being much more aggressive and proactive to find what my client was seeking and I had this same expectation when I first contacted them. Am I just setting the expectations to unreasonable levels or should realtors be chasing you with homes to see instead of just waiting for you to reply on an automated email and letting them know you want to see it? Thanks!
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Jun 13, 2011 19:19
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Your realtor may have given up on you actually ever buying a house. That is probably why they don't spend any time communicating with you.
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Jun 13, 2011 19:25
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DrSeRRoD posted:What exactly should one expect from a Realtor? I have been working with a realtor for about 2 months now and basically they set me up in their system to receive auto-emails based on my requirements. They have continued to tweak them when I ask them to and when I wanted to see a house, they would go and show it. I want to make sure this is what realtors generally do as it seems like a very slow process. Having been in sales a few years ago (not homes), I remember being much more aggressive and proactive to find what my client was seeking and I had this same expectation when I first contacted them. If what you're seeing on the drip is not appealing to you than either your criteria are not matching your needs, or the area isn't. Work with your realtor on better defining your criteria and maybe look into other areas if it's possible. I rode my realtor hard, was calling them every couple of hours, but they were really good and responded right in step with me. You could just have a lazy realtor, they're a dime a dozen so don't feel obligated to stay with them. Terminate their rear end if you get the hint you don't matter. Find someone who wants to find you a house!
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Jun 13, 2011 19:38
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Thanks for the feedback. I figured I would be easy since I had pre-approvals from various banks, VA backing for my loan, and enough for 20-30% down. I gathered about 30 realtor emails back in April and emailed them all at once and this was the first and most aggressive so I stuck with them but I suppose it may be time to move on if they have given up. Does anyone have a better suggestion on finding a good/aggressive househunting realtor? I have stuck mainly with this person because they have been ethical and honest when a 'deal' is really crap and when something is known but undocumented by the posting (Chinese Drywall for one...). Thanks again!
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Jun 13, 2011 20:19
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DrSeRRoD posted:What exactly should one expect from a Realtor? I have been working with a realtor for about 2 months now and basically they set me up in their system to receive auto-emails based on my requirements. How many have you gone to see? We did 3-4 at a time 3+ nights a week until we found something. You can do a much better job of screening listings than they can, we would highlight a bunch online that looked promising, get her opinion on them all and go see the places that sounded good.
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Jun 13, 2011 20:20
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DrSeRRoD posted:Thanks for the feedback. I figured I would be easy since I had pre-approvals from various banks, VA backing for my loan, and enough for 20-30% down. I gathered about 30 realtor emails back in April and emailed them all at once and this was the first and most aggressive so I stuck with them but I suppose it may be time to move on if they have given up. Does anyone have a better suggestion on finding a good/aggressive househunting realtor? I have stuck mainly with this person because they have been ethical and honest when a 'deal' is really crap and when something is known but undocumented by the posting (Chinese Drywall for one...). I found mine by dumb luck, called them (Husband and Wife team) to see a house we saw on Zillow and we weren't working with anyone. They asked if they could show us some stuff and I made sure to tell them that I will fire them if I don't like how they're doing business. They sent us a huge list of everything on the market that met our criteria the following Monday, then a daily drip of new stuff (standard for any realtor, really) we picked out 14 houses and her husband took us around town for 9 hours looking at them all. He even brought snacks and bought us lunch. He was a bit cheesy, but was authentic still. We actually found the home we are moving into this Friday that day and it all worked out. They were great through the whole process (and we had some issues to work through) and ended up having them find us tenants in our current home, which they did. Dumb luck really... But talk to people, on the phone, get a sense of their personality and try them out. YOU are their customer and the only way they make money. Be picky with them!
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Jun 13, 2011 20:25
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TraderStav posted:I made sure to tell them that I will fire them if I don't like how they're doing business. Classy. They might be on commission but I think if you've decided to work with someone they deserve a little respect until they screw up.
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Jun 13, 2011 20:26
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I've seen about 2-3 per month at most since my availability was only the weekends due to working 2 jobs and other responsibilities that prevented me from having my weeknights free most of the time. A lot of the time, the homes I liked online were already pending a sale or not open for viewing for weeks/months. I think I just took my time and now I am on a crunch as I would like to be moved by the end of the summer and I realize I should have been equally aggressive. I have already sent them an email for suggestions, timelines, and where I want to be by when in hopes that they will either get me there or that I can get someone that can. drat house shopping is more challenging than I expected!
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Jun 13, 2011 20:29
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sanchez posted:Classy. They might be on commission but I think if you've decided to work with someone they deserve a little respect until they screw up. I disagree, I'm a much bigger fan of an initial berating to keep them in check from the get go.
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Jun 13, 2011 20:30
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jwitko posted:I disagree, I'm a much bigger fan of an initial berating to keep them in check from the get go. If you think they need to be "kept in check" why work with them in the first place? We saw an agent who might have needed a speech like that, but only once before deciding not to use them. It might be hard to find a good one without a referral though, I'd use ours again without hesitation.
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Jun 13, 2011 20:33
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sanchez posted:Classy. They might be on commission but I think if you've decided to work with someone they deserve a little respect until they screw up. sanchez posted:If you think they need to be "kept in check" why work with them in the first place? This was my issue, I had no base in the area I was looking to work off of. I wasn't as 'harsh' as I posted on the Internet that I was, but it was clear that I wasn't going into the transaction all doe-eyed and ready to make everyone happy. With the money at stake here, you have to be on your feet and ready to do business. I was very friendly with them, and they did not need me once to even come back at them about their abilities. There are so many amateurs, part-timers, and just flat out scheisters in the real-estate business that you must be a smart consumer or be taken to the cleaners. In a transaction this larger, EVERYONE has their hand in your pocket, and will continue until it's all over. When you're dealing with commissioned sales-people, their incentives are NOT aligned with yours, it's your responsibility to get a good deal, it's their responsibility to make a quick transaction for the highest value.
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Jun 13, 2011 20:38
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^^ Fair enough. I understand completely about the commission part, they are there to sell you a house, it doesn't have to be the right one at the right price.DrSeRRoD posted:drat house shopping is more challenging than I expected! Yes, it does involve actually going to look at houses. Keep on top of new listings as they pop up, if you know what you want it should be easy to filter out most of them leaving a set of possibilities. Go see all of the possibilities. Depending on where you are you should be able to find something easily within a month or two.
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Jun 13, 2011 20:39
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DrSeRRoD posted:I've seen about 2-3 per month at most since my availability was only the weekends due to working 2 jobs and other responsibilities that prevented me from having my weeknights free most of the time. A lot of the time, the homes I liked online were already pending a sale or not open for viewing for weeks/months. I think I just took my time and now I am on a crunch as I would like to be moved by the end of the summer and I realize I should have been equally aggressive. I have already sent them an email for suggestions, timelines, and where I want to be by when in hopes that they will either get me there or that I can get someone that can. drat house shopping is more challenging than I expected! Zillow, realtor.com, Trulia, and the rest are WAAY to slow for the serious shopper. By the time it hits your radar, any clean ready-to-move-in nice homes are gone or pending. This is where a good realtor will help you out. That DRIP comes in very early in the morning and will have any new house that hits the MLS. You wake up and see it, tell your realtor ASAP you want an appointment, even if you can't make it, at least you are showing interest.
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Jun 13, 2011 20:40
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TraderStav posted:Zillow, realtor.com, Trulia, and the rest are WAAY to slow for the serious shopper. By the time it hits your radar, any clean ready-to-move-in nice homes are gone or pending. This is where a good realtor will help you out. That DRIP comes in very early in the morning and will have any new house that hits the MLS. You wake up and see it, tell your realtor ASAP you want an appointment, even if you can't make it, at least you are showing interest. Yea, I definitely do. All of the nice houses have been purchased cash lately here (Miami, FL) so I figured my best shot (aside from finding $200k in cash) is to grab some of the houses that are out and were not instantly purchased by people with large sums of cash. I check my email at 6am usually and I always check the emails but even then, by the time the realtor calls and asks about seeing it, it is already pending sale. Thanks for all fo the advice though, I will keep on pushing and consider that I may have to be more accepting to HOA fees since those are a big road block for me ($180-300+/mo is a bit much IMO unless they come in to clean my house and do my laundry) and all over the homes I am looking at but maybe I am just being stingy!
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Jun 13, 2011 20:55
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For my responses: "What's the property appraised at now? If you're offering $95k on a home that's still worth in the low-mid $200s, I don't know how inclined a lender would be to approve that." I don't know. The lender hasn't done an appraisal on it yet, but comparable properties in the area are much, much higher then this, almost at least 150k. My hope is that they hire a lazy agent to appraise it. If not, I'm really not concerned about it. I just see this place as a great deal, and at the very least I'm only out the ~300 dollars I'm spending to get the place inspected. My current living situation is pretty good, so I'm fine if it doesn't work out. "You're buying it as a rental property?" That's wasn't my original plan. It does have three bedrooms though, and I'm unmarried, single, no pets quiet dude, so I planned on renting out the two other bedrooms anyway if I could, to some friends. Since if the lender accepts, I'll have about 25k to put down, I'll have about a $350 month mortgage. With HOA dues and taxes, I'd be looking at about 650,700 dollars a month. I already have at least a few people interested in the rooms for 400 bucks a month each, (Which is cheap for the area I live in, even with roommates) so I'd be breaking about even, which would let me double down on the payments at the very least, if not way more. I don't think she will now though, since my county court records are public. I went and looked her up and they bought the place in 2007 at 220k and she still owes 199k on it. Ouch. Definitely a "Walk away" situation in my eyes. Fun bank story: I was getting my loan approval, and my credit score is just around 650, so my bank approved me for this loan as long as I had at least 20% to put down. But I totally could go with an FHA loan, with only 3.5% down! With a 1500 extra fee! And PMI for 5 years! And 800 a month payments! I might be totally wrong here, but goddamn do FHA loans look like huge ripoffs? What am I missing, I can't understand why anyone would agree to that. However, if the lady want's to just keep living there for 1k, then I'd let her.
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Jun 14, 2011 11:12
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sanchez posted:If you think they need to be "kept in check" why work with them in the first place? I was just joking, I do not regularly berate my realtors before working with them.
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Jun 14, 2011 17:34
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Every week or two when I meet my realtor I kick him square in the balls just so he remembers who the boss is.
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Jun 14, 2011 17:37
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Themagicmoogle posted:Fun bank story: I was getting my loan approval, and my credit score is just around 650, so my bank approved me for this loan as long as I had at least 20% to put down. But I totally could go with an FHA loan, with only 3.5% down! With a 1500 extra fee! And PMI for 5 years! And 800 a month payments! I might be totally wrong here, but goddamn do FHA loans look like huge ripoffs? What am I missing, I can't understand why anyone would agree to that. FHA loans are for people who don't have 20%+ down payment. In that case, the FHA terms are superior to bank terms, because banks charge more in PMI than the FHA does in mortgage insurance. Since you're comparing an FHA loan to a bank loan with no PMI, you're not doing an apples-to-apples comparison. That's why the terms look so bad.
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Jun 14, 2011 20:11
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Leperflesh posted:FHA loans are for people who don't have 20%+ down payment. In that case, the FHA terms are superior to bank terms, because banks charge more in PMI than the FHA does in mortgage insurance. Not anymore, FHA PMI (called MIP) is at 1.15 (1.1 for >5% down) AND they tack on 1% to the loan. The main advantage to an FHA is higher DTI limits. I believe it's around 53-55%. You also can get an FHA at prime rates 3 years after a foreclosure.
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Jun 14, 2011 20:48
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Leperflesh posted:FHA loans are for people who don't have 20%+ down payment. In that case, the FHA terms are superior to bank terms, because banks charge more in PMI than the FHA does in mortgage insurance. It depends. You just need to find a lender that will do 5% down. There are plenty of them out there. FHA has recently really cranked up their PMI charges. If you can swing 5% down a bank loan with PMI may be better. With traditional monthly PMI I was quoted .85% a year, FHA was 1% at for the MIP and then .9% at the time I believe. I ended up finding a lender that did single payment PMI with is 1% at closing and then nothing monthly which is clearly superior to FHA 1% at closing (or financed) and 1.15% year for at least five years.
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Jun 14, 2011 20:50
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Realjones posted:It depends. You just need to find a lender that will do 5% down. There are plenty of them out there. FHA has recently really cranked up their PMI charges. If you can swing 5% down a bank loan with PMI may be better. With traditional monthly PMI I was quoted .85% a year, FHA was 1% at for the MIP and then .9% at the time I believe. We were going for that exact same conventional mortgage, but 5/3 did not like my wifes and mine second incomes (part-time professors) and disallowed it all. Taking $35k of our income out of the equation. Had to do FHA since I already own a home and the DTI got pushed. Payment went up about $125 and no matter how much I pay it down I will be paying the MIP for 5 years unless I refi. 
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Jun 14, 2011 20:57
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Hm, it sounds like they've really changed the insurance structure on those FHA loans. That's a shame (I guess), I got a much better deal than that.
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Jun 14, 2011 22:32
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I sold the house that I bought in January 2001 last January. Wanted to sell because of the divorce - the extra money going out for child support payments was making it hard to make ends meet, plus there were a lot of memories in the house that I just wanted to get away from. I ended up making about $75 on the house (I was an idiot and cashed out equity once or twice in the years that I owned the place) but hey, at least I walked away with something. Now I'm renting a tiny apartment for $300 less than my mortgage payment. I can walk to work, which is great, but I live in a college town and a lot of my neighbors and younger and pretty inconsiderate. Plus there's all kinds of things that I'd love to change about the place, starting with my lovely appliances and lack of a washer/dryer. Houses carry a lot of financial risks, but I will say that there is something great about *owning* something of your own and being able to do (nearly) what you please with it. Right now renting makes sense for me, and hopefully once I'm out of debt and alimony payments are gone I can afford a house again. I'm looking at 2+ years out, and (not so) secretly I'm hoping that the housing market stays in the toilet for a long, long time.
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Jun 14, 2011 22:59
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ZippySLC posted:Houses carry a lot of financial risks, but I will say that there is something great about *owning* something of your own and being able to do (nearly) what you please with it. I think that's the whole point of this thread. There are benefits to owning a house, they are just seldom financial. Especially for the demographic reading this forum.
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Jun 15, 2011 20:12
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Leperflesh posted:Hm, it sounds like they've really changed the insurance structure on those FHA loans. That's a shame (I guess), I got a much better deal than that. The real pisser is that when I first got quoted on it with my mortgage guy it was at .90% and when I went to pull the trigger (1.5 weeks later) it jumped .25%!
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Jun 15, 2011 20:57
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I still can't wrap my head around PMI removal. I owe about 130,000 on a townhouse. According to a request estimate from BofA, if I put in another 8,000 I will have hit the 80% LTV ratio for Removal Consideration. However, I am sure the property has decreased in the value by about 30k since I purchase it, and PMI Removal requires an appraisal. Does a new appraised value affect the LTV?
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Jun 17, 2011 22:44
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CatchrNdRy posted:I still can't wrap my head around PMI removal. It is almost always based on the original purchase price of the property. Homeowners Protection Act of 1998 posted:For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.
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Jun 17, 2011 23:00
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