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Insane Totoro posted:So this is what the seller's realtor just sent to me: "As is" is a very different kind of transaction than one in which both parties are mutually negotiating, though sometimes people with properties marked "as is" will still decide to negotiate ultimately. You still may have options with getting a home warranty on existing conditions, but not having the option to negotiate for repairs as part of the home purchase so you can have everything in working order can really suck if that's what you were hoping to do. If they made the claim of "as is" after the offer was accepted that's not a great sign. They obviously are trying to get out of paying any money at all but how you want to follow up on that is another matter. Basically, waiting until an offer has been accepted and then flat-out claiming the house is being sold "as is" is, to be blunt, a pretty dick move. I Love You! fucked around with this message at 23:45 on Mar 30, 2013 |
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Mar 30, 2013 23:38
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Jose Valasquez posted:So it's for people who are really bad at math. It's also for people with bad credit and no disposable savings who can't afford to just drop $1k on a new water heater.
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Mar 31, 2013 00:50
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QuarkJets posted:It's also for people with bad credit and no disposable savings who can't afford to just drop $1k on a new water heater. AKA "people who should not buy homes"
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Mar 31, 2013 01:27
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Spamtron7000 posted:AKA "people who should not buy homes" Well, the bad credit bit implies that they didn't buy the house recently. Not everyone who's a home owner is in their 20s or early 30s, after all.
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Mar 31, 2013 01:32
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I Love You! posted:Basically, waiting until an offer has been accepted and then flat-out claiming the house is being sold "as is" is, to be blunt, a pretty dick move.
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Mar 31, 2013 02:00
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10-8 posted:It's also probably a breach of the offer contract. Every offer contract I've ever seen states clearly whether the offer is for the property "as is" or not. Basically I went back and told them $187k up front, no weird language, no shenanigans, take it or leave it.
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Mar 31, 2013 02:04
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ntd posted:Some people rent water heaters from the utility company, not sure why, but I have seen it occasionally as I've looked at places, haven't seen a rented furnace before though. Water heater along has typically been listed at 25. Are you sure they are renting one? It doesn't seem likely. Why would they install a device that can't be repo'd easily? A TV can be grabbed and carried out while a water heater requires a trained tech come out and mess with plumbing, gas and electricity. I know that Utility companies will often sell things like heat pumps and water heaters. Since the cost and installation can be two or three grand, they will offer financing with payments as low as 25 dollars added to your bill. They also place a lien on your home. To the uninformed, that may appear to be a 'rental'.
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Mar 31, 2013 04:42
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When applying for your mortgage, do you need to disclose information such as a PayPal account or Amazon Payments account? It just occurred to me that I would have money on my main checking account coming in from those accounts. I'm guessing they just assume it's eBay sales or something and don't really bother to look into it further than that? Like hey, what's that extra $250ish in income about every month... Guess I'm just super worried right now and thinking about everything too much. We did talk to Chase, who can see all our transactions when applying for a mortgage since our Checking/Savings is with them, and I guess they didn't even mention it and we were pre-approved with them. Not like we have any debt or anything like that. Just super worried about everything going smoothly that this thought came to me at 4am  And yeah, not going with Chase either before anybody rags on me, but they are super conservative too.
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Mar 31, 2013 09:13
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Astro7x posted:When applying for your mortgage, do you need to disclose information such as a PayPal account or Amazon Payments account? It just occurred to me that I would have money on my main checking account coming in from those accounts. I'm guessing they just assume it's eBay sales or something and don't really bother to look into it further than that? Like hey, what's that extra $250ish in income about every month... Shouldn't be a problem at that income amount, you wouldn't need to disclose it. If you had a particularly large sale ($1k+ depending on your income) we might ask for the source of the deposit. As long as you don't need the funds for the loan transaction it shouldn't be a huge deal. If you actually need the funds for your closing it's more problematic since documenting sale of personal assets as acceptable funds is a huge pain in the rear end, but if you're only making $250/month from selling poo poo on eBay or whatever and you're not using it as qualifying income no one will care enough to ask about it.
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Mar 31, 2013 16:59
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Lyesh posted:Well, the bad credit bit implies that they didn't buy the house recently. Not everyone who's a home owner is in their 20s or early 30s, after all. If you can't afford like $800 (a more realistic number) for a new water heater plus installation, how are you going to afford a new roof? Or to paint any part of your house? Or a window? I mean, I get that there are plenty of people who own homes who inherited them, or who bought decades ago for a fraction of the current price, etc. but just basic maintenance on a run-down pre-manufactured house in a depressed area of the country is still going to include occasional $500 to $1000 costs. But this is a rhetorical question and I'm not actually surprised at all. The types of situations where poor people have to pay more to get stuff the middle class can just buy outright are legion. Randomly posted:Why would they install a device that can't be repo'd easily? The utility company can probably just shut off service if an account goes delinquent. I'm sure the payments are rolled right into the monthly utility bill. It's probably a lot like renting your cable or satellite box from your TV provider. They don't actually expect to get the thing back if you stop paying, but they'll be happy to charge you an exorbitant fee for breaking your contract and another fee for not paying your bill on time and another fee for sending the account to collections.
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Mar 31, 2013 20:48
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Welp, found a house we love. Time to drop a shitton of money on a house that's way too big for just the two of us. e: pros: it's big enough for us to live in indefinitely, so at least we'll have some retirement assets at some point WhiskeyJuvenile fucked around with this message at 05:33 on Apr 1, 2013 |
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Apr 1, 2013 05:12
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Baruch Obamawitz posted:Welp, found a house we love. Time to drop a shitton of money on a house that's way too big for just the two of us. Wooo, grats You ignored the ONE rule of the thread, great job! I Love You! fucked around with this message at 06:03 on Apr 1, 2013 |
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Apr 1, 2013 05:46
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So my wife and I found an amazing house. It was a foreclosure for roughly half the price of what it was worth. As a foreclosure it did need some work New roof New Siding Gutters(or we can leave them off Windows Floors in some rooms Appliances Patch/Paint interior walls My math(and some estimates I have recieved) have put it at ~60k to get this all finished(probably a bit less, since I can do a most of the "internal" things myself). Unfortunately, when it came time to put in the offer, no matter how much I finagled, I could not get a 203k loan without adding the contingency that "I must sell my current house first because it has an FHA mortgage on it". Note, this was not because of income requirements, I can afford both mortgages, but rather because of the FHA note on it. As such, I wasn't able to bid. Here's where the story gets tricky. When I first looked at the house, during research, I was able to find the phone number for the next door neighbor. I called him and had a great convo with him. I called him after I was unable to find a way to finance the purchase and he says "Well how about I buy the house for cash, and lease it to own to you". I've never done a transaction like this, but was intrigued. He bought and has since closed on the home. Here's where the questions start coming in: How do we make this equitable for both of us. Let's say the house is worth ~500k. It was purchased for roughly half that price. Who should be responsible for doing/paying "all the work" given that it is a "lease to own" plan? If me, how do we factor the value of "my expenses" into the lease? What happens if after a year, I decide to bail out(and not buy?)? do I lose all that money? Should it be valued at some amount? What other things am I not thinking of. Also, yes this is a repost from the legal thread, where the general sentiment is "run the gently caress away".
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Apr 1, 2013 20:38
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lord1234 posted:So my wife and I found an amazing house. It was a foreclosure for roughly half the price of what it was worth. As a foreclosure it did need some work Oh my god
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Apr 1, 2013 20:43
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Is that an an April Fool's post?
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Apr 1, 2013 20:45
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I Love You! posted:Oh my god Well ahh I don't think you need one lawyer, I think you may need a whole firm.
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Apr 1, 2013 20:46
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lord1234 posted:Also, yes this is a repost from the legal thread, where the general sentiment is "run the gently caress away". That's good advice. If you really want to do this, the neighbor pretty much needs to directly lend you the money to buy the house, effectively becoming your mortgage lender. Alternatively, you could write up a contract as an X-year lease term with a call option for you within the lease term, having a call price of what the neighbor is buying it for plus Y% interest/year, and free reign to make any and all alterations to the house. Essentially, if you call your option within the lease and buy the house, you keep the improvements, otherwise he does... you can structure the deal however you like, but structure it with a lawyer. Securitizing real estate, what could go wrong?
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Apr 1, 2013 20:48
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I see no problem with that transaction. Go for it
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Apr 1, 2013 20:55
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baquerd posted:Alternatively, you could write up a contract as an X-year lease term with a call option for you within the lease term, having a call price of what the neighbor is buying it for plus Y% interest/year, and free reign to make any and all alterations to the house. Essentially, if you call your option within the lease and buy the house, you keep the improvements, otherwise he does... you can structure the deal however you like, but structure it with a lawyer. This is sort of how a lease to own works. However, given that I am putting money into the home, I want to not take 100% of the risk if for some reason I choose to walk away, so as such, I'd like to figure out some way to "value" my input.
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Apr 1, 2013 20:58
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lord1234 posted:Also, yes this is a repost from the legal thread, where the general sentiment is "run the gently caress away". There's a very good reason for that.
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Apr 1, 2013 21:00
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lord1234 posted:Here's where the questions start coming in: How do we make this equitable for both of us. Let's say the house is worth ~500k. It was purchased for roughly half that price. Who should be responsible for doing/paying "all the work" given that it is a "lease to own" plan? If me, how do we factor the value of "my expenses" into the lease? What happens if after a year, I decide to bail out(and not buy?)? do I lose all that money? Should it be valued at some amount? What other things am I not thinking of. There are two sane scenarios here. 1. You walk away from all this craziness, find financing for a new home purchase, find and buy a different home. This involves the least risk. 2. You rent this house from the man who owns it. He is responsible for upkeep and improvements, and you pay him an agreed-upon rental rate and get a lease contract drawn up and all that jazz. There is no possible way that you spending $60k+ to improve a house that you do not own ends well.
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Apr 1, 2013 21:02
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If he paid cash you could always just do your mortgage through him. Not a great idea but better than some crazy lease option imo.
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Apr 1, 2013 21:04
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lord1234 posted:This is sort of how a lease to own works. However, given that I am putting money into the home, I want to not take 100% of the risk if for some reason I choose to walk away, so as such, I'd like to figure out some way to "value" my input. You don't take 100% of the risk because he's already risked a significant amount of money buying the place. Even if you fix it halfway up and then walk, he still has a fixer upper just sitting there that he has to pay property taxes on and try to move. If anything, giving you the option to buy at a fixed, pre-determined price is generous even with a fixed time limit. You can ultimately structure the deal however you like, but if you're not the owner from the start there's always going to be a risk that he'll just ignore the deal and force you to court. quote:There is no possible way that you spending $60k+ to improve a house that you do not own ends well. If you have a fixed price buy option on the property, I don't see why it has to end in tears. Doesn't make it the best idea, but if everyone sticks to an agreed contract there's no reason it can't go well.
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Apr 1, 2013 21:12
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Okay, so what exactly is so bad about Chase Bank for getting your mortgage? We are between a couple lenders right now, and our real estate agent and our attorney have said that Chase has given their clients tons of problems in the past. Then I talk to people that have used them such as my boss, and he said they were fine with them. My agent's issue with them is that they are slow, and they are really conservative in giving loans. Our attorney has also said that he has seen deals fall through with Chase more often than not, and then they have to go through another lender quickly. On the flip side, everything ultimately comes down to the rate it seems, and Chase is really eager to get our business. Like... really going above and beyond what the other lenders are offering. -Chase will match any rate that we get in writing through a GFE from another lender. -Chase will credit us back $1,500 at the time of closing -WIll give us 1% back on our mortgage payment (approx $3,000 over the course of the loan) I guess all the positive things we have going for us so far that might cause them to react this way are: -We have zero debt. -We are planning on putting 30% down on a $240K home, still keeping another 30K in an emergency fund. -Me and my wife both have had steady employment for the past 4 year (we're only 28) -We have awesome credit. -We have been told we are buying a home well within our means by many lendors. -Our closing date is 75 days away right now. Now... are the people that are getting denied by Chase the ones that are just not in this situation. Because I realize people are more often to go write a bad review if they had a bad experience, and a lot of reviews I read talk about crazy poo poo like 'I lost my job and they denied me the loan right before closing'. Honestly the only difference is that I found another lender that will do the appraisal at cost, and I'm honestly wondering if Chase will do the same if I just ask for it because that's how eager they seem.
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Apr 2, 2013 05:43
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The biggest complaint I've seen routinely with Chase is their speed. Typically lenders shoot to close in about 30 days, give or take depending on circumstances. Chase would have to be pants-on-head slow to not get it done in 75. As far as comparing different lender's offers, I'd highly recommend picking up a book or two written by Carolyn Warren. Lenders intentionally complicate things in order to hide hidden fees and inflated commissions. Banks are just as bad as the rest in this regard. Carolyn does a good job of breaking down which fees are justified and which are bunk, and how to speak with lenders to sort through the BS. I've seen people do a great job on negotiating down the price of their home only to wind up effectively paying 5%+ more than they needed to because of smoke and hand-waving from the lender.
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Apr 2, 2013 05:57
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Spamtron7000 posted:AKA "people who should not buy homes" Could be that they had good credit at one time, aka pre-mortgage bubble popping. Or maybe they inherited the house. Either way, rentable water heaters are not just for people who can't do math
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Apr 2, 2013 07:49
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Last week we made an offer on a townhouse in the NE Massachusetts. It was accepted within 24 hours and I had the inspection done last Friday. We locked in our rate at 4.25% and signed all our paperwork on Saturday. We should be closing on May 3rd. Is it normal for the Seller to be there during the inspection? That was kinda awkward.
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Apr 2, 2013 11:17
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Astro7x posted:Chase is really eager to get our business. Like... really going above and beyond what the other lenders are offering. Just make sure you are comparing apples to apples. As flowers mentioned a lot of lenders are pretty good at moving numbers around to make things seems cheaper than they are. You need to understand the rate/points combo, the origination fee, and all other fees and whether they are coming from the lender or are the lender's estimate of someone else's fee. Good places to compare rates are mtgprofessor.com, penfed.org, usaa.com because they are pretty clear about what they offer. Price title insurance at entitledirect.com.
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Apr 2, 2013 15:56
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Astro7x posted:Okay, so what exactly is so bad about Chase Bank for getting your mortgage? I'm going through Chase right now for the same extras you mentioned and am supposed to close tomorrow morning. The service from our agent has been great however they have been ridiculously slow. Originally we were going to ask for 30 days to close and Chase recommended asking for 45 days just to be safe saying that we should be able to close sooner. With 14 days left the only condition to close was for them to get the appraiser to change the purchase price down due to an addendum. It took 2 extension addendums and 11 extra days for them to get the appraiser to change the purchase price.
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Apr 2, 2013 16:00
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Pillowpants posted:Is it normal for the Seller to be there during the inspection? That was kinda awkward. You potentially lose some negotiation leverage in this case. If the Seller's aware of the potential faults and issues you may raise at the end of your option/inspection period, they have time to research up some alternatives and options. Normally the urgency of the moment works in your favor here. It's not all bad. Sometimes having the Seller at the inspection makes the issues more real to them, and makes them more open to accepting repair requests. The best thing I think you can do now is to schedule a call with your inspector to talk through any questions you felt uncomfortable asking in person since the Seller was there.
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Apr 2, 2013 16:11
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The seller certainly has the right to be present whenever anyone is on their property (or any other time). I think it's more likely they'll be there if any of their belongings are still in the house. HSF mentioned some of the drawbacks, but if you have a cooperative seller I suppose there could be one advantage; ordinarily, the inspector is not allowed to do certain things (any test that would be destructive, for example) but maybe the seller would give permission, if he's eager to please (and confident the results will be positive). But uh, probably not. Most sellers are worried (or should be) about the inspections, because this is where you're going to find your reasons to either demand concessions/fixes, or exercise your contingency and back out of the sale.
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Apr 2, 2013 18:33
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Leperflesh posted:The seller certainly has the right to be present whenever anyone is on their property (or any other time). I think it's more likely they'll be there if any of their belongings are still in the house "Oh, there was a leak there 4 years ago but we fixed it, no problem." "Yeah my wife's new job starts next month, we have our new house under contract and everything" When the Seller is there, it's probably just a lack of communication (from the agents) and ignorance (from the Buyer and Seller) that lead to it. If the Seller is concerned about people they don't know in their home, one solution is to have the listing agent or their assistant at the property on the Seller's behalf. The listing agent can stay out of the way of the inspection and typically they just work on their phone or laptop in a room the others aren't in. Leperflesh posted:But uh, probably not. Most sellers are worried (or should be) about the inspections, because this is where you're going to find your reasons to either demand concessions/fixes, or exercise your contingency and back out of the sale. A Seller can expect to pay about 3x more for something that comes up on the Buyer's inspection compared to if they caught it before listing. The reason is because you will not have time to shop around for the best options and contractors, and they will charge you a premium if you need the work completed in advance of closing. There will be no time for DIY repairs even on little things when you're packing up to move out of the home, and probably in a purchasing transaction of your own for your next home. Being able to say your home has been "Pre-Inspected, Inspector Certified, Move-In-Ready" and so on helps you to attract value-buyers rather than bargain hunters. It is the best $300 or $400 you can spend when preparing to sell your home.
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Apr 2, 2013 19:18
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slap me silly posted:Just make sure you are comparing apples to apples. As flowers mentioned a lot of lenders are pretty good at moving numbers around to make things seems cheaper than they are. You need to understand the rate/points combo, the origination fee, and all other fees and whether they are coming from the lender or are the lender's estimate of someone else's fee. Good places to compare rates are mtgprofessor.com, penfed.org, usaa.com because they are pretty clear about what they offer. Price title insurance at entitledirect.com. I totally understand. From what I've read, and what other lenders have told me, the only things that can really very are -Application Fee/Appraisal -Origination Fee -Cost of Points -The Rate Eveything else on the GFE is standard according to the property's value, right? Either way, I'm comparing multiple GFEs, and they are fairly close. Chase charged a higher fee for the appraisal, and an origination fee which was 150 more. But... they just called me back today and said that the loan has finished through underwriting and has been approved under a condition of providing my two most recent paystubs upon ordering the appraisal. On top of that, they said they would credit us back $2,400 + we'd get back $3,000 over the course of the loan. So okay, how much is their credits really worth if they indeed have a higher interest rate? Not even factoring in points here.... A loan of $182,000 @ 3.75% 60 day lock would be $303,433 for the house total paid with interest and loan repayment. -$3000 in the 1% back -$2400 in closing costs credits =$298,033.00 So if we were able to get a loan below Chases rate at 3.605 for example, that would be a total cost over the loan of 298,067.75, effectively making their closing cost credits a wash. So it looks like a .15% difference in rate will make up for that $5,400 which we'd get back through them. Even though they said they'd match another bank's rate. Then there is also the gamble of if we wait another month will the 30 day lock still be what it is now, or will the 30 day rate go up and end up being what the 60 day rate is now anyway. Blah.
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Apr 2, 2013 21:14
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.25% to .5% interest reduction is usually worth one point, or 1% of the loan. Lenders vary in what it costs based upon various factors. Most mortgages don't survive to maturity.
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Apr 2, 2013 21:27
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Unfortunately the easiest numbers to get (APR and total cost over 30 years) are kind of useless for comparing loans, because you will most likely not have the loan for 30 years. They should be happy to show you their full rate/points schedule. Poking around a bit, I'd say that's a relatively high rate right now and therefore they are happy to pay you some money to take it. Amerisave is offering something like 3.75% at a $3000 rebate, for example. Whether it's a good deal depends on the details. How long will you hold the mortgage? Do you have extra cash to trade for a lower rate? By the way, that weird $3000 bonus thing is actually going to be $100 per year that you have the mortgage, right? So probably more like $500-1500 in total, not to mention that it's worth less because it's future payments. So don't be adding it in with everything else like that. Better maybe to estimate an equivalent interest rate reduction - which is scribblescribble 0.005% ish at the beginning, so this is like a 3.7% loan? Also. They can "match another bank's rate" all day long but it's meaningless unless they also keep the points and fees fixed.
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Apr 2, 2013 22:54
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All great advice and stuff to consider. Yes, it's 1% back every month over the loan, so you're right I shouldn't factor it in like that. But I was told its on principal and interest, so it would be consistent over the loan. So how the hell can you even compare a rate? Seems like you'd have to pay for several lenders to actually do the appraisal, do the underwriting, and approve you for the loan before its a rate you can truly lock in and can then compare, correct? That seems costly and time consuming. I'm willing to do the work, but hesitant that I will actually benefit from it
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Apr 3, 2013 00:11
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You just assume the appraisal and underwriting will work out  To compare, all you need to know is rate, points, fees for a particular loan amount and purchase price. Most lender sites should also ask for location of house, purpose of house, credit rating to get an accurate quote. Ideally you need to get all the info from everybody on the same day because the wholesale rates change daily.
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Apr 3, 2013 00:40
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So there's another potential house we are looking at tomorrow. It's 145.9 so 10 grand more than the other house. BUT, it seems like the sellers are getting desperate, saying on their ad that there's no bidding wars and they are open to offers. I'm willing to say 138 because I don't want to go any higher. Should I say firm, or should I start lower and maybe "settle" for 138 if they accept it?
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Apr 3, 2013 01:38
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After moving in, we received a letter from the gas company stating that our gas lines in our house are our responsibility (theyre responsible up to the home itself), but they offer insurance to cover it if anything went wrong. It is 4.99 per month. Is it worth it?
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Apr 3, 2013 02:32
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No. Borderline scam if you ask me. They do that poo poo here too, and the phone company will do it for the phone lines. Seriously, how much do you think a gas line repair is going to cost, a million dollars? You don't need insurance, just your emergency fund.
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Apr 3, 2013 02:53
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