|
Deranged Milkman posted:I found a foreclosed house owned by Fannie Mae that looks absolutely perfect for me. There is one major with the house, the roof on the rear porch failed and there is water damage that caused the ceiling to fall in one spot. No real loss, its only a porch and it was ugly wood that was due to go anyway. However, my financial guy is saying that without this issue being fixed the house most likely won't get an OK from an appraiser. Since there is no chance Fannie Mae will fix this issue what are my options? I know they recently did away with their homepath program that would have made this simple. I don't expect to find any other major issues with the house, however I don't want to get a home inspection and appraisal done to find out I won't be able to get a mortgage because of the porch roof. I'm really not seeing any way to make this work, are there any other options I have?
|
#
?
Nov 25, 2014 04:22
|
|
|
|
| # ? May 31, 2024 22:41 |
|
|
What adorai said. Any type of loan should allow you to escrow the cost to cure. An inspector will certify the repair is done and release the pay to the contractor. You will have to use a real contractor though not DIY.
|
|
#
?
Nov 25, 2014 15:12
|
|
|
Welp, wife and I just managed to score a lot in the bay area for a surprisingly reasonable price. We got ridiculously loving lucky. We're going to be building a prefab on it, probably a bluhome. Will do a trip report along the way.
|
|
#
?
Nov 26, 2014 23:32
|
|
|
Elephanthead posted:What adorai said. Any type of loan should allow you to escrow the cost to cure. An inspector will certify the repair is done and release the pay to the contractor. You will have to use a real contractor though not DIY. I asked about this and you were right, they can do an "escrow holdback" to cover the repairs. In other less than exciting news I had a second showing and brought a contractor and he noted that the roof needed to be replaced ASAP and that there were signs of water damage. My agent recommended offering 10K less than what is being asked for the house and then bring up the roof once the inspection is complete. She thinks Fannie Mae will knock more money off due to the roof at that stage. The whole concept rubs me the wrong way, I'm taking a gamble that Fannie Mae would be willing to move on the price once we have an agreement on the price. If they don't do it I'll have to walk on the house and be out the inspection and any other fees I've racked up getting to that stage. Does it sound like I'm getting fed a line by my realtor or is this a legitimate strategy?
|
|
#
?
Dec 2, 2014 03:16
|
|
|
nebby posted:Welp, wife and I just managed to score a lot in the bay area for a surprisingly reasonable price. We got ridiculously loving lucky. We're going to be building a prefab on it, probably a bluhome. Will do a trip report along the way. I hate you. Have you checked out any of their model homes or open houses, or been to the factory?
|
|
#
?
Dec 2, 2014 03:20
|
|
|
Steve French posted:I hate you. Have you checked out any of their model homes or open houses, or been to the factory?
|
|
#
?
Dec 2, 2014 06:03
|
|
|
nebby posted:Welp, wife and I just managed to score a lot in the bay area for a surprisingly reasonable price. We got ridiculously loving lucky. We're going to be building a prefab on it, probably a bluhome. Will do a trip report along the way. Mind sharing the other manufacturers you considered? I spent a few nights looking in to prefab builders and never found anything close to as nice as Blu.
|
|
#
?
Dec 2, 2014 11:53
|
|
|
Deranged Milkman posted:My agent recommended offering 10K less than what is being asked for the house and then bring up the roof once the inspection is complete. She thinks Fannie Mae will knock more money off due to the roof at that stage. The whole concept rubs me the wrong way, I'm taking a gamble that Fannie Mae would be willing to move on the price once we have an agreement on the price. I would almost be tempted to knock 10k off whatever you think is a good price, and ask them to replace the roof before you move in. Edit: Just got on a computer rather than phone... Yes, your realtor is asking them to negotiate once, then renegotiate once the inspection is done. That's dumb. Maybe your offer should say something like "Take 10k off, Fannie Mae replaces the roof, and fix any other issues the inspection comes up with." Spermy Smurf fucked around with this message at 13:45 on Dec 2, 2014 |
|
#
?
Dec 2, 2014 12:38
|
|
|
Deranged Milkman posted:I asked about this and you were right, they can do an "escrow holdback" to cover the repairs. Don't let the cost of inspections hold you back. If something is looking stickier than you want to deal with, then you should walk. You paid your hundreds in inspections for piece of mind, and you got that.
|
|
#
?
Dec 2, 2014 13:01
|
|
|
Tricky Ed posted:Mind sharing the other manufacturers you considered? I spent a few nights looking in to prefab builders and never found anything close to as nice as Blu.
|
|
#
?
Dec 2, 2014 19:01
|
|
|
Spermy Smurf posted:
I would negotiate the money, not the repairs. You want the repairs done correctly, not at the lowest possible cost by a seller protecting their pocketbook. In some sense it does indeed make sense to renegotiate the offer pending the inspection because the roof is just one symptom of the disease of maintenance neglect and you're very likely going to find some other significant problems, and once the seller knows you are serious you may be in a better position to negotiate at the end of diligence. I would come in very low on your initial offer, like 12% depending upon comps - it's impossible to evaluate what 10k means without knowing the ask - and during your diligence period obtain estimates on all of the necessary repair work, then come back to the seller with those dollar figures padded by a significant amount to reflect your risk and hassle with performing the repairs. Buying a problem house is a great opportunity for you to get a deal, but the reason you deserve a great deal is because you're taking an unattractive problem house that needs expensive repairs off the seller's hands.
|
|
#
?
Dec 2, 2014 22:04
|
|
|
Deranged Milkman posted:I asked about this and you were right, they can do an "escrow holdback" to cover the repairs. It may or may not be a legitimate strategy depending upon who you are dealing with, but your realtor is always going to suggest the thing that gets you under contract and financially/psychologically invested in closing the deal so he/she can get paid. couldcareless posted:Don't let the cost of inspections hold you back. If something is looking stickier than you want to deal with, then you should walk. You paid your hundreds in inspections for piece of mind, and you got that. This, you do not want to be emotionally married to a problem house. Your realtor is likely to cajole you once you are under contract, because he/she wants to close the deal, but you need to be very firm with your limits and willing to walk away if/when it gets worse than the roof during inspection and they aren't willing to make generous concessions to fix everything. BEHOLD: MY CAPE fucked around with this message at 22:09 on Dec 2, 2014 |
|
#
?
Dec 2, 2014 22:06
|
|
|
In all my years the only scum of the earth worse than realtors that I've found are job recruiters. You have to understand that the primary concern with both are to make the deal happen, put the peg in the hole and then you get paid. Nothing else matters. They still can of course be good and be useful but just understand that 90% of humans care only about whatever gets them paid more often, so anyone who is paid based off the peg getting in the hole is probably not looking out for you but just trying to get the peg into the hole. Goddamn don't get me started on recruiters though, they uniquely manage to screw both sides of the agreement over time after time while have no long term stake in anyone or anything, they are a special kind of psychotic madman. Put the peg in the hole by any means necessary, then move on.
|
|
#
?
Dec 3, 2014 02:44
|
|
|
BEHOLD: MY CAPE posted:It may or may not be a legitimate strategy depending upon who you are dealing with, but your realtor is always going to suggest the thing that gets you under contract and financially/psychologically invested in closing the deal so he/she can get paid. Thanks, I needed that reality check. From what I have read online her strategy of negotiating after the offer has been made seems dubious at best and is most likely just to get me under contract. It seems like my best bet would be to get a quote and itemize all the repairs that are needed and send them an offer with the repairs taken into account. If they won't move on the price despite these estimates I should walk away.
|
|
#
?
Dec 4, 2014 02:57
|
|
|
Deranged Milkman posted:Thanks, I needed that reality check. From what I have read online her strategy of negotiating after the offer has been made seems dubious at best and is most likely just to get me under contract.
|
|
#
?
Dec 4, 2014 03:17
|
|
|
Haha, what a clusterfuck. So as I mentioned we had a seller accept our offer for a lot. We contracted bluhomes to come give us a design assessment. So bluhomes shows up at the lot, and happens to run into the listing agent, who tells them they are at the wrong lot. Long story short the listing agent *listed the wrong loving lot* on MLS and so our contract ended up having in part the wrong information and we didn't buy the lot we thought we did, that one was sold, we were under contract for the lot across the street. Holy gently caress. After going through the design review with bluhomes it sounded like we were about to get hosed on the site prep charges, due to the lot we thought we had being too sloped. The lot we *actually* were under contract for was even steeper. Additionally the zoning was going to prevent us from building the home we wanted. So before this spiraled out of control I pulled the trigger on backing out and we terminated the contract today. gently caress houses.
|
|
#
?
Dec 4, 2014 04:57
|
|
|
nebby posted:Welp, wife and I just managed to score a lot in the bay area for a surprisingly reasonable price. We got ridiculously loving lucky. We're going to be building a prefab on it, probably a bluhome. Will do a trip report along the way. nebby posted:Haha, what a clusterfuck. So as I mentioned we had a seller accept our offer for a lot. We contracted bluhomes to come give us a design assessment. So bluhomes shows up at the lot, and happens to run into the listing agent, who tells them they are at the wrong lot. Long story short the listing agent *listed the wrong loving lot* on MLS and so our contract ended up having in part the wrong information and we didn't buy the lot we thought we did, that one was sold, we were under contract for the lot across the street. Holy gently caress. Please add these quotes to the OP. Do never buy and do never build 
|
|
#
?
Dec 4, 2014 05:02
|
|
|
nebby posted:Haha, what a clusterfuck. So as I mentioned we had a seller accept our offer for a lot. We contracted bluhomes to come give us a design assessment. So bluhomes shows up at the lot, and happens to run into the listing agent, who tells them they are at the wrong lot. Long story short the listing agent *listed the wrong loving lot* on MLS and so our contract ended up having in part the wrong information and we didn't buy the lot we thought we did, that one was sold, we were under contract for the lot across the street. Holy gently caress. Did you get your earnest money and stuff back?
|
|
#
?
Dec 4, 2014 06:16
|
|
|
That is amazing. I hope the realtor is eating all of the costs for inspections, rate locks, and all that other poo poo.
|
|
#
?
Dec 4, 2014 14:14
|
|
|
Hahaha no way realtors are teflon.
|
|
#
?
Dec 4, 2014 19:37
|
|
|
Pryor on Fire posted:Hahaha no way realtors are teflon. Petition to change thread title to "House Buying Megathread: Realtors are Scum"
|
|
#
?
Dec 4, 2014 21:43
|
|
|
Spermy Smurf posted:That is amazing. I hope the realtor is eating all of the costs for inspections, rate locks, and all that other poo poo. At this stage if it was all initial look and feel stuff going on, there really shouldn't have been any money changing hands that couldn't be refunded (earnest money). Since it was the wrong place listed that gets refunded no questions asked at this point.
|
|
#
?
Dec 4, 2014 22:08
|
|
|
A little irritated. The house we bought has a water softener system that is completely DOA. Had a tech come out and look at it, and the inner workings are all rusted out, the tank is a rusted mass of metal, and the system itself is obsolete. Replacement? At least $5,000. It isn't covered under the home warranty because its a "pre-existing loss". Is that a reasonable cost for a water softening system?
|
|
#
?
Dec 4, 2014 23:08
|
|
|
No, that's pretty far beyond a reasonable cost. I think a lower end system should run you $500-$1000.
|
|
#
?
Dec 4, 2014 23:32
|
|
|
Jastiger posted:A little irritated. The house we bought has a water softener system that is completely DOA. Had a tech come out and look at it, and the inner workings are all rusted out, the tank is a rusted mass of metal, and the system itself is obsolete. Get 2 more bids. And it's quite possible you could DIY it, the one my folks had looked pretty drat simple to DIY. My parents paid a bit over $10k (including tax) for a whole house softener in 2000, in Vegas. 3200sqft, 4br, 3 adults and 2 children occupied it, and it had a pool - no idea if that factored into sizing - the unit was big. That was the cheapest of 3 bids also.
|
|
#
?
Dec 4, 2014 23:53
|
|
|
SiGmA_X posted:You didn't know that before moving in? Bad inspection. Lol. Shocking. When I read the post, before looking at the poster my thought was "sounds like something that Jastiger moron would gently caress up." Welp.
|
|
#
?
Dec 5, 2014 00:58
|
|
|
Spermy Smurf posted:That is amazing. I hope the realtor is eating all of the costs for inspections, rate locks, and all that other poo poo.
|
|
#
?
Dec 5, 2014 01:08
|
|
|
Bloody Queef posted:When I read the post, before looking at the poster my thought was "sounds like something that Jastiger moron would gently caress up." Bah screw you  We took it apart during the inspection and it looked old, but not busted. It has full salt in the bin and everything. It wasn't until an actual tech came out to turn it on for us that we found out its broken. I don't think its reasonable to expect every inspector to be able to completely dismantle proprietary hardware for water softeners. Zhentar posted:No, that's pretty far beyond a reasonable cost. I think a lower end system should run you $500-$1000. Ah that is much more reasonable. Any brands in particular I should look for?
|
|
#
?
Dec 5, 2014 20:27
|
|
|
So we're trying to buy a lot, and there has been a lot of issues with it, but most recently the Title Commitment. From what I understand the Title Commitment should lay out what needs to be done before the final policy is given, things like, switch deeds, pay off liens, pay delinquent taxes, etc. The one we have has all of that, but does not have liens or paying off delinquent taxes (and there are both on the property). Our realtor thinks we are crazy for wanting this, and the title company finally offered to put the lien release as a condition but will not put the delinquent taxes. Am I being crazy here? I assume the title company will do the correct thing and make sure it's all paid off, but why is it such a hassle to have that as part of the commitment?
|
|
#
?
Dec 5, 2014 22:45
|
|
|
MrEnigma posted:Am I being crazy here? At least one person is being crazy here. I can't tell if it's you or not. It sounds like your realtor thinks you are crazy for wanting title insurance, and your title insurer is reluctant to insure against anything, neither of which makes much sense.
|
|
#
?
Dec 6, 2014 00:34
|
|
|
Zhentar posted:At least one person is being crazy here. I can't tell if it's you or not. It sounds like your realtor thinks you are crazy for wanting title insurance, and your title insurer is reluctant to insure against anything, neither of which makes much sense. Well title insurance is required here (Wisconsin), and then they provide us the commitment. They will insure it and have told me the items we have exceptions with will come off, but my realtor didn't really try to even do make sure that was in writing. Talked to the title company after the previous post, and the guy said he could reissue the title commitment with those pieces on it, after the woman I talked to right before that said I couldn't.... So confused. From everything I can read it's pretty standard to have the title commitment have items that need to be done before the final policy is issued (including liens, deed transfer, taxes, etc). But it's been a fight for over a week to even get my realtor to acknowledge what I am trying to do. The buying contract has a provision to allow refuting title items, which we did, and now the sellers side has 5 days to do it, so it got them moving. Do never buy. MrEnigma fucked around with this message at 01:04 on Dec 6, 2014 |
|
#
?
Dec 6, 2014 01:02
|
|
|
MrEnigma posted:Am I being crazy here? You're not being crazy, I always order title insurance and get a survey. If you bought that property and someone else had a claim to that piece of land, you could have a fight on your hands, but how would you know without a title search from the title company? Also, title insurance can sometimes uncover some crazy poo poo.
|
|
#
?
Dec 6, 2014 01:14
|
|
|
Guacala posted:You're not being crazy, I always order title insurance and get a survey. If you bought that property and someone else had a claim to that piece of land, you could have a fight on your hands, but how would you know without a title search from the title company? Also, title insurance can sometimes uncover some crazy poo poo. The title insurance itself is not specifically the issue, but the exceptions/requirements on it. The title insurance came back with 2 liens and delinquent taxes on it (liens to be expected, taxes a bit annoying). So we requested the title company add to requirements section that the liens be removed and the taxes are paid before the policy takes effect (there are already a bunch of other requirements, like the title company be paid, warranty deed signed, etc -- this is pretty standard). The realtor and the title company contact both told us that's now how the policies work, that they will get the items in question taken off before closing, and we shouldn't worry about it. I today (after about a week) finally got to an underwriter at the title company and he called back and basically said it shouldn't be a problem. So we are getting what we wanted, but they are making it seem like a huge task that we are asking that is way out of the normal way of doing business, when it seems that section of the title commitment (Section B Part 1) is specifically setup for that. As a word of warning, and a thing we now really regret, we found the vacant lot that we wanted, and then contacted the realtor that it was listed with, technically we have a separate agent in the same agency, but we thought it would not be a big deal and maybe help things out. It's been a huge mess, our realtor is definitely not looking out for our best interests, and not really working in good faith. It would have been the same cost to us to go get our own realtor, and they would be doing the work for me, instead of having the worst of both worlds (as in a realtor, and I have to still do all the leg work).
|
|
#
?
Dec 6, 2014 04:29
|
|
|
MrEnigma posted:As a word of warning, and a thing we now really regret, we found the vacant lot that we wanted, and then contacted the realtor that it was listed with, technically we have a separate agent in the same agency, but we thought it would not be a big deal and maybe help things out. It's been a huge mess, our realtor is definitely not looking out for our best interests, and not really working in good faith. It would have been the same cost to us to go get our own realtor, and they would be doing the work for me, instead of having the worst of both worlds (as in a realtor, and I have to still do all the leg work). What is the agent doing/not doing that makes you think they're not working in good faith? I'm also confused about the added leg work you're performing - are you talking about negotiations, getting things lined up, etc?
|
|
#
?
Dec 6, 2014 04:59
|
|
|
Guacala posted:What is the agent doing/not doing that makes you think they're not working in good faith? I'm also confused about the added leg work you're performing - are you talking about negotiations, getting things lined up, etc? For the good faith portion, it might not be specifically good faith, but she's messed up a lot of items that I have keep asking her to fix. (Like sending me documents to sign with my name misspelled, and doing it again after asking her to fix it). Lots of little things like this, and just really poor communication (said she would give us a nice list of all the time deadlines from the contract, etc -- never did). For the addd legwork, I was specifically talking about this title commitment that we had issues with. Our realtor was really good about getting the amendment to the contract saying we had issues (although again she missed one of the issues I had sent her in email....), but then when we wanted her to try to get it dealt with from the title company, she basically said, this is not how it works (see previous post about the title commitment issues for more information) And then wanting me to clear our issues we had with the title to resolve it all. So after emailing her countless times about it, giving her specifics about it, I ended up having to go talk to multiple people at the title insurance place to figure it out. It's great we got it resolved, but sucks I had to do it, and my realtor basically told me I shouldn't care about it. I understand they want the closing to go quickly and not have much hassle, but often times it feels at the expense of us being expose to more risk in the deal.
|
|
#
?
Dec 6, 2014 06:02
|
|
|
If you're in southern Wisconsin, and this one falls through, you can PM me for a recommendation on a decent realtor.
|
|
#
?
Dec 6, 2014 07:12
|
|
|
I used to prepare REO closings for banks and one of my duties was clearing title of the issues you described. Everything you've done sounds completely reasonable to me.
|
|
#
?
Dec 6, 2014 16:22
|
|
|
Hotdog In A Hallway posted:I used to prepare REO closings for banks and one of my duties was clearing title of the issues you described. Thanks, we are not getting financing for the lot, so all the protection the bank does (make sure liens are removed, insurability, etc) are apparently things we have to watch out for ourselves now. Financing has an interesting effect that the bank goes to bat for you, since if they end up owning it, they want it to be correct.
|
|
#
?
Dec 6, 2014 19:53
|
|
|
MrEnigma posted:Thanks, we are not getting financing for the lot, so all the protection the bank does (make sure liens are removed, insurability, etc) are apparently things we have to watch out for ourselves now. Financing has an interesting effect that the bank goes to bat for you, since if they end up owning it, they want it to be correct. To be fair, that is kind of the whole point of a title policy. If you buy a buyer's policy the title company will make sure any liens are paid as part of the closing disbursements. If other title issues come up later they are on the hook to cure it.
|
|
#
?
Dec 7, 2014 18:50
|
|
|
|
| # ? May 31, 2024 22:41 |
|
|
therobit posted:To be fair, that is kind of the whole point of a title policy. If you buy a buyer's policy the title company will make sure any liens are paid as part of the closing disbursements. If other title issues come up later they are on the hook to cure it. Yeah I get that, the current liens are in the exceptions section right now, which is fine, but I wanted wording adding to the requirements section that these liens would be removed before closing. Make its standard to trust that the title company will do it, but everything I read says the requirements section is supposed to have wording to have the lien exceptions removed when the title insurance is completed.
|
|
#
?
Dec 7, 2014 19:38
|
|