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No one knows if rates are going up or down. Realtors have veen saying that rates are going up for years and they were wrong 80% of the time
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Mar 9, 2017 18:26
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| # ? May 30, 2024 22:25 |
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The FED is signaling it will raise interest rates repeatedly this year. However, mortgage rates are loosely coupled at best, and are much more reactive to home buying activity than they are to the general interest rate picture.
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Mar 9, 2017 18:33
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Yes that's the rational sober long term advice, great points. It's still a bad idea to not lock in now because rates will be higher in June than they are now. That's just gonna be what happens, it's not that bold of a prediction.
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Mar 9, 2017 20:26
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Pryor on Fire posted:Yes that's the rational sober long term advice, great points. It's still a bad idea to not lock in now because rates will be higher in June than they are now. That's just gonna be what happens, it's not that bold of a prediction. Except like he said, nobody is gonna lock in a rate for 4 months...
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Mar 9, 2017 21:40
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Well, both lenders I talked to actually will lock in the rate for an eighth over today's rate. So 3.5% instead of 3.375%. That's less of a jump than I expected, so I will lock for peace of mind. Now to sell equities to fund the down payment. Opened an Ally savings account so I can earn 1%.
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Mar 9, 2017 22:24
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Pryor on Fire posted:Yes that's the rational sober long term advice, great points. It's still a bad idea to not lock in now because rates will be higher in June than they are now. That's just gonna be what happens, it's not that bold of a prediction. Rate locks over such a long period often come at a price, of either a higher interest rate or simply additional cash (or both). You're basically predicting that interest rates will be higher enough in 3 months that the additional interest cost on his mortgage will exceed the cost of the rate lock, but that isn't necessarily the case; if interest rates only increase by 0.125% then the rate lock is a waste of time, and it's also possible for rates to dip some
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Mar 9, 2017 22:28
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Large Hardon Collider posted:Well, both lenders I talked to actually will lock in the rate for an eighth over today's rate. So 3.5% instead of 3.375%. That's less of a jump than I expected, so I will lock for peace of mind. Not bad, nice work.
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Mar 9, 2017 22:35
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So is Ally the best savings account? I'm wanting to open an account because screw WF interest rates. E: Sorry, I thought this was a different finance thread. If it helps the accounts gonna be to save down payment dollars. Rolo fucked around with this message at 22:58 on Mar 9, 2017 |
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Mar 9, 2017 22:55
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lampey posted:There are two main types of foreclosed homes, reo, and auction on the court steps. Rel estate owned is what happens after no one bids higher than the bank at a tax auction, or when the bank forecloses on the home and there is no auction. In most ways it is similar to a normal home for sale. The bank wants as much money as possible and to sell as quick as possible. Generally they are less willing to do repairs and they are often exempt from disclosing any problems, they wouldnt know about them anyways. It also takes a little longer to close usually. The homes are usually not in great condition or else the previous owner would not have been foreclosed on, but they may still have the utilities on so you can inspect more easily. There are a lot more of this type for sale. Elephanthead posted:The home needs to be in livable condition or you won't be able to get a normal mortgage. There are construction mortgages but they have fees and they will want you to use licensed contractors and other things. I think if it is a newer 1999 built home you probably won't have many code issues. Thank you guys, appreciate it. I mentioned what I said about the possibility of foreclosed homes in my original and how far away from it I was to someone and they said something along the lines of "you also have to be careful about the fact the previous owner can jump in at anytime and you're left having lost some money" is this true if the house has been foreclosed on? I would assume that once a foreclosure happens it's completely open for sale. Is what she said true, and if so to what extent? It sounds like one of those things that could be technically true under certain very unlikely circumstances. Is this what pre-foreclosure is?
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Mar 12, 2017 00:23
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5 RING SHRIMP posted:Thank you guys, appreciate it. If the house is completely foreclosed the old owner is free to bid along side you, but their odds of winning are pretty low. If it is in any state other than completely foreclosed/bank owned then the property owner could magically come up with all the cash to satisfy the bank or a short-sale buyer willing to pay the bank off. My parents have bought several sketchy houses at tax auctions in front of the courthouse. Do not do this unless you enjoy to-the-studs renovation as a DIY project. Their homes came with all the previous occupants trash, including a fridge of food, no electric meter (remember that fridge of food?), and locked out water.
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Mar 12, 2017 00:35
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5 RING SHRIMP posted:Thank you guys, appreciate it. There's the possibility that the foreclosure paperwork was misfiled or erroneous in some way, in which case the title is cloudy as gently caress. Apparently homes that were foreclosed on during the mortgage crisis are more likely to be in this state. Naturally, at an auction you're not going to get to review any of that stuff We were in escrow on a foreclosure once and encountered exactly the above; the foreclosure paperwork was filed after some date that a judge said the foreclosure had to be filed by, and our real estate attorney told us to run as far away as we could because this made the title cloudy
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Mar 12, 2017 00:43
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If you buy at home at the county tax auction in MI the old owner has 6 months to redeem it. You would get any money spent on the house back, and you should wait until the period is over before spending money repairing the home. The redemption period varies by state and not all foreclosures have a redemption period. There can be other title issues though. Tax auctions generally clear all other liens, but other types of foreclosure can still have liens owed
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Mar 12, 2017 00:48
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Turns out that type of house I'd been looking out are mostly "Horizontal Property Regimes", a complex ownership structure in which the owner only owns the land under the foundation and a 3rd party legal organization owns the surrounding land, which is shared with other nearby homeowners. I'm bothered by this, does anyone have experience with detached homes that in a situation like this? Apparently all these houses are like this because it's a legal way to subdivide larger lots without going through actual splitting of existing lots. The end result is higher density without the consent of neighborhood homeowners, which I'm not too worried about. I just see this as even more risk because it's like the worst of condo ownership combined with the worst of detached single family homeownership. Here's one of the better summaries of the structure I've seen: http://info.rochfordlawyers.com/resources/real-estate-title/horizontal-property-regimes-hprs-nashville
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Mar 12, 2017 06:30
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Twerk from Home posted:Turns out that type of house I'd been looking out are mostly "Horizontal Property Regimes", a complex ownership structure in which the owner only owns the land under the foundation and a 3rd party legal organization owns the surrounding land, which is shared with other nearby homeowners. I'm bothered by this, does anyone have experience with detached homes that in a situation like this? Apparently all these houses are like this because it's a legal way to subdivide larger lots without going through actual splitting of existing lots. The end result is higher density without the consent of neighborhood homeowners, which I'm not too worried about. I just see this as even more risk because it's like the worst of condo ownership combined with the worst of detached single family homeownership. Ever seen a really old cartoon or sitcom where there was some misunderstanding about where property lines were, so neighbors would purposely mark off delineations in inconvenient ways or challenge the most basic point of contention just to be dicks? Yeah, imagine that but with multiple neighbors doing it all at once and with little recourse in terms of going to court about it.
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Mar 12, 2017 16:19
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Twerk from Home posted:Turns out that type of house I'd been looking out are mostly "Horizontal Property Regimes", a complex ownership structure in which the owner only owns the land under the foundation and a 3rd party legal organization owns the surrounding land, which is shared with other nearby homeowners. I'm bothered by this, does anyone have experience with detached homes that in a situation like this? Apparently all these houses are like this because it's a legal way to subdivide larger lots without going through actual splitting of existing lots. The end result is higher density without the consent of neighborhood homeowners, which I'm not too worried about. I just see this as even more risk because it's like the worst of condo ownership combined with the worst of detached single family homeownership. It's basically a condo but with two detached structures. Enjoy your HOA meeting with your idiot neighbor, no way to have tie-splitting votes, and their dog pooping up against your house where they then leave it because it's communal property and you can't pass a bylaw to prevent it.
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Mar 12, 2017 18:19
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gently caress that. Renting it is, I guess. I can't afford a place that isn't an HPR where I'd like to be. I wish they had just subdivided the lots, 25' wide lots are fine!
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Mar 12, 2017 19:34
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That sounds like a bunch of bored old white people getting annoyed with how much the state limits their ability to control their HOA neighbors, so they invented an even worse structure to get the control they actually want. Also a backdoor way to just sort of slumlord the gently caress out of whatever lots you own.
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Mar 12, 2017 20:03
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Pryor on Fire posted:That sounds like a bunch of bored old white people getting annoyed with how much the state limits their ability to control their HOA neighbors, so they invented an even worse structure to get the control they actually want. Does it count as slumlording if you're selling them to yuppies for $450k? Almost all of the homes under $600k in this area are these HPRs, with no lot ownership and fully detached buildings that are legally condos: https://www.redfin.com/zipcode/37209/filter/sort=lo-dollarsqft,min-beds=3,viewport=36.18689:36.11967:-86.80463:-86.92719
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Mar 13, 2017 01:13
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Interesting... why is Nashville blowing up so much?
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Mar 13, 2017 01:22
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Pryor on Fire posted:Interesting... why is Nashville blowing up so much? Same story as any other city? Tech jobs, people want to live close and not in the burbs if possible, and it's really hard to build new housing stock close in because of zoning / NIMBY / anti-development laws. All of the demand pressure for new housing is getting vented through whatever stupid legal loophole works, which in Nashville is these HPRs where you've got huge numbers of detached buildings that are condos for legal purposes. I'm seeing a bunch of 4-packs too, where a single lot has been subdivided into 4:  It just sucks to be in the group of targeted customers (victims?) of these, who wants to not be 30+ minutes away from downtown, wants / needs 3 bedrooms, and can afford $350k-500k but can't even consider the $600k-800k that normal single family homes are.
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Mar 13, 2017 05:38
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I don't think the HPRs are actively predatory, it's just the political will isn't there to do a blanket update of the zoning code and builders don't want to bother officially splitting lots because it takes months and you have to notify the neighbors and have a hearing and bullshit (someone actually did split a lot across the alley from me and I was getting mail about it from zoning for a while). But yeah, I was put off by it too and lucked into finding a normal house. I'm sure it's fine 90% of the time but that 10%... edit: I do think you could find a SFH meeting your criteria in the 4-500 range. Might take longer though. Ex https://www.redfin.com/TN/Nashville/5306-Tennessee-Ave-37209/home/87826404 https://www.redfin.com/TN/Nashville/4711-Michigan-Ave-37209/home/108084041 https://www.redfin.com/TN/Nashville/2351-Herman-St-37208/home/60694540 Thufir fucked around with this message at 16:42 on Mar 13, 2017 |
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Mar 13, 2017 16:31
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Also the current HPR rules are actually an improvement on they way it used to be, which was that you could build two units on the same lot as a duplex, but they had to be a single structure. So you would get weird designs of mostly-separate houses that slightly touched, and some of them were really weird:
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Mar 13, 2017 16:49
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I saw a house pop up on Redfin on Friday for 215k that was pretty good. Remodeled in 2013, really nice looking interior, wood floors, good location, etc. 1000 sq ft but it's kind of an expensive area. Across the street from a park, no less. Doesn't have a garage but, oh well. If I were actually serious about buying a house, I'd have called the realtor first thing Monday. Turns out, it really was a good deal because Redfin status just changed to pending. I don't know how you even finish inspections in that amount of time.
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Mar 13, 2017 18:13
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totalnewbie posted:I don't know how you even finish inspections in that amount of time. There can be all kinds of delay and inaccuracy in online postings, unless you are looking at the MLS directly, and even then there can be some lag. Also, I know a guy who was going to put his house on the market, but before he could even do that his Realtor found him an interested buyer, who went under contract on the house, but they still put it up on the market just in case, and it immediately went up as pending on all the sites. His case was actually pretty interesting because the buyer was actually already under contract with another house, which they broke, giving up their deposit money, because they wanted my friends house. Apparently the had "settled" on the other house as being the best they could find in the neighborhood, until my friend's house came along.
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Mar 13, 2017 18:43
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totalnewbie posted:I saw a house pop up on Redfin on Friday for 215k that was pretty good. Remodeled in 2013, really nice looking interior, wood floors, good location, etc. 1000 sq ft but it's kind of an expensive area. Across the street from a park, no less. Doesn't have a garage but, oh well. If I were actually serious about buying a house, I'd have called the realtor first thing Monday. Why would you need to finish inspections? Why would you even pay for an inspection unless you have an accepted offer? That's what an inspection contingency in the contract is for.
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Mar 13, 2017 18:45
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About how long after an accepted offer do inspections take place? I'm morbidly curious about the cracked walls in my house so I kinda want to be a fly on the wall during the inspection assuming it sells as fast as the realtor claims it will.
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Mar 13, 2017 18:47
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Problem! posted:About how long after an accepted offer do inspections take place? I'm morbidly curious about the cracked walls in my house so I kinda want to be a fly on the wall during the inspection assuming it sells as fast as the realtor claims it will. IIRC our contract had a defined window in which we could do our inspection, I think we had to have it down within 2 weeks of the offer being accepted or something like that.
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Mar 13, 2017 18:55
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Motronic posted:Why would you need to finish inspections? Why would you even pay for an inspection unless you have an accepted offer? That's what an inspection contingency in the contract is for. Oh right, that did always confused me about the inspections part of buying a house (how people could be so willing to pay so much for one).
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Mar 13, 2017 18:56
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totalnewbie posted:Oh right, that did always confused me about the inspections part of buying a house (how people could be so willing to pay so much for one). For an inspection? Because a competent one can steer you away from a house that has five figures (or more) worth of problems that you might not identify otherwise. When we bought both of our houses, I think we had a week after the offer was accepted to do the inspection. I know in some of the ridiculously hot housing markets right now, there are stories of homes selling for 150%-200% of asking price with zero contingencies.
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Mar 13, 2017 19:01
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totalnewbie posted:Oh right, that did always confused me about the inspections part of buying a house (how people could be so willing to pay so much for one). If the inspection finds something that you can live with but that would cost substantial money to fix, they can wind up paying for themselves in the form of seller's concessions. And a good inspector will give you suggestions on how soon things might need to be replaced, how often they should be maintained, how to identify maintenance problems that you as a new homeowner might not otherwise know how to find, etc If the inspection finds something that you can't live with then they've saved you like... hundreds of thousands of dollars Always get an inspection
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Mar 13, 2017 19:13
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And don't go with the financing company or home inspector recommended by your realtor. You want an impartial 3rd party.
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Mar 13, 2017 21:42
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Oh, I meant, I didn't know why people could pay so much for an inspection before putting in an offer on a house but it makes sense to do it after your offer is accepted but just have a clause in the offer for you to be able to back out 
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Mar 13, 2017 21:59
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Yes welcome to adulthood that's how buying a house works.
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Mar 13, 2017 22:16
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totalnewbie posted:Oh, I meant, I didn't know why people could pay so much for an inspection before putting in an offer on a house but it makes sense to do it after your offer is accepted but just have a clause in the offer for you to be able to back out Lots of markets basically require you to waive inspection clause, thus - pre inspections. So if you're house hunting, you can expect to plunk down several hundred for each potential offer.
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Mar 13, 2017 23:53
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Drunk Tomato posted:Lots of markets basically require you to waive inspection clause, thus - pre inspections. So if you're house hunting, you can expect to plunk down several hundred for each potential offer. That's shady as gently caress.
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Mar 14, 2017 01:16
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In my city there's a company very well-regarded for their inspections, so sellers will often provide one from them. That's what my PO did, and the inspector friend I asked said there was no point having it reinspected because the company was top notch and cared about their rep.
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Mar 14, 2017 01:19
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Put an above asking price offer in with escalation on a place and got beat out by two cash offers that were above even our escalation ceiling. It's crazy to me that this is the case on a home above $500K. This market sucks rear end.
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Mar 14, 2017 15:35
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totalnewbie posted:That's shady as gently caress. It's not the sellers being shady but there being some other potential buyers out there who are eager/dumb enough to make and offer without that contingency. If you're the seller, why would you accept a weaker offer with a higher risk (inspection comes back negative, they back out, now you have to disclose problems to future buyers!) unless they were willing to pay a premium?
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Mar 14, 2017 17:26
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Skipping the inspection seems to be increasingly common here in Colorado. All the "Googler" fuckheads buying the places don't care, they will just tear the house down and build a new monstrosity anyway.
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Mar 14, 2017 17:33
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The last two places I bought I didn't even have a financing contingency (though the second one was unusual). The place I sold didn't have a financing contingency either, and that actually caused some problems for the purchasers.
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Mar 14, 2017 17:33
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