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PageMaster posted:Anyone have any experience with receivership sales that can tell me why they're a bad idea? A home we were looking at turned out to be a receivership home, and I'm told there could be an opportunity for a good deal, but I don't trust that it's not going to be a giant headache or going to throw us under a bus in some way. House is in good shape and realtor says we're probably looking at a lot of red tape and potentially very long closing time, but if which wouldn't hurt us at all. It's definitely jurisdiction dependent as there are issues Mr tronic alluded to above. You should be getting a decent discount for that risk, and unlike bog standard detached single family homes with no hoa you definitely need to engage a lawyer to explain that risk to you. Real estate lawyer is who you need.
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Nov 5, 2020 05:23
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Motronic posted:I'm just gonna mention the very first thing: they are sold as in where is and you can't even get title insurance. So you may end up "buying" something in foreclosure and then find out later that a bunch of people have valid claims on the title that hadn't been filed yet. H110Hawk posted:It's definitely jurisdiction dependent as there are issues Mr tronic alluded to above. You should be getting a decent discount for that risk, and unlike bog standard detached single family homes with no hoa you definitely need to engage a lawyer to explain that risk to you. Real estate lawyer is who you need. Good enough for me, much appreciated!
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Nov 5, 2020 06:11
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PageMaster posted:Good enough for me, much appreciated! I don't mean to totally turn you off from it, if it's already empty and otherwise in good repair (scope the sewer) you might find out that it's easy to wash those claims against your title through whatever bankruptcy proceedings and newspaper postings your county has. You might find that you may never know and that roof looks awfully new and oh god.
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Nov 5, 2020 07:10
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H110Hawk posted:I don't mean to totally turn you off from it, if it's already empty and otherwise in good repair (scope the sewer) you might find out that it's easy to wash those claims against your title through whatever bankruptcy proceedings and newspaper postings your county has. To be honest I don't love the place enough to take on any extra risk and would prefer to just have a 'simple' streamlined closing and move; it sounds like it was my dream home or an incredible steal it might be worth the effort but you pointed out some things I didn't even think of that made me a little more confident about moving on post this one.
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Nov 5, 2020 07:34
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PageMaster posted:To be honest I don't love the place enough to take on any extra risk and would prefer to just have a 'simple' streamlined closing and move; it sounds like it was my dream home or an incredible steal it might be worth the effort but you pointed out some things I didn't even think of that made me a little more confident about moving on post this one. Foreclosures aren't the type of things you get into for a "simple" or "streamlined" transaction. It's not even going to have a predictable timeline. This is why the vast vast majority of these go to flippers and/or developers who can deal with the unknowns and spread out the risk because they're buying these things on the regular, not concentrating all of their risk onto one property. If the people who do this commercially aren't after that place already there's something so wrong with it that it has negative value.
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Nov 5, 2020 17:18
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This is Sad With Money in addition to being Bad With Money so I decided to post it here - the poster child of "don't buy a house with someone you aren't married to without a contract in place and both parties on the title." As written this person was a Tenant with benefits as far as the housing situation goes and has just been evicted. Name doesn't appear to be on the title. Just get married already, or spend a few grand on a lawyer. https://www.reddit.com/r/legaladvice/comments/jp6r2f/ca_came_home_from_work_to_find_my_fianc%C3%A8_of_6/ quote:So I got home yesterday from work to find a note on the TV saying I have 60 days to vacate the property. We bought the house in 2011 but it’s under her name. The thing that hurts the most is that she stole most of my 25 year record collection. I know I’ll have to get over the relationship but how do I go about getting the things she stole from me? I’ve bern paying half the mortgage for 11 years. Please help
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Nov 7, 2020 01:09
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H110Hawk posted:This is Sad With Money in addition to being Bad With Money so I decided to post it here - the poster child of "don't buy a house with someone you aren't married to without a contract in place and both parties on the title." As written this person was a Tenant with benefits as far as the housing situation goes and has just been evicted. Name doesn't appear to be on the title. Just get married already, or spend a few grand on a lawyer. Sad, but not bad. This LAOP doesn't seem to have been screwed on the house front - they don't appear to have paid a down payment and they've paid half a mortgage for their rent for 11 years. That's not a bad deal. The bad deal is the theft of personal property. This person is sad, but aside from their record collection they can walk away. The problem with an unmarried couple both being on the title is that nobody can just walk away. Even if they draw up a contract they still have to transfer the property. Andy Dufresne fucked around with this message at 03:57 on Nov 7, 2020 |
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Nov 7, 2020 03:54
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We just finished selling our house this morning, signed the paperwork and turned over the keys. The buyers paid cash which was nice and simple, and before we all walked out of there they showed us on their phone how they paid for the house: a picture of a winning scratch-off lottery ticket for $4mil. Didn’t expect that.
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Nov 11, 2020 18:33
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nice for them.
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Nov 11, 2020 19:48
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Man if they nitpicked anything I'd be a little annoyed
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Nov 11, 2020 20:59
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Associate Christ
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other people posted:Man if they nitpicked anything I'd be a little annoyed They were quite the perfect buyers, never a peep. I guess not having to worry about money can make you pretty chill. Best part is the guy still works third shift because he is super close to retiring and wanted to see it through.
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Nov 11, 2020 23:15
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Hopefully they do better than the lottery winners who brought property from a relative of mine. They won enough to buy a bunch of acreage and all the new toys that go with it (trucks, ATVs, etc), but put it back on the market within 3 years because they burned through their windfall.
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Nov 11, 2020 23:42
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Some unfortunately high number of winners are broke within a couple years.
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Nov 11, 2020 23:47
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Unfortunately, showing a stranger that you just had a 2-3 million dollar windfall is not a good start.
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Nov 11, 2020 23:58
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We are going to check out a house on Friday (rural NS). Price is a bit higher than I'd like ($400k) and I cannot get a feel for it based on the pictures. My partner really likes it, I hope I do to because I don't want that divide on my hands. Any tips for a first time home buyer? The place we're living in now we bought from one of my partner's family members for next to nothing, so I didn't really get the full experience.
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Nov 12, 2020 00:12
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Hi thread, first time coop buyer here. We're in the market for a one-bedroom between 350 and 400k here in NYC. I have 9 months to make this happen (as my lease will be up at that point, and I don't want to renew it). My wife and I make a combined 88k per year, have good credit, and we have more than enough savings for a 20% down payment within that price range. I'm told the coop board approval process normally takes 2-3 months, but is now taking around 4 because everyone is working remotely. My questions are: 1. Any pitfalls to look out for in the coop market particularly? 2. How often do maintenance fees usually increase? Can I see the history of these fees over, say, the past ten years for a given building? 3. What do I need in terms of reference letters for the coop board? Is it two professional and personal letters for each of us (8 total), or 1 each (4 total)? 4. Once we get pre-approval, is that good for 60 days or 90? I've heard different things from different people about this. 5. Is there any reason not to choose a fixed-rate mortgage? Everyone seems to be pushing us in that direction over variable. What are the pros and cons of each? 6. We found a broker we really like, and she told us we can use her for to "co-broker" a place that's not listed by her company. Does doing this cost us anything extra? 7. If we buy in, and then the market continues its recent downward trend here in the city, can we renegotiate with the bank to lower our mortgage payments somehow since our stock in the cooperative will have devalued? If so, how does that work? 8. What happens to us if the cooperative is doing really badly financially? How does the board protect our financial interests? 30yo unpaid intern fucked around with this message at 00:32 on Nov 12, 2020 |
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Nov 12, 2020 00:29
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H110Hawk posted:This is Sad With Money in addition to being Bad With Money so I decided to post it here - the poster child of "don't buy a house with someone you aren't married to without a contract in place and both parties on the title." As written this person was a Tenant with benefits as far as the housing situation goes and has just been evicted. Name doesn't appear to be on the title. Just get married already, or spend a few grand on a lawyer. I once dated a girl who inherited her grandmothers house when she was 19. Her boyfriend at the time was like 25 and moved in with her. They came up with some kind of weird agreement where she sold half the house to him, so they "co-owned" it or whatever. Then in a shocking twist you did not see coming, they broke up. She decided that what made the most sense was for her to move out, because sure why not, and there he stayed, in his ex's dead grandmothers house. This was about 12 years ago...he still lives there. She still owns half. His current wife and children now also live there. In his ex's dead grandmothers house, that his ex still half owns. People are loving Bad With Money and Life.
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Nov 12, 2020 00:47
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Xguard86 posted:Some unfortunately high number of winners are broke within a couple years. Buying a house in cash seems like a good way to spend the money before you go broke though
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Nov 12, 2020 01:00
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Andy Dufresne posted:Unfortunately, showing a stranger that you just had a 2-3 million dollar windfall is not a good start. Particularly a stranger who knows where you live. And who knows the house inside and out. And who probably still has a key (if you're dumb enough not to re-key minutes after the deed is recorded).
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Nov 12, 2020 01:04
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Hadlock posted:Buying a house in cash seems like a good way to spend the money before you go broke though Depends on area and if/when you run out of funds to cover maintenance/repairs/property taxes.
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Nov 12, 2020 01:48
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30yo unpaid intern posted:7. If we buy in, and then the market continues its recent downward trend here in the city, can we renegotiate with the bank to lower our mortgage payments somehow since our stock in the cooperative will have devalued? If so, how does that work? This is a pretty fundamental thing that you must understand: In this transaction, you are the investor taking on all of the risk. The bank is merely funding your transaction. You are purchasing your share at the price you negotiate. Period. The simultaneous transaction is that you are borrowing that money from someone else and using the share you purchased as collateral for that loan. Substitute coop/share language for "house" or "apartment" and it's the same thing.
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Nov 12, 2020 04:11
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30yo unpaid intern posted:7. If we buy in, and then the market continues its recent downward trend here in the city, can we renegotiate with the bank to lower our mortgage payments somehow since our stock in the cooperative will have devalued? If so, how does that work?
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Nov 12, 2020 04:22
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People already dealt with 7 so:30yo unpaid intern posted:
variable rate mortgages are generally used when they have lower interest rate than fixed rates and you think you will either sell or refinance before the initial period is done or if you think that interest rates will go down. Right now unless you have a super specific financial situation, fixed is probably the way to go because it is unlikely that interest rates will go lower. quote:
You're screwed. That is why part of buying into a condo or co-op is looking into the financials of the place you're buying into. Are they putting money away into a reserve? Will they be able to cover foreseable expenses? A co-op can be foreclosed on and shareholders evicted. And even if it doesn't get that bad (which almost never does), a co-op in a bad financial situation will drive prices down because people will try to stay away. joepinetree fucked around with this message at 19:51 on Nov 12, 2020 |
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Nov 12, 2020 18:51
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30yo unpaid intern posted:Hi thread, first time coop buyer here. We're in the market for a one-bedroom between 350 and 400k here in NYC. I have 9 months to make this happen (as my lease will be up at that point, and I don't want to renew it). My wife and I make a combined 88k per year, have good credit, and we have more than enough savings for a 20% down payment within that price range. I'm told the coop board approval process normally takes 2-3 months, but is now taking around 4 because everyone is working remotely. A coop is largely similar to a condo but there are some important differences. The biggest one is that you need approval to sell. Related to this is flip taxes, so in the future you could need to sell, moving for a new job, got married, etc, and the board can say 5% of your purchase price goes to the reserves as a tax, and no one who buys can work for a hospital or the city government because, and just randomly deny buyers without saying the reason and all you can do is wait, paying your dues and mortgage every month. Understanding the rules the coop uses, and to an extent making sure the owners have similar goals is important here. You don't actually own real estate, you own a share in a corp, subject to the corps rules. Financing works differently, usually costs more overall and you need a higher down payment(and the coop rules can require a higher down payment). And the whole building is owned by the coop. They can tell you what color carpet you can have. They can pass some more restrictive rules that would not be legal in a coop. They can tell you aren't allowed to fix a leaky toilet yourself or with any random plumber, and they will go through their vendor, but you are responsible for 100% of the cost. Another major difference is most coops have a large common mortgage, a portion of your dues go towards paying this every month, it is basically like having a big deficit in your reserves with a loan. In theory if this is not paid the whole building could be foreclosed on, even if you paid your dues, but that has never actually happened. You should factor that in when you analyze the financials. If you ever plan on having kids, get a 1 bedroom with a den or office, you can use it as a nursery/bedroom instead of using your living room. Often the coop fees are much lower than a two bedroom. 2 In an ideal world the fees would follow inflation, the reserves would be funded to start, the budget would be based on a realistic expectation of expenses. The monthly fees are not necessarily the same thing as the coop budget, or what is actually spent. If fees are not increasing most years it is a red flag that the reserves are underfunded. If fees are a lot less than similar buildings that is a red flag that fees are just too low and not funding the reserves, or the reserve study isn't including all the expenses(ignoring plumbing is common), or the estimates are way off, and in the end a special assessment or large fee increase is likely. And if the dues in a building are much more, it is probably not permanent, they could be repaying a loan, or saving for a particular expense like elevators or roof, but they could also have a big deficit before they go back to normal. In practice most places don't have a 100% funded reserve, anything over 50% is probably fine even if not ideal. But you are expected to get an attorney or tax preparer to review the financials in NYC, and often your agent can ask for a copy of the financials and basic rules before making an offer. 3 It is whatever is in the coop rules, and really whatever the coop board wants. 4, the rate on a preapproval means nothing, it can change wildly until you are locked in. 5, In an extreme case, where interest rates rise significantly and you stay there forever an ARM could become prohibitively expensive forcing you to sell. So a fixed rate provides stability. But in practice the ARM is just a lower cost overall for most, you get 5-7 years before the rate even starts to go up, most people don't stay long enough that it would matter if rates go up, you save a sizeable amount during the first 5-7. It isn't a given that in 5-7 years the rates will go up. If you plan on living there less than ~10 years, or you are financially capable of paying down the mortgage faster the risk of an ARM is lower. On the other hand 30 year mortgage rates are basically at an all time low, they probably will go up over time. 6, Generally there are no costs to the buyer regardless of what home you buy, the listing agent is paid from the seller/sellers broker when the home closes. It is also more common in NYC(and most other high cost markets) not to sign an exclusivity agreement with a buyers agent. If your agent tries to get you to pay some other fee you should just say no or interview new agents. You could probably even find a "full service" agent that will rebate something when you close, like $1000 or .5%. 7, no. Effectively you take on all of the risk when you buy a home, not the bank or anyone else. If you are upside down you are just upside down, you are responsible for the entire loan except if you go bankrupt, or you sell and the bank agrees to a short sale, or deed in lieu of foreclosure. All of these are bad for your credit. And with the down payment it is more likely you just lose most of your down payment but the bank is fine. 8, if the coop is broke or makes poor financial decisions they will raise the dues and issue special assessments, and it can mean needed repairs don't happen until both they collect this money, and you get homeowners to volunteer for the unpleasant task of trying to collect this money and potentially foreclosing on neighbors. You need to make sure to elect good people to the board, and don't buy a coop that is in financial distress
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Nov 12, 2020 19:44
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Man our home purchase was going butter smooth till about a week and a half to close and then our underwriters and loan coordinator turned incompetent and it turned into a poo poo show. We had to resend all the same documentation about 3 times, frequently a day after we just sent it, terrible to non existent communication... so aggravating. We finally sign everything tomorrow and close Monday, wonder how else this is going to gently caress up. Hoping the mail loses everything  
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Nov 13, 2020 03:29
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Mr. Crow posted:Man our home purchase was going butter smooth till about a week and a half to close and then our underwriters and loan coordinator
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Nov 13, 2020 03:31
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Accurate.
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Nov 13, 2020 03:33
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Mr. Crow posted:Accurate. I hope you aren't being sarcastic, because H110 wasn't and it's just the truth. This isn't an industry that attracts the best nor the brightest. Every deal seems like it's the first time they ever gone through this procedure and even if it's someone "good" (read financially successful) they are so busy they don't give a gently caress so it's still the first time they opened your folder. There is really little money to be made in customer service or repeat business. Motronic fucked around with this message at 04:04 on Nov 13, 2020 |
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Nov 13, 2020 04:01
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Motronic posted:There is really little money to be made in customer service or repeat business. I think this probably drives a lot of it. Nobody's going back to the same lender / servicer because they did such a good job last time; they're going to the best deal even if it's Crazy Larry's Loan Emporium, because it's all getting sold off to someone else the moment it closes anyway, so gently caress it. Lending standards may be weird as gently caress now (someone gave my sister-in-law an 8X gross mortgage when her income was from owning a small business and not even wage-safe), but the lender still has the buyer bent over a barrel anyway, so whatever from their perspective.
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Nov 13, 2020 04:35
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Mine went OK for the SFBA - but keep in mind closing here needs to typically happen in 21 days.
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Nov 13, 2020 08:09
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Mr. Crow posted:Man our home purchase was going butter smooth till about a week and a half to close and then our underwriters and loan coordinator turned incompetent and it turned into a poo poo show. We had to resend all the same documentation about 3 times, frequently a day after we just sent it, terrible to non existent communication... so aggravating. We finally sign everything tomorrow and close Monday, wonder how else this is going to gently caress up. Hoping the mail loses everything LITERALLY the same documentation? Or updated copies of paystubs/bank statements? Because right now, lenders are going ape poo poo over Covid job losses. They'll continually demand to see new paystubs and bank statements as often as they can until the loan closes. In any case, like everyone else said, they didn't TURN incompetent. They were always incompetent, they just took a while to show you. Sundae posted:I think this probably drives a lot of it. Nobody's going back to the same lender / servicer because they did such a good job last time; they're going to the best deal even if it's Crazy Larry's Loan Emporium, because it's all getting sold off to someone else the moment it closes anyway, so gently caress it. Lending standards may be weird as gently caress now (someone gave my sister-in-law an 8X gross mortgage when her income was from owning a small business and not even wage-safe), but the lender still has the buyer bent over a barrel anyway, so whatever from their perspective. We actually reached out to our original broker because he got us such a good deal the first time around. He proceeded to talk down to us, tell us that he was so inundated with requests that nobody's rate is going to ever be lower than 3%, and that we're stupid to even think of refinancing and that his deal was the best we were going to see. We closed at 2.615% for only a few hundred more in closing costs with some online lender, and like 2 weeks before closing we got an e-mail from the broker asking us if we were still interested in refinancing. DaveSauce fucked around with this message at 13:21 on Nov 13, 2020 |
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Nov 13, 2020 13:19
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Thanks to the folks who said to use redfin. Smooth process here. Now time to move in. Yikes!
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Nov 13, 2020 14:14
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Welcome to getting a mortgage sadly. It sucks. RUSH RUSH RUSH to get them the paperwork they request. When I got a mortgage the first time (Everything was paper) I bought a scanner and labeled everything they asked for really well because I assumed they'd ask for it again (they did for several things). This made it easy to just re-print what I scanned in Even doing my next one online it kind of sucked, I was asked to submit stuff they forgot to ask about or needed, and had to rush around while they drug their feet. My current home (3rd mortgage) went mostly smooth, they were being quiet about the appraisal etc for awhile and my fiancee (first mortgage for her) was very anxious about not hearing back, I had to advise her it's just how that whole poo poo-show goes, and we'll close when we close (and as we get closer to our apartment move out date we'd need to push harder)
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Nov 13, 2020 14:19
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In my experience the reason they ask for everything again is because they (think they) need the absolute most recent statements as of the day or so before closing, and it's easier to just ask for everything than it is to look through each statement they have to determine if there's a more recent version. My Vanguard account only issues quarterly statements and unfortunately it almost delayed my closing because they kept insisting i send a more recent statement that didn't exist. In the end a screenshot was fine.
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Nov 13, 2020 15:50
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Andy Dufresne posted:My Vanguard account only issues quarterly statements and unfortunately it almost delayed my closing because they kept insisting i send a more recent statement that didn't exist. In the end a screenshot was fine. this happened to me with betterment.
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Nov 13, 2020 17:24
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Less of an issue with many jobs being work-from-home during COVID, but if you have to go into the office for work during a mortgage application, bring your personal laptop with you that contains all the documentation files/scans. Also, it should have a password manager on it with credentials for all your bank accounts. Then, when the LO hits you up with an email at 11AM requesting something, you can forward it immediately instead of killing that day by responding once you get back home. As to the incompetence, I blame cocaine.
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Nov 13, 2020 18:13
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Our lender has a portal where it lists our accounts and we can upload the newest statements as they roll in. No guarantee that they won't also ask for documents in a rush right at close, of course, but it seems like a good system. Fingers crossed our appraisal comes in high. Meanwhile packing for Phase 1 of our move is ongoing. Has anyone ITT had experience selling during the pandemic? I'm not super squeamish about having strangers in my home, but I'm not super excited about the prospect of getting calls during the week that people want to see our place and having to vacate with our cat and also somehow work? We rented an AirBNB so the agent could do two open houses the first weekend and hoping to God we get offers so we don't have to deal with that poo poo Thanksgiving week.
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Nov 13, 2020 18:41
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B-Nasty posted:As to the incompetence, I blame lack of cocaine.
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Nov 13, 2020 19:50
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Chad Sexington posted:Our lender has a portal where it lists our accounts and we can upload the newest statements as they roll in. No guarantee that they won't also ask for documents in a rush right at close, of course, but it seems like a good system. Fingers crossed our appraisal comes in high. We evacuated our house between 9am and 8pm for the weekend it was on the market, knowing it would be showings all day. Stayed with family. Especially with a baby, it's not realistic to be in and out or even to keep the house in showing condition if there's any kind of interest.
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Nov 13, 2020 21:14
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DaveSauce posted:LITERALLY the same documentation? Or updated copies of paystubs/bank statements? Literally the same documentation. Paystubs are one thing but we had to send e.g. the well agreement like 5 times. Nothing ever changed. Also all the documention we submitted to our loan officer somehow didnt get sent to our loan coordinator so we had to reupload all that information as well. Our loan officer did end up catching covid so i felt bad about that and it explains her disappearance, but in pretty confident our coordinator was / is incompetent. She frequently misspelled my last name, frequently emailed the wrong address, was the one primarily asking for the same documents over and over etc. Mr. Crow fucked around with this message at 21:56 on Nov 13, 2020 |
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Nov 13, 2020 21:54
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