So, a client of mine has filed for Bankruptcy and is trying to short sell the home. Its a beautful house. They owe about 750, and the FMV is listed at about 535.
I'm really thinking about buying this house. They're not in foreclosure yet, but I was wondering if maybe I should wait till the house falls under foreclosure and maybe wait till the trustee sale date and make an offer? Would anyone see this as a better way to go or maybe just put in an offer on the short sale? If they short sale it, I was going to offer 475...
I'm planning to put down about 80K. I have about 63 in a money market that my parents opened up for me when I was born. I have some more savings and my parents are giving me another 15K. I wanna save some of the money to invest into the home and fix some things. I'm already pre-approved through my credit union for up to 500K, so at least thats there.
About the house: They took out a 2nd mortgage to fix up the yard. They spent about 160K on landscaping, a pond, the gazeebo, and a small deck where the jacuzzi is. They repaved the drive way. Put new garage doors. etc etc. 4 bedrooms, 3 baths, 2 car garage. I live with roommates now, but I've talked to all of them and they're willing to come with me and pay me rent.
My experience investigating short sales and foreclosures is that often they go for more than list. A house in my neighborhood was a short sale and had a 'bidding war', it went for ~10% over asking. Doesn't hurt to try, but don't count on being successful trying to lowball. There are plenty of people sitting in cash waiting for a deal.
/Mike
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Plus I would not count on the room mates to much. They probably will come with you but sooner or later may leave. You do not want to get into something and then if they back out/move out you are screwed. Better safe then sorry. If you can handle it without them good.
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My boss (attorney) actually represents these people in their Bankruptcy. So I was actually just going to stay on top of the court proceedings and find out when the actual trustee sale date is. Then maybe I can bid on it. Its an awesome house, and its better than buying something as to where I dont know what condition the house is. These people took care of their home, spent a lot of money renovating it, but unfortunately cant keep it and are walking away from it.
So I need to hop on that train. I know my roommates will stay with me. We're all friends and enjoy living together. Plus I'll make them all sign leases
Probably not going to happpen. They would have to qualify you on your income alone....even with 80k down that isnt much on almost 500k....hopefully they didnt qualify you using your roomates paying rent as income, if they did, youll be the next person to be foreclosed on. I would be hesitant to dump any money into the toxic real estate market where you are at. California and Nevada are at the worst end of it.
I'm pre-qualified on my income and with the help of one of my roommates. She's a loan officer for the credit union I bank at and I got the loan from them as well. She had the approval made.
The financial part of me being able to pay it isnt an issue.
Tokin, you only dropping by for advise now?
Don't tell me we've lost our only gay (as far as we know) member? Another pun.....
Anyway, it really depends on the market in your area. Are houses moving in a sale environment or are they being foreclosed?
Depending on that answer is what you need to do. I'd personally wait and see what the owners do. We haven't seen a low in the housing market yet. Hang (sorry) tight and you'll probably save a bunch of money.
Good luck to you!
I say go for short sale.....the CA housing market is so screwed up that I think that you may have a shot at it.
If that doesn't work, then go for it at foreclosure, buying a foreclosure takes more up front prep, esp if it goes to auction. Loan check in-hand for that.
__________________ Want to know what's ironic? My Polish grandparents who were captured during the Warsaw Uprising.
Grandmother was enslaved in a German concentration camp and forced to make artillery shells for the 3rd Reich. Grandfather was in German and Soviet POW camps...ending up in Siberia. After WWII, they moved to the USA to be free, but Obama has turned it into the USSA...Grandaddy is rolling in his grave. CBTMA Member
If you can comfortably make the payments without your roommates, at the likely buying price, and you are getting a good rate on the loan (hard to imagine not, right now), and you actually have the money available as opposed to just pre-approval, why not do it? It sounds like it might be a good buy, in that case.
Dunno that I'd be looking at the place as an "investment", tho, you're in part of the country where real estate is awful shaky. If you like it, you're ok with that monthly payment for ten years WITHOUT ROOMMATES, then go for it...roomies just makes it easier.
The key is making sure you're ok with this place over the long term, cuz that's where you might find yourself if the market keeps dropping, or worse yet in the seller's shoes.
The good thing about the roommates is that I'll pretty much be only paying about 450 a month out of my pocket toward the mortgage. If they weren't there, I can still pay the mortgage by myself.
I hope you learned a lesson from your Father, not to get over extended.
You do not want to take on too much debt, if you doubt my wisdom that is why our economy is in shambles.
I wish our government would learn this principle too.
__________________
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So, a client of mine has filed for Bankruptcy and is trying to short sell the home. Its a beautful house. They owe about 750, and the FMV is listed at about 535.
I'm really thinking about buying this house. They're not in foreclosure yet, but I was wondering if maybe I should wait till the house falls under foreclosure and maybe wait till the trustee sale date and make an offer? Would anyone see this as a better way to go or maybe just put in an offer on the short sale? If they short sale it, I was going to offer 475...
I'm planning to put down about 80K. I have about 63 in a money market that my parents opened up for me when I was born. I have some more savings and my parents are giving me another 15K. I wanna save some of the money to invest into the home and fix some things. I'm already pre-approved through my credit union for up to 500K, so at least thats there.
About the house: They took out a 2nd mortgage to fix up the yard. They spent about 160K on landscaping, a pond, the gazeebo, and a small deck where the jacuzzi is. They repaved the drive way. Put new garage doors. etc etc. 4 bedrooms, 3 baths, 2 car garage. I live with roommates now, but I've talked to all of them and they're willing to come with me and pay me rent.
Any input is awesome!
Going for the buy before the foreclosure doesn't have a down side, no different than buying on the courthouse step... pick you price, make the offer and see if you get a bite. No bite, no loss.
I represented a "buyer" a variety of times on the court house steps, every time I had to return the check as he didn't win.
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pssst...old thread got bumped by a spammer but im pretty sure its already sold or foreclosed bynow...heck i think token isnt even around anymore havent seen anything in OT lately...
Home Buying
'05 Tundra DC TRD 2 WHL: The TOW truck, Spectra Mica Blue, with Kenwood H/U, Kenwood Amp and crossover. Infinity 6010cs, 10" Rockford SUB, 6 disc CD Changer mounted in Center console, SWI-X to retain steering wheel controls, 7" TV with DVD. Tinted Windows, Three chamber Flowmaster, Painted front chrome strip 
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