Well for the past year we have been trying to get a loan to buy my brother in law and sister in laws house. The first bank we wen't to said they could do it perviding we get our credit history fixed(3/4's of what was on there was not ours),short story we get it fixed, bank said they could not do it. We go to our bank we have our other home thru. Fill out all the paper work, wait, they call us and said we were approved,one condition, we had to sell our other house(I planned on using it as collateral,I owe 5 years on it yet, was going to rent it out). We talked to my wifes other sister, they were interested in it,short story they couldn't get the loan. Put house up for sale, couple people look at it, just too small, interest rates down, people looking for bigger houses cause they can afford it, market flooded,etc.. Try our old bank again, ask them if my sister in law could rent to own my old house, they said yes. We go to lawyer get contract drawn up. Go back to bank, she says "Oh they are not buying it" another run around. We try another bank(in the mean while we are somewhat moved into the new place, kids in different school, changed address and*****)they said no problem. We fill out paper work get the ball rollin everything lookin good. The only thing was because we don't have a down payment(what early 30's guy can pull 10 or 20 grand out of their****)the house had to appraise at 105,000. The askin price is 85,000. My brother in law said that we didn't have anything to worry about 'cause the house alone appraised at least 90,000. The asessers come look at the house(we have a closing date already set) they ask questions look thru whole house. While we are waiting for the bank to hear back from them we go thru hell(because of the property being sub divided, red tape out the wasu) trying to get all the paper work for the closing. We finally hear from them last nite. The house apraised at 68,000. They said it needed a new roof(was going to put new shingles on this summer)new windows(what the hell do you expect for a older house,planned on replacing them anyways)hole in the floor(don't know where they seen that, except for where the vents are for heating and the discharge tube and water supply for washer is) and the forced hot air furnace was not adaquit(sp?) enough. The outdoor wood furnace was put in 5-6 years ago. I felt sick to my stomach when my wife told me the news,my kids are upset cause they really love it here. I want the house because it's bigger then our old house, I would have a 2 car garage plus a 80x100 tractor shed, and 2 acres of land. My brother in law needs to sell this house to finish his closing for their new house that I spent all last summer helping build. Plus he needs some place to keep his things till he gets a garage built to move his tractors and pony, stuff, so we would be the best to do that. We called the bank that my brother in law has this house thru to see what we can do there, waiting for them to get back to us to ask them. I'm basically screwed cause we have a 2 year contract with my sister in law to rent our old house and her fiance' just sold their trailer they were living in so they could afford to pay for the new place(he is getting raked over the coals by his ex for child support). They are finally getting somewhere. I sold them the house for what I paid for it, even though I put new window and furnace in it. I believe in helping family out, well this side of my family, my side is so dysfuntional it's not funny(thats a story in itself). I've really put myself in a hard place this time. Sorry for the off topic but I gotta get this out of my system before I lose my mind. plmczy
Thats the problem when interest rates drop, the banks hate giving out money!!They'll give it to some newlywed yuppies with no kids, there both working making between 60-80K ayear apiece!!! so when they start seeing a income of 160,000 a year they OK it. Keep trying,If & when the interest rates go up, they'll ok it, then they'll be making more!! JimV
I hate mortgage commpanies, but at times, that is the only way to get your house.... try searching online for lenders, they ask all kinds of questions, such as, "do you presently own a home, do you want to sell your present home" etc etc etc....that may be a good option for you... best of luck, man....I'm looking for a house too...keep positive, it will happen...
Yeah try the online companies, I keep on seeing ads for a company called Ditech(sp) 2 acres of land and a house and out buildings? for 68,000? give me a break. I would check into another appraiser. thats how much people pay for apartments out here. FS
plmczy - I just went thru this. Here's the bottom line score on lending institutions. Don't look in the sunday paper and don't bother with consumer banks - basically all the ones you've heard of. There is this company called HSH that is independant from any lender or bank. They make money by publishing a complete list of all lenders - not just major banks - in every area of US, by type of loan and rates. Many will even do 5% down. I think real estate agents use their data to help get their clients qualified. (And to shop around for kickbacks too - probably!) They list the major banks rates as well. But you will see that most of the behind the scenes lendors have much better deals. I've run substantial amounts of money thru my major name bank - via the business I own - for years. You'd think I'd have developed a relationship with them. NO! They wouldn't even write the loan. I found a better deal than any major name consumer bank. They are all listed in HSH's research. The list is $20 it's put out once a week. We were approved for 5% down. On a fairly large loan. You may not have 20k but you may be able to come up with $4000 - that would be 5 on your 80k. Also make sure to walk them thru each of your credit reports. Each time you apply - that lendor may be farming your loan out for approval from any number of companies that will run your report. These often show up as hits and bring your overall score down. If you have things on your credit that need attention - buying the reports online from the 3 bureaus gives you access to a phone number directly to the bureau. If you address your issue by phone they have only like 3 days or something to respond. Rather than the normal 30 days. We cleaned up alot of stuff this way. You won't get the phone number otherwise. Just for the record I have no connection whatsoever to HSH. I found them thru a financial book I bought concerning business finance. Hope this helps. Or you could just sell me all your vintage hotrods for 50 cents on the dollar. lol! Just kidding. HSH lendor research...
If you guys could see the stupid***** that has happened to house prices in the UK you would get on yer knees and praise the lord that you live in the US. 100,000 pounds (180,000 US dollars) for a two bedroom house, small, end of terrace, small garden, in town. And this is a first time buyer, entry level house!!!! Man, I'd give my left nut to be able buy a house in the country with a bunch of land and a decent garage. Anybody got a US visa going cheap????
Fastsporty - Ya. If he only knew what it was like here. We coudlnt' get invited to a painting party for 68k!!!!!! You could buy a small town in the midwest for the price of a condo here! We ended up not buying - everything was to much.
I don't want to buy another one ever and thats the reason way the people you get your money must be the dumbest out there. I had to prove where the money in my accounts came from at the last day before we settled. It*****s but hang it there.
Playa Del Rey has some of the highest prices in the county though... That's a different world of real estate I guess. The 1200 sq ft house on 1/8th acre of land next door to me just sold for $435,000, to a Deputy Sheriff. Young guy too. and my house is bigger?!! but it doesn't snow here... last night when it was dumping rain it got down to 52ºF so I guess what we save in heating we spend in mortgage payments?! That's too bad about the appraisal, one would think the land would be worth that much?
Morrisman - Are you kidding?!!! There isn't a 2 bedroom on the westside of LA for less than $500,000!!!!!! In fact I recently saw a crack house in Venice - I'm not exagerating - an actual crack house in the hood of Venice for $500,000! Prices doubled in 4 months this last summer. Now nothing is for sale. In my zipcode - and this isn't Beverly Hills or even Santa Monica - there is nothing for sale for less than $1,000,000! thank god for rent control!
DrJ - This will make you even sicker: Last year both places behind me sold for 500k. Over under duplexes just like mine (renting). I figured I could buy one and rent half out to cover most of the mortgage. SO it would be like buying a 250k place - except the rent on the one actually would have covered way more than half of the mortgage. I would have been paying the same amount as what we are renting for. The payment was more like buying a place for 165-180k. I own a business and my wife works. I did what plezy(sp?) is doing. cleaned up our credit - balked at the first rate offer - took some time to shop around some more. We got a way better rate but in the 4 months everything doubled! No one with the same duplex (all built by the same architect in the 50's) would sell for anything less that $1,000,000! If I had just taken the first rate and bought for 500k a year ago - it would be worth over $1,000,000 today! Makes me sick. I totally screwed myself. But who could have seen an increase like that. I didn't even think it was possible. I was sick for like months. The guy behind me bought just right. He got in at just under 500k. Rented half out so he ended up with payments similar to a place for maybe 165k. And is sitting on one mil of value today! And to top it off he's a drunkin' louse with a meth head girlfriend and parties all night long. Had to call the cops on him night before last. Painted his house red, yellow and blue - looks like the Ronald Mcdonald House. Sick. You make more money living in CA but it's all relative cause everything is prices 5 times what it would be anywhere else. I'm broke at the end of the month just like everyone else. And I coulda been a millionaire! What a dumbshit!
Thanks for the helpfull hints and cheering up. I guess it's true, there are people out there that have it worse than I do. 46mopar, I had to do the same thing. My brother in law said those guy's were full of*****. He is going to hire an outside acesser to do the property. My wife is going to call the bank to see if they will accept that. My in law said to try the place where they have this house thru, since they did the acessment 2 years ago. If this falls thru I have no place to live. Everytime I feel like I'm getting somewhere I get beat down like a freakin dog. Anybody have any good cardboard boxes for rent? . later plmczy
A deputy Sherriff bought a house for almost a half a mil? What do they pay them out there? Man that is crazy. r
Prices have gone completely insane. You need to make at least $80K a year to find a modest house around here,without a garage. And rent is the same as a mortgage payment.If I could afford that much,I'd buy the place. I don't know where all these*****ing people are coming from,or where they get the money.
Don't give up! If the bank will give a dirtbag like me a $250,000 mortage AND $60k line of credit, ANYBODY can get it. I just (like last Monday) paid off my student loan after 10 years. My credit*****s (self employed) but I used a mortage broker who shopped around my application till some sucker, I mean "lender", said yes. $60k should get me alot of beer and hot rods! HEY, Unkl Ian, come out west. Prices are still good here!
If I had to buy a house right now, I couln't afford the one I currently own. And to get it, I had to sell my soul and rent out 2 rooms. But the garage is MINE!!! Both my brother, and my parents used lendingtree.com. I think you get 4 quotes and can pick the best deal. Lenders are basically competing for your business, and may let a couple of little things slide because of it. Might be worth a shot. Best of luck.
I echo the sentiments on SoCal. Here I am, 34 years old, own my own business, and still live with mom n' dad because I can't afford my own place yet. Still trying, but more and more I'm thinking of bailing out on California and buying where my money will actually do something. Sorry in advance if a flood of California refugees my age coming to buy cheaper properties in your state raises property prices beyond your means in your own area! In no way do I mean that as a wisecrack, but it is a desperate situation out here any more!!! There simply is no longer enough single-family residences to go around, so more and more people are shacking up in apartments and condo's and it's only a certain number of folks that will get into a single-family residence-- therefore the prices keep going up and up and up and only the most well-off can afford them. The average joe is forever hopeless here unless he comes into an above-average amount of money. Paradise seems lost to me.
Well we are going to try the outfit that my brother in law has the house thru now. I borrowed against my 401K and with our IRS refund, we might be able to swing it. My brother in law said that he would lend us the the balance of what we need if we need it. I got my fingers crossed. Later plmczy
put a home equity loan on your first home, then use that money to buy the second home.you can get an intrest only loan on the home also and drop your payments substantially. most lenders have an****umable loan available so your sister can****ume your loan after she shows one year of good payment history. the down payment and the rental contract is more than enough to secure a loan on the new home. i bought 7 houses allready and i dont have any money on hand either, i just use theirs. for any advice or loan info just pm me.
'Anonymous', Hey, I'm talking small country town in England, not some west side flash apartment in LA!
FRKSHO1, the bank I have my first house thru said that we could rent to own our house, so we had a contract drawn up and brought it with us to the bank to start the paper work. The lady in charge took a look at the contract and said "Oh they aren't buying it" I was about to smack her. She said we would have to have an appraisal on both houses and it would cost us $750 to do it, non-refundable also. That is why we went with this other bank that turned us down. It only cost us $350, which we lost anyways. I think this whole appraisal thing is a scam, they come look at your house, decide it's not good enough and appraise it low. Bam they score a percentage of that for just taking a look around a house. I think I should get into that. I'd be freakin rollin in the cash. My sis in law took over our payments then some, so in 2 years they would have put down 5 grand on the house for their down payment. later plmczy
venice - artist lofts for $700,000... what artist can afford that? people who can afford $700k? business men and entertainment lawyers wishing they were artists
My concern while reading this is the asking of 85k and the appraised value of 68k. I wouldnt tell a new lender you have an appraisal, expecially that is that low. What about seeing if he will owner-finance , or rent it for a year till you can get things worked out. Maybe borrow some cash, give to him for your down payment, he finishes his house, finances your house, and he will make money off you in interest in the long run. See if any of your friends know an appraiser, who will bring it in around 110k, bank might not require anything down the, since they are at their 80 percent that they wanna stay at. My appraiser likes to drink alot, and I own a bar, so it helps alot. Good luck, do not give up. there is a way for you to get that house, if you get turned down, ask the lender if they can recommend someone who can help you. Even if ya have to pay a higher interest rate, get it, pay it, then go for a refinance. A percent is often no more than a couple of cases of beer a month, or a night out to dinner for the family. You cant put a price on a home everyone will enjoy. Good Luck.....Scott
I just had two buddies of mine do something like what frksho is suggesting. They both had a large amount of equity in their homes. They both got a home equity loan, one where they could withdraw money as needed. They both waited 3-4 weeks then bought 2nd homes using most (but not all) of the equity loan money as downpayment. Then they moved out of the first homes, rented them out & still had a little extra cash left over for "what if's". Pretty slick.
That might work out just GREAT for those who already have a place. But around here first-timer's are hopeless.... Virtually no one I personally know within 5 years on either side of me has been able to get a place of their own (house), with the exception of one that got herself a tiny condo (which is not a house). Anybody else I have asked that just bought a house had just sold off another house that they already had!
The Jalopy Journal
