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Scarlett

Update nov 2—I think we sold our house

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4 hours ago, bethben said:

I am honestly shocked lately how people are affording high mortgages and especially that banks are qualifying people for these mortgages!  I know someone who just bought a $400k house.  Her husband runs his own ministry that doesn’t pay well and she works very very part time.  Her kids were on reduced lunch at school.  I asked her how she got a mortgage and if they can really afford that house.  She says they’ll rent out a room and her husband hopes to get a full time job.  But still—how did a bank give them a mortgage now? Or a couple in their early 20s that bought a new $300k house.  No money down and no money to landscape the backyard per the sale agreement.  DH and I were nervous about a $170k mortgage on a $300k house that we bought 4 years ago.  The bank would have given us a $370k mortgage.  We thought they were insane.  Maybe people just assume they can afford something if the bank says they can?

 

That is crazy! I bought a house recently. Very small mortgage. I have excellent credit. My salary isn't high but it's consistent and the monthly mortgage payment is a small percentage of my income. But I was put through the ringer! The underwriters were relentless. I had to justify so many things in my bank statements. I thought lenders had gotten pretty strict since the last housing crisis. And the lender certainly wouldn't have accepted "Well, I plan to get a better job." They needed paystubs, tax statements, everything. Proof of past financial stability, not promises to do better in the future.   

 

 

 

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6 minutes ago, OH_Homeschooler said:

 

That is crazy! I bought a house recently. Very small mortgage. I have excellent credit. My salary isn't high but it's consistent and the monthly mortgage payment is a small percentage of my income. But I was put through the ringer! The underwriters were relentless. I had to justify so many things in my bank statements. I thought lenders had gotten pretty strict since the last housing crisis. And the lender certainly wouldn't have accepted "Well, I plan to get a better job." They needed paystubs, tax statements, everything. Proof of past financial stability, not promises to do better in the future.   

 

 

 

My mom often describes the process they went through to get their first mortgage.  She and my dad had saved a 20% down payment, pretty basic stuff.  The underwriters called and wanted to know where the money came from.  Mom was like "we saved it."  Ok, where did you get it to save. "from his job."  Ok, but, how were you able to save that.  "um....he got paid, I went to the bank and cashed the check, and deposited some of it into savings."   Um, we don't understand....

 

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5 minutes ago, happysmileylady said:

My mom often describes the process they went through to get their first mortgage.  She and my dad had saved a 20% down payment, pretty basic stuff.  The underwriters called and wanted to know where the money came from.  Mom was like "we saved it."  Ok, where did you get it to save. "from his job."  Ok, but, how were you able to save that.  "um....he got paid, I went to the bank and cashed the check, and deposited some of it into savings."   Um, we don't understand....

 

 

Yes, exactly! They make you feel like a criminal. 

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10 minutes ago, OH_Homeschooler said:

 

Yes, exactly! They make you feel like a criminal. 

What's funny is, they have bought a total of 3 houses in their lives.  This was the first house (back in like 84 or something)  For the other two, they still had the question but when the answer was "equity from selling our previous house" that was an ok answer lol.  

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We bought our most recent house in Feb.  I had never been through the buying process before and was expecting the underwriting to be awful.  Nope,  we were approved for way more than we could actually afford once you took utilities and house maintenance into account.  Thankfully, we knew better than to even consider houses at where we were approved. Many people do not realize that buying at the top of that doesn't take into account all the other expenses of owning a house.

The underwriters had a long list of documents they needed but once they had that they never questioned any of it.  The bank and savings statements clearly showed where our 20% down was coming from, etc.  IT was such a simple process I couldn't believe it.

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4 minutes ago, hjffkj said:

We bought our most recent house in Feb.  I had never been through the buying process before and was expecting the underwriting to be awful.  Nope,  we were approved for way more than we could actually afford once you took utilities and house maintenance into account.  Thankfully, we knew better than to even consider houses at where we were approved.

 When we bought our house 20 years ago, DH worked full time and I worked part time.  But we wanted the flexibility that our living expenses were not contingent on me working.  So we only turned in documents pertaining to DH's job.  We were questioned so many times about my income and we just kept repeating, we only want the pre-approval/loan value to be based on DH's income.  They kept feeding us a line "but you get so much more house if you would just let us use your income too".  We've never once regretted not going for a bigger loan but they sure did try to make us feel guilty about it.

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I will say, that although I'm a fan of low down payment mortgages for those who otherwise can't get a first house, I am NOT happy about how much lenders want to lend you! We had the same thing, where they wanted to lend us WAY more than we knew we could afford!

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We wouldn't have bought any of the three of our houses if they hadn't been low down payment (two were VA and one was rural development).  

But with our first house, the bank president worked our loan.  It was back when the realtor went with you to the bank.  At least here they did.  Dh was in the military and I had just finished college when we were buying.  I hadn't taken my licensing test yet to start working.  The banker just asked me if I promised to go to work soon.  I said yes.  We got the loan.

Edited by myblessings4

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8 hours ago, Ktgrok said:

 

 

The wealthiest client I dealt with in the vet field walked around with no makeup, saggy yoga pants, and a worn tank top 24/7. Hair pulled back in a greasy bun. Cheap target flip flops. But she had a black American Express card and had the kind of money to take her 6 month old luxury car in for an oil change at the dealership and on a whim buy a whole new car instead of getting the oil changes. So yeah, as we said in the vet field, you can't x-ray someone's wallet, lol. (and she kept that black card tucked into her cleavage in that tank top, lol)

Because for a whole heck of a lot of people saving 10-20 percent of a house price is NEVER EVER going to happen. And it certainly won't happen in a  few months/years. Particularly when they are already paying student loans, high rent, etc. Mortgage may be significantly less monthly than their rent, allow them to get their kid in a better school district, give their kid a safe place to play, etc etc. It's why we have HUD. It has been shown that people who own are better neighbors than those who rent, in that they take better care of the property if they own it, and the neighborhood is more stable. FHA and agricultural loans, etc are there for a reason. 

That said, of course people should be sure they can afford the monthly mortgage, insurance, taxes, and maintenance. But if they put their savings towards closing costs that means no savings to put towards unexpected maintenance issues, in many cases. 

And ultimately that means they can’t afford to buy a house. 

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13 hours ago, seekinghim45 said:

Scarlett, I'm with you.  I don't get the having to cover closing costs. ( Then again, we've been in our house for 21 years.)   If you are going to be responsible and buy a house, then you need to have at least 10 percent down ( perferably 20) and the closing costs.  If you cannot scrape that together, then you need to save for a few more months or years until you get it.  Period. 

Hope you find a buyer. 

Easy to say on a doctor's income.

Rent is often at least as if not more expensive than buying, eating up any money that could go towards a down payment.

Edited by maize
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We bought our first home with a 5% down payment. We were careful and stayed well within our budget but buying was one of the very best financial decisions we have ever made. If we had had to wait to save 20% we might never have been able to afford a home; as is we are within a few years of having this one paid off.

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1 minute ago, maize said:

We bought our first home with a 5% down payment. We were careful and stayed well within our budget but buying was one of the very best financial decisions we have ever made. If we had had to wait to save 20% we might never have been able to afford a home; as is we are within a few years of having this one paid off.

Us too.  I am not against low down payment. 

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56 minutes ago, Scarlett said:

And ultimately that means they can’t afford to buy a house. 

No, they can afford it, if closing costs are not a factor, because then they have that buffer to use toward maintenance, unexpected repairs, etc. And if their mortgage is lower than rent, like it is here for many, they can then continue to save up even more of an emergency fund. 

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2 hours ago, maize said:

We bought our first home with a 5% down payment. We were careful and stayed well within our budget but buying was one of the very best financial decisions we have ever made. If we had had to wait to save 20% we might never have been able to afford a home; as is we are within a few years of having this one paid off.

 

I get what you and others are saying, but, there’s a difference between buying a house for very little downpayment (however it’s gerrymandered) and buying a house out of your price range by negotiating closing costs, sales price, etc. Everyone want to benefit from the bargaining process, but too often arrangements can be made that just get people in trouble. I’m not against home ownership, or sellers assisting with closing costs. I do, however, believe too many people end up buying over their heads and are helped to do so by mortgage lenders and eager real estate agents. 2008, kwim?

(ETA “you” here in second paragraph is a general you, not specifically to maize) 

As far as needing to document where your downpayment money came from - they need to verify that you weren’t given money by a friend or relative in a casual loan, because that “loan” would then have to be calculated into the debt ratio, which the lender uses to figure out if/how much of a loan you qualify for. In buying our first home we actually had to have my dad write a “gift letter” saying he didn’t expect to get back $2K that he floated us so we wouldn’t have to delay closing while waiting to liquidate another asset (process took longer than we expected). We “gifted” him right back, but the source of that money made a difference in how our approval process went. 

ETA2 my comments in this thread are mostly considering Scarlett’s first buyers who walked when closing costs weren’t covered after an already significant reduction. The price was, obviously, out of the range that they decided that they could spend. 

Edited by Seasider too
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16 hours ago, bethben said:

I am honestly shocked lately how people are affording high mortgages and especially that banks are qualifying people for these mortgages!  I know someone who just bought a $400k house.  Her husband runs his own ministry that doesn’t pay well and she works very very part time.  Her kids were on reduced lunch at school.  I asked her how she got a mortgage and if they can really afford that house.  She says they’ll rent out a room and her husband hopes to get a full time job.  But still—how did a bank give them a mortgage now? Or a couple in their early 20s that bought a new $300k house.  No money down and no money to landscape the backyard per the sale agreement.  DH and I were nervous about a $170k mortgage on a $300k house that we bought 4 years ago.  The bank would have given us a $370k mortgage.  We thought they were insane.  Maybe people just assume they can afford something if the bank says they can?

This is exactly what people assumed before the last crash. 

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19 hours ago, bethben said:

I am honestly shocked lately how people are affording high mortgages and especially that banks are qualifying people for these mortgages!  I know someone who just bought a $400k house.  Her husband runs his own ministry that doesn’t pay well and she works very very part time.  Her kids were on reduced lunch at school.  I asked her how she got a mortgage and if they can really afford that house.  She says they’ll rent out a room and her husband hopes to get a full time job.  But still—how did a bank give them a mortgage now? Or a couple in their early 20s that bought a new $300k house.  No money down and no money to landscape the backyard per the sale agreement.  DH and I were nervous about a $170k mortgage on a $300k house that we bought 4 years ago.  The bank would have given us a $370k mortgage.  We thought they were insane.  Maybe people just assume they can afford something if the bank says they can?

We took out a 0% down loan about 15 years ago and to this day I feel like it was potentially one of the dumbest financial things we ever did. Having a house with no equity and no savings to speak of was just so crazy, but everyone was saying it was no big deal and wouldn't we like to live in a house instead of renting an apartment, and our monthly payment would be lower (so misleading!), and the government is giving these loans out so they are totally safe. It was sold to us as basically no-risk. And we actually bought a house for about 20% less than what the bank was willing to loan us! When I look back now I count that house purchase and financing my first bedroom set as financial pitfalls that I somehow was talked into even though I knew better.

When we went to sell that house it was juuuust before the bubble burst. We had buyers fall through twice, both times because banks and realtors convinced the buyers they could buy a house without any cash on hand. That they literally would not have to put any dollars towards anything because they could just negotiate the contract so we would pay for the inspection, closing costs, appraisal, whatever. They had pre-qual letters, but when it came down to the underwriting just before closing...it was a no go. So we learned pre-qual letters are worth the paper they're printed on.

And then the bubble burst and our eyes were wide open to just how ruined we could have been had we not managed to sell in time (we had to move due to DH's job and even if we found good renters, it was doubtful the mortgage would have been covered by their rent).

I know why people do it, but I feel very much like no one learned any lessons after the 2008 bubble burst. Fifteen years later and we've just saved up enough to have a nice downpayment depending COL where we decide to buy. But when we were young and just married, we did not want to wait 15 years to save up and everyone just encouraged us to not worry about it because buying is "such a better deal". Well, maybe, but it's a HUGE risk buying that way.

Edited by EmseB
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14 hours ago, Seasider too said:

 

I get what you and others are saying, but, there’s a difference between buying a house for very little downpayment (however it’s gerrymandered) and buying a house out of your price range by negotiating closing costs, sales price, etc. Everyone want to benefit from the bargaining process, but too often arrangements can be made that just get people in trouble. I’m not against home ownership, or sellers assisting with closing costs. I do, however, believe too many people end up buying over their heads and are helped to do so by mortgage lenders and eager real estate agents. 2008, kwim?

ETA2 my comments in this thread are mostly considering Scarlett’s first buyers who walked when closing costs weren’t covered after an already significant reduction. The price was, obviously, out of the range that they decided that they could spend. 

Exactly.  It is just negotiating overkill.  And I guess maybe some sellers are so desperate to sell they will just give away all the equity?  I really don't understand it.  

12 hours ago, Frances said:

This is exactly what people assumed before the last crash. 

Again, exactly what I have been thinking.  I have a baaaaad feeling about the way real estate is going.

9 hours ago, EmseB said:

We took out a 0% down loan about 15 years ago and to this day I feel like it was potentially one of the dumbest financial things we ever did. Having a house with no equity and no savings to speak of was just so crazy, but everyone was saying it was no big deal and wouldn't we like to live in a house instead of renting an apartment, and our monthly payment would be lower (so misleading!), and the government is giving these loans out so they are totally safe. It was sold to us as basically no-risk. And we actually bought a house for about 20% less than what the bank was willing to loan us! When I look back now I count that house purchase and financing my first bedroom set as financial pitfalls that I somehow was talked into even though I knew better.

When we went to sell that house it was juuuust before the bubble burst. We had buyers fall through twice, both times because banks and realtors convinced the buyers they could buy a house without any cash on hand. That they literally would not have to put any dollars towards anything because they could just negotiate the contract so we would pay for the inspection, closing costs, appraisal, whatever. They had pre-qual letters, but when it came down to the underwriting just before closing...it was a no go. So we learned pre-qual letters are worth the paper they're printed on.

And then the bubble burst and our eyes were wide open to just how ruined we could have been had we not managed to sell in time (we had to move due to DH's job and even if we found good renters, it was doubtful the mortgage would have been covered by their rent).

I know why people do it, but I feel very much like no one learned any lessons after the 2008 bubble burst. Fifteen years later and we've just saved up enough to have a nice downpayment depending COL where we decide to buy. But when we were young and just married, we did not want to wait 15 years to save up and everyone just encouraged us to not worry about it because buying is "such a better deal". Well, maybe, but it's a HUGE risk buying that way.

And that seems to be the theme......all the 'smart' people of the world are saying one thing and reason and good sense says another.  That is one of the most difficult things with money in the world we live in......trying to go against the stream of what everyone else is doing, especially when what everyone else is doing gets them into nice houses, cars, college, vacations etc.

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Also I wanted to say that the buyer who backed out over $1000 in closing costs?  After a 15K reduction in asking price....well the daughter in that situation.....told me she was in a bad marriage and had to get out and her parents were going to buy a house with her to help her get away from the marriage.  I looked her up on FB....and either she hasn't yet told him she is leaving him or she changed her mind.....or something.  They seem very much together to me.  

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17 hours ago, maize said:

Rent is often at least as if not more expensive than buying, eating up any money that could go towards a down payment.

 

If I could qualify, buying would be less expensive than renting my area. I got a house that works for us, but rents have gone sky high in my area. A smaller, older house with zero renovations near me just rented for $400 more than my rental. Mine is a bit retro, but has a new roof, furnace, and some appliances.

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We lived overseas from 2003 to 2006.  We moved back in mid 2006.  I was shocked at the signs we were seeing when looking for a rental home in coastal FL.  The developers has signs advertising stuff like no credit check, no down payment, etc, etc,  Now we had bought both of our previous homes at that time with no down payment-VA loans, but they sure checked our credit, income, debts, etc,.  I was telling the kids that this was not going to end well with these kinds of risky lending. And of course, it didn't. 

Now as many of you are saying, they always wanted to approve us to buy higher cost homes.  We have only ever bought what we could afford and was less than the typical percentage for housing than banks expected.  Therefore, we have always been paying more to pay down the loan faster.

Oh and as to closing costs, we always had the owners pay most of those but because of that, we didn't lowball the offers we made.  Like for the house we have now we paid almost asking price but they did cover closing costs, and they put in a needed component to the house (radon reducing system) that cost many thousands of dollars.  

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3 hours ago, TravelingChris said:

We lived overseas from 2003 to 2006.  We moved back in mid 2006.  I was shocked at the signs we were seeing when looking for a rental home in coastal FL.  The developers has signs advertising stuff like no credit check, no down payment, etc, etc,  Now we had bought both of our previous homes at that time with no down payment-VA loans, but they sure checked our credit, income, debts, etc,.  I was telling the kids that this was not going to end well with these kinds of risky lending. And of course, it didn't. 

Now as many of you are saying, they always wanted to approve us to buy higher cost homes.  We have only ever bought what we could afford and was less than the typical percentage for housing than banks expected.  Therefore, we have always been paying more to pay down the loan faster.

Oh and as to closing costs, we always had the owners pay most of those but because of that, we didn't lowball the offers we made.  Like for the house we have now we paid almost asking price but they did cover closing costs, and they put in a needed component to the house (radon reducing system) that cost many thousands of dollars.  

And we would have been fine with that. 

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On 8/21/2019 at 11:50 PM, Seasider too said:

As far as needing to document where your downpayment money came from - they need to verify that you weren’t given money by a friend or relative in a casual loan, because that “loan” would then have to be calculated into the debt ratio, which the lender uses to figure out if/how much of a loan you qualify for. 

This must vary by lender or geographically because I don't remember having to show anything but a pay stub for DH (which, technically we didn't have because he was changing jobs). No bank statements, no explanation if where the down payment was coming from, nada. I vaguely recall the pay stub thing for our first house (which would have been mine since that's what our mortgage was based on because DH was in the military & not living with me at the time).

My brother bought a house sometime after that in another part of the US and asked us for a loan to cover some of the down payment. I don't think his lender asked for where the down payment money was coming from  (although who knows since we didn't provide it). His was a stupid situation where the house wasn't worth what they were willing to pay for it & the first appraisal said that. Idiots that my bro & his wife (now ex-) were, instead of using that to lower the asking price, their real estate agent found an appraiser to do a 2nd one that matched their offer. #^$@%! They were way underwater on that house when they divorced.

So I think each lender must have their own policies...

Edited by RootAnn

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5 minutes ago, RootAnn said:

This must vary by lender or geographically because I don't remember having to show anything but a pay stub for DH (which, technically we didn't have because he was changing jobs). No bank statements, no explanation if where the down payment was coming from, nada. I vaguely recall the pay stub thing for our first house (which would have been mine since that's what our mortgage was based on because DH was in the military & not living with me at the time).

My brother bought a house sometime after that in another part of the US and asked us for a loan to cover some of the down payment. I don't think his lender asked for where the down payment money was coming from  (although who knows since we didn't provide it). His was a stupid situation where the house wasn't worth what they were willing to pay for it & the first appraisal said that. Idiots that my bro & his wife (now ex-) were, instead of using that to lower the asking price, their real estate agent found an appraiser to do a 2nd one that matched their offer. #^$@%! They were way underwater on that house when they divorced.

So I think each lender must have their own policies...

 

Not just the lender but the type of loan.  The types of loan that get better interest rates also generally require more documentation.

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Holy cow! I just looked up current interest rates for mortgages. I didn't realize they are so low. I thought we had a good rate back in the day (under 5% APR), but there are a few at 3.25% APR. Crazy talk!

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10 minutes ago, RootAnn said:

Holy cow! I just looked up current interest rates for mortgages. I didn't realize they are so low. I thought we had a good rate back in the day (under 5% APR), but there are a few at 3.25% APR. Crazy talk!

Yep.  Which is why we would like to sell now and buy the house in town that we found.  

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44 minutes ago, sassenach said:

If it goes into foreclosure, you may be able to buy it at auction for dirt cheap. 

Not for as cheap as we are getting we are getting it for 17k less than they paid for it 12 years ago. 

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Reading through some older posts in this thread and I have a question.

We’re kind of figuring on buying an(ther) house or land and construction in a year or so. It’d all be on dh’s finances, since I don’t work.  But the vast majority of “his” money gets transferred to my bank account and I move it around to where it needs to go (in his, mine, and our names.). Are they going to want to look at my stuff, too?  Because it’s going to give them a major headache, lol.

We did buy our house with a low down payment, fwiw. It was far from a terrible decision for us.  If we expected to see through a 30 yr mortgage it might be, but that’s never been the intent.  Frankly, being in such a crummy market, I’m glad we haven't had more money tied up in this place.

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2 minutes ago, Carrie12345 said:

Reading through some older posts in this thread and I have a question.

We’re kind of figuring on buying an(ther) house or land and construction in a year or so. It’d all be on dh’s finances, since I don’t work.  But the vast majority of “his” money gets transferred to my bank account and I move it around to where it needs to go (in his, mine, and our names.). Are they going to want to look at my stuff, too?  Because it’s going to give them a major headache, lol.

We did buy our house with a low down payment, fwiw. It was far from a terrible decision for us.  If we expected to see through a 30 yr mortgage it might be, but that’s never been the intent.  Frankly, being in such a crummy market, I’m glad we haven't had more money tied up in this place.

Yes, they will look at both of your finances.  Don't worry about it being messy, that is what they do for a living.

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We bought both of our homes using a VA loan and $0 down. We don't consider either of those a mistake at all. We were gifted closing costs on first home and used the profits from the sale of first home to pay closing costs on current home. We purchased this one four years ago and have a 3.25% interest rate. We knew we wouldn't be staying in either home forever. This home will just be for about four more years and right now is valued at quite a bit more than we owe. 

Of course, we also didn't listen to either of our lenders about how much house we could afford. We knew realistically we could afford much less than what they told us.

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Well I have the signed contract and earnest money in hand.  Now we just have to figure out if the other house is going to be attainable or not.

 

Edited by Scarlett
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18 minutes ago, Scarlett said:

Well I have the signed contract and Ernest money in hand.  Now we just have to figure out if the other house is going to be attainable or not.

 

Ya, congratulations, hope it works out with the other house.

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Does anyone have an experience stopping a foreclosure this close to the foreclosure date? Either by catching up on payments or by getting a co tract to sell it? 

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This is a real nail biter y’all. We gave her a signed contract and earnest money and she gave us keys. We arrived to find the mortgage company had changed the back door lock and winterized the house. 

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2 hours ago, Scarlett said:

This is a real nail biter y’all. We gave her a signed contract and earnest money and she gave us keys. We arrived to find the mortgage company had changed the back door lock and winterized the house. 

 

Hmmm. Perhaps someone got their Thursdays mixed up. Maybe it was last Thursday, not next Thursday. IME foreclosure actions can go fast,  but not until they legally repossess the house, which they shouldn’t do until the actual advised date to the mortgage holder  

Call her and tell her to bring back your money and contract to tear up, you’re dealing with the wrong seller now. 

ETA call your bank (or use your mobile app) and stop payment on that check ASAP. At least that’s what I’d do in your shoes. She doesn’t have clear title to the house. 

ETA2 ok admittedly saying you should tear up the contract may be premature action, but in your shoes, I’d be up with the sun to figure out who it is that actually owns the right to sell that property to you.  

Edited by Seasider too

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1 hour ago, Scarlett said:

This is a real nail biter y’all. We gave her a signed contract and earnest money and she gave us keys. We arrived to find the mortgage company had changed the back door lock and winterized the house. 

Ack!  I’m sorry, stressful!

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On 11/2/2019 at 1:11 PM, Tap said:

Yes, they will look at both of your finances.  Don't worry about it being messy, that is what they do for a living.

I don’t think that’s true.  When we’ve bought homes, they only look into the finances of the applicant(s).  Sometimes I applied with dh if we needed my assets for the mortgage.  Last one only he applied, and they only looked at his financials.  So he is on the mortgage.  We are both on the deed.  You can have just dh apply for the mortgage in your case and not worry about your stuff.

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3 minutes ago, matrips said:

I don’t think that’s true.  When we’ve bought homes, they only look into the finances of the applicant(s).  Sometimes I applied with dh if we needed my assets for the mortgage.  Last one only he applied, and they only looked at his financials.  So he is on the mortgage.  We are both on the deed.  You can have just dh apply for the mortgage in your case and not worry about your stuff.

But if his finances are going into her account they will have to look at that account to see where his money goes.  We dealt with this last year when we bought a house.  Dh was the only one on the mortgage so they didn't need to see any of my income but in our savings account is in my name only.  They did need to see that because his money was going into it.

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1 hour ago, Seasider too said:

 

Hmmm. Perhaps someone got their Thursdays mixed up. Maybe it was last Thursday, not next Thursday. IME foreclosure actions can go fast,  but not until they legally repossess the house, which they shouldn’t do until the actual advised date to the mortgage holder  

Call her and tell her to bring back your money and contract to tear up, you’re dealing with the wrong seller now. 

ETA call your bank (or use your mobile app) and stop payment on that check ASAP. At least that’s what I’d do in your shoes. She doesn’t have clear title to the house. 

ETA2 ok admittedly saying you should tear up the contract may be premature action, but in your shoes, I’d be up with the sun to figure out who it is that actually owns the right to sell that property to you.  

Well if she doesn’t still own it she can’t sell it to me so I am not worried about tearing up a contract.  I am not a bit worried about that part.  I am worried that red tape will somehow make it impossible to stop he foreclosure in which case we won’t be getting this house.  Everyone.....our buyers, the seller and us and all our friends are certainly on pins and needles.  Hopefully we will get some answers tomorrow.  

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1 hour ago, Seasider too said:

 

Hmmm. Perhaps someone got their Thursdays mixed up. Maybe it was last Thursday, not next Thursday. IME foreclosure actions can go fast,  but not until they legally repossess the house, which they shouldn’t do until the actual advised date to the mortgage holder  

Call her and tell her to bring back your money and contract to tear up, you’re dealing with the wrong seller now. 

ETA call your bank (or use your mobile app) and stop payment on that check ASAP. At least that’s what I’d do in your shoes. She doesn’t have clear title to the house. 

ETA2 ok admittedly saying you should tear up the contract may be premature action, but in your shoes, I’d be up with the sun to figure out who it is that actually owns the right to sell that property to you.  

 Winterizing stickers were dated 10/19.  She said she had last been there 3 weeks ago.  

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Are you going thru an abstract office?  That's who holds the earnest money where I live- not the seller.   

 

I guess start making calls Monday morning- hope it works out for you!

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2 minutes ago, BusyMom5 said:

Are you going thru an abstract office?  That's who holds the earnest money where I live- not the seller.   

 

I guess start making calls Monday morning- hope it works out for you!

Yes the earnest money check is made out  to Abstract office.  Not worried about getting scammed or losing our earnest money....just worried about the foreclosure.  

I actually gut trust this seller more than our buyers.  

Edited by Scarlett
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1 hour ago, matrips said:

I don’t think that’s true.  When we’ve bought homes, they only look into the finances of the applicant(s).  Sometimes I applied with dh if we needed my assets for the mortgage.  Last one only he applied, and they only looked at his financials.  So he is on the mortgage.  We are both on the deed.  You can have just dh apply for the mortgage in your case and not worry about your stuff.

Maybe state and lender specific. Since the money is transfered into her account and bills paid out of it, a lender will want to see where the money goes. If all the expenses were paid out of his account they can see the ebb/flow of money that would be different.  

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The seller texted me last night and told me she logged on to her mortgage account and it shows her in default but not in foreclosure.  And she said if she needs to make payments to catch up to stop for closure she is prepared to do that.  So I am feeling fairly hopeful.  But still nervous.  

I think someone just jumped the gun on winterizing....or maybe even did it early because they knew it was vacant ( she told them that back in July) and we did have several nights of low 30 temps.  They did not change the front door lock.....so that tells me they weren’t trying to keep the seller out yet.  They did bore out the back door dead bolt but didn’t replace it...they only replaced the door knob lock which is rather annoying because it is not near as secure now.  

They also BADLY mowed the lawn....worst job I have ever seen.  Oh and they padlocked the gates around the pool.  

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Your home stress is stressing me out 😂 I hope it’s just in default and someone was quick to winterize before any damage could happen.  Remind me again why this property is such a good fit for you?  Is it location? Size?

I am hoping for the very best for you and your husband from this, and no more shenanigans from your own buyers 🤞

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21 minutes ago, Arctic Mama said:

Your home stress is stressing me out 😂 I hope it’s just in default and someone was quick to winterize before any damage could happen.  Remind me again why this property is such a good fit for you?  Is it location? Size?

I am hoping for the very best for you and your husband from this, and no more shenanigans from your own buyers 🤞

 

The location is wonderful.  Closer to dhs work by at least 15 minutes, 5 minutes to my parents, 2 minutes to Wm, lol...and the neighborhood is really really nice. I think the nicest neighborhood in this small town.. 1/2 acre lot, in ground pool, lots of trees, a detached Building that has power and water and 1/2 bath and with very little work could be made into a rental. 2000 sf. 3/2/2...

And the price is just unbelievable.  She basically dumped it to avoid messing with it since she lives an hour away.  And because she can’t afford the payment and utilities...

It does need some work to even move in....popcorn pulled down and ceilings re textured.  New carpet ( carpet is only in the 3 bedrooms) and all interior painted.  But structurally everything is fine.  The pool has been cared for...opened and closed and cared for by professionals...not since he died though.,,so it is a bit of a mess right now....

The biggest things I don’t like are the lack of natural light....and there is no way to really fix that.....one west facing window could be made bigger but beyond that it really is just what it is...and the kitchen is dated and closed in. But in good shape....in contrast to my current kitchen which is very open but needs a complete gut job. Current kitchen is in horrible shape.  New house kitchen can be fixed by knocking down a wall between kitchen and living room and taking over the space where a small eating area is now....(there is another ‘formal’ dining area). But that project will have to wait.  In the meantime I only ask that a cabinet that is over the bar be removed as I hate leaning down to see people on the other side of the bar. But that will be a small project that can be done before we move in. 

The tile in kitchen and hallway and entry way is dated and poorly installed but I can live with it for a good while.  This house does need some work, but it is a very very far cry from this fixer we have now when we first got it.  

And the master bedroom is huge....but has a funky design of the sink being open to the bedroom..."probably can put a wall up but that isn’t a priority.  Both bathrooms have tub shower combo units....I will so so miss my custom zero entrance walk in shower that Dh built for me.  

We are very excited......:)

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