imschur Posted October 22, 2015 Report Share Posted October 22, 2015 So we are new to looking for houses. Meeting with a mortgage broker and Realtor later this week. We dont have much money but Im pretty skilled so Im not afraid of a house that needs interior work. Anyhow my girl finds this house that a little too cheap for the area. There are terms Im not sure how to interpret "foreclosure est $267k"This home is in need of renovation and will probably need a cash offer or 203K rehab loan. Other Raised Ranches in town are listed at much higher prices.What do those things mean?I can imagine everything is original (roof, hvac, floors, walls etc) and tired but what else? Quote Link to comment Share on other sites More sharing options...
jtallen83 Posted October 22, 2015 Report Share Posted October 22, 2015 I think they are telling you the bank won't do a standard mortgage loan due to the condition, cash or a rehab loan at a higher interest rate or a different type of loan structure, pay higher interest till the rehab work is done then refinance. Pictures don't show any major work needed but there must be something under the skin, they should have to disclose it but I'd want a professional/independent inspector to give you an opinion.Lots of issues can be hiding underneath, mold, foundation settling, hidden roof rot..........looks way to new for lead issues or aluminium wiring. Quote Link to comment Share on other sites More sharing options...
sketch Posted October 22, 2015 Report Share Posted October 22, 2015 Have it tested for drugs! That can get really fing expensive fast and clean up might take more than a budget! Like years and grey hair! Quote Link to comment Share on other sites More sharing options...
Armed Eye Doc Posted October 22, 2015 Report Share Posted October 22, 2015 It shows to be built in 2000, so no lead paint. As JT said, there has to be something that you can't see in the pics. There's a lot of paint and cosmetic work that needs to be done. There is very little furniture in the house including beds on the floor and no formal window coverings. To me, that says whoever lived there either didn't care about the property (renters?), or they didn't have enough money to do basic upkeep on the house. Quote Link to comment Share on other sites More sharing options...
imschur Posted October 22, 2015 Author Report Share Posted October 22, 2015 Thanks guys. I thought it looked pretty unlived in too. I researched the "foreclosure estimate" thing. Basically regardless of the amount it means the homeowners are behind. Right if they cant pay the mortgage they certainly are not maintaining the place. The yard was actually very nice as was the exterior. Quote Link to comment Share on other sites More sharing options...
Armed Eye Doc Posted October 22, 2015 Report Share Posted October 22, 2015 (edited) Here is the foreclosure record from the public database.http://civilinquiry.jud.ct.gov/LoadDocket.aspx?DocketNo=AAN-CV-14-6017084-SNew link Edited October 22, 2015 by Armed Eye Doc Quote Link to comment Share on other sites More sharing options...
Sisco Posted October 22, 2015 Report Share Posted October 22, 2015 Don't touch it unless you can get it inspected by a very skilled, knowledgable housing inspector. The things that can be hidden, especially if it hasn't been maintained are huge. Depending on where you live, termites, dry rot, nob and two wiring,water damage, foundation damage, soil instability, etc. etc Quote Link to comment Share on other sites More sharing options...
imschur Posted October 22, 2015 Author Report Share Posted October 22, 2015 Here is the foreclosure record from the public database.http://civilinquiry.jud.ct.gov/LoadDocket.aspx?DocketNo=AAN-CV-14-6017084-SNew linkThanks...man Im learning good stuff from you guys Quote Link to comment Share on other sites More sharing options...
shepp Posted October 22, 2015 Report Share Posted October 22, 2015 JT's right. My house was foreclosed only 17 years old everything was trashed house was sound. I got lucky I've heard of sack-Crete down drains and toilets shit like that.my house I had to rip out all the carpet (dog shit and piss everywhere), rip out a couple 1000$ in pergo floor because the fridge leaked water in the kitchen, then into the basement, fix a bunch of water damaged dry wall in the basement and the rest of the upper level because there were knife holes and fist holes in it. Took my two months to get it so I could move in (I was working on the road at the time). If it was all cosmetic I would do it over again. Good luck Quote Link to comment Share on other sites More sharing options...
blue109 Posted October 22, 2015 Report Share Posted October 22, 2015 My sister was recently in contract for a $400k home. Had been fully inspected by the owners, the bank, and by her own guy who had a good reputation and came highly recommended. Few small things aside the house had a clean bill of health. She was days away from closing and there was a rain storm. She wasn't suppose to be in the house, but she had the door code and decided to sneak over for a look. Kitchen had water pouring from the roof in several spots. Leaks all over. They put everything on hold for another inspection and second guy found the entire roof was junk, rot in several walls, termites, and some lesser stuff. The ended up having to eat $5k of the deposit when they walked. Moral of the story...realty racket is bad as politics. These people all know each other and make a healthy living fleecing you. Quote Link to comment Share on other sites More sharing options...
washguy Posted October 22, 2015 Report Share Posted October 22, 2015 Inspector for sure...and their should be a disclosure on the home somewhere...ie the history and problems....meth lab ect....find out about insurance claims...that will tell you a lot also look up property tax records...liens...that will give you the previous owners and then you can look them up and find out their story Wash Quote Link to comment Share on other sites More sharing options...
slugger43 Posted October 22, 2015 Report Share Posted October 22, 2015 Moral of the story...realty racket is bad as politics. These people all know each other and make a healthy living fleecing you. Well, that comment is absolute bullschitt. But hey, everybody gets an opinion. I'm a broker, so I may be prejudiced. You're not, so may not know what the hell you're talking about. No, I'm not offended, and why the hell should you care if I am? You shouldn't. The occasional bad ass doesn't represent the industry. Sorry if you or your family got honked by one of the bad apples.That said, a competent, licensed inspector is a must, regardless of the apparent condition of the property. Most states license inspectors. Also agents. Deal with an experience Realtor who can give you several references of happy BUYER clients. They should be able to give you the names of at least 3 to talk to. Get references from the inspectors, and realize they are not infallible. They typically are not allowed to remove siding, roofing, other surfaces, and can't see anything under the surface. However, they should be using scopes, moisture meters, electrical testers etc. if they are competent and thorough.This house is apparently going to be part of a "short sale". That means the place is not worth what is owed on it. There will be an offer - you or someone else - and that offer will likely be less than the mortgage balance, and the sale will have to be approved by the lender, who is essentially going to agree to take less than they are owed. After the bubble broke, there were a bunch of these, and there still are. I warn you, negotiations may be extended, but it may be well worth the effort, so plan on being patient.Yes, there is some risk on a foreclosed property, as numerous people have stated. However there are clues to good news here: First, the lender and the owner have obviously been negotiating. It is extremely unlikely that would be true if the previous owners had sabotaged the place. It looks like they are just another victim of the big crash, and are making a legitimate effort to work out of it with the least pain to everyone involved. Probaby just good people who hit a rough patch.One last piece of insurance, use an agent other than the listing agent. It's usually legal to represent both parties in a transaction, but it's a balancing act, and you want your agent representing YOU not the other guy. Find a good agent with a good company, who is local not out of town, and grill the hell out of them. Zillow ain't a bad starting point, and I use them as one of my sales tools. Their estimates of value are just that - estimates.BTW, the statment that other raised ramblers (what we call split entries around here) are selling for more is a BS comment. All home of the same style do not sell for the same price. Silly comment.Good luck! Hope you find a great home at a super price, remodel it to your ultimate satisfaction, and have the whole clan over for Thanksgiving....in 2016, after you finish the remodel.Slug, the evil real estate broker.PS Then have Blue109 over and show him what a great deal you got........... LMAO. Quote Link to comment Share on other sites More sharing options...
sketch Posted October 22, 2015 Report Share Posted October 22, 2015 Nope he needs to move out of state! And hire me to build a nice bunker/ club house! Quote Link to comment Share on other sites More sharing options...
shepp Posted October 22, 2015 Report Share Posted October 22, 2015 I gotta agree with slugger on hiring your own agent. Mine was a guy who's wife worked with my mom he was 65-70 years old doing it as a hobby. He was an awesome guy, he truly wanted me in a nice house. I remember when he took my dad and I into this house he said " don't mind the smell and remember everything is cosmetic" lol, the smell was horrible!!! Quote Link to comment Share on other sites More sharing options...
blue109 Posted October 22, 2015 Report Share Posted October 22, 2015 Relax Francis...I know there are good guys out there. I had one and he's the only reason I'm in my home. My statement stands for 90% of the business. It's dirty and they will take advantage and scam any chance they get. I gave one example, but I've seen countless others. I didn't say he shouldn't go after it, I told him to be careful and not to trust anything at face value with these people. Quote Link to comment Share on other sites More sharing options...
planeflyer21 Posted October 22, 2015 Report Share Posted October 22, 2015 I half agree with Sketch: move out of state and build a bunker/club house! Quote Link to comment Share on other sites More sharing options...
EasyEJL Posted October 22, 2015 Report Share Posted October 22, 2015 They put everything on hold for another inspection and second guy found the entire roof was junk, rot in several walls, termites, and some lesser stuff. The ended up having to eat $5k of the deposit when they walked. I'm a little surprised, what I would have done if a second inspector had found that was go to the bank I was getting the loan with, and have them decline the loan due to the cost of repairing all the damage the 2nd inspector found :) With it seeming like a short sale and them having borrowed $362,693.83 in 2006, you are going to spend a good couple months negotiating an exact price with the bank Quote Link to comment Share on other sites More sharing options...
blue109 Posted October 22, 2015 Report Share Posted October 22, 2015 The problem is that they lost the money had down in escrow already. They actually had 10k and the home owners wanted to keep all of it because she was "bailing out" on a contract. Their position was that they didn't know about the damage and its not their fault her inspector missed it. They ended up refunding half and it wasn't worth it to go after the rest in court. Quote Link to comment Share on other sites More sharing options...
EasyEJL Posted October 22, 2015 Report Share Posted October 22, 2015 Oh yeah, but virtually every contract has a clause that you get your deposit back if you can't get financing for the purchase price and if there was termite damage most banks will refuse a loan till its fixed. Quote Link to comment Share on other sites More sharing options...
blue109 Posted October 22, 2015 Report Share Posted October 22, 2015 It was a mess and drug out for months. I know they tried different angles but couldn't get out without court. I got scammed out on my first home buying attempt on a short sale. Upon reflection, it seems the guy never had any intention of leaving, just buying himself time with the bank at others expense. Just trying to advise that you really need to watch yourself in this industry. Lots of shadyness. There are great people as well. I still text my realtor and BS with him from time to time. He got me into a sweet house for $20k less than I wanted to offer. Spent tons of time setting up my inspections for me. Pulled permits at city hall. Was a huge help. Quote Link to comment Share on other sites More sharing options...
imschur Posted October 23, 2015 Author Report Share Posted October 23, 2015 Well the Realtor told us to RUN from that property at all costs. We didConnecticut is just so damned expensive . We were trying to stay $200k and under. Just doesnt seem realistic. $225-$240 appears to be the conclusion my girl needs to arrive at if she wants anything 3/4 acre or more. Im under the gun to find a place and she doesnt want to be more than 10 minutes from her 80 year old parents. Im starting to feel I will be homeless soon. Quote Link to comment Share on other sites More sharing options...
shepp Posted October 23, 2015 Report Share Posted October 23, 2015 Well the Realtor told us to RUN from that property at all costs. We didConnecticut is just so damned expensive . We were trying to stay $200k and under. Just doesnt seem realistic. $225-$240 appears to be the conclusion my girl needs to arrive at if she wants anything 3/4 acre or more. Im under the gun to find a place and she doesnt want to be more than 10 minutes from her 80 year old parents. Im starting to feel I will be homeless soon.200k would get you 5 acres in the country here :) Quote Link to comment Share on other sites More sharing options...
DNP Posted October 23, 2015 Report Share Posted October 23, 2015 Lol$225. Don't come this far west when you move...do not pass Arizona My my wife keeps sending me houses. I had to asks her to start looking cheaper. We would like 5 acres here. Everything she sends is 650-700. It's my job to figure out how to afford it. Anyone need a couple kidneys? Quote Link to comment Share on other sites More sharing options...
shepp Posted October 23, 2015 Report Share Posted October 23, 2015 Lol$225. Don't come this far west when you move...do not pass Arizona My my wife keeps sending me houses. I had to asks her to start looking cheaper. We would like 5 acres here. Everything she sends is 650-700. It's my job to figure out how to afford it. Anyone need a couple kidneys?makes me love the Midwest, I could get some damn nice property for that. Quote Link to comment Share on other sites More sharing options...
EasyEJL Posted October 23, 2015 Report Share Posted October 23, 2015 if she wants anything 3/4 acre or morethat does make it a little harder Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.