topic Re: Praying for a miracle! Lol in Mortgage Loans

Praying for a miracle! Lol

GirlMelanie89 — Thu, 25 Feb 2016 21:06:09 GMT

Well, the townhouse I have had my eyes on for months just reduced its asking price from $124,500 to $114,900!!! It’s a foreclosure in move in condition and would be a great starter home, but my scores are not cooperating and my 2 year discharge date isn’t for another 2 months. I'll be devastated if someone buys it, but expectation leads to disappointment.

Anywho, I do have questions...

is it possible to negotiate the asking price on a foreclosure?

Since the seller is technically the bank, is it possible for the bank to pay or contribute to closing cost?

What advice do you have for buying foreclosures?

There's an exact townhouse that looks exactly like this one priced at $129,000 and has been on the market for 310 days, should I just go for that one in May?

Any other comments, advice, etc are welcome!

Re: Praying for a miracle! Lol

jd403 — Fri, 26 Feb 2016 02:27:28 GMT

@GirlMelanie89 wrote:
Well, the townhouse I have had my eyes on for months just reduced its asking price from $124,500 to $114,900!!! It’s a foreclosure in move in condition and would be a great starter home, but my scores are not cooperating and my 2 year discharge date isn’t for another 2 months. I'll be devastated if someone buys it, but expectation leads to disappointment.

Anywho, I do have questions...
is it possible to negotiate the asking price on a foreclosure?
Since the seller is technically the bank, is it possible for the bank to pay or contribute to closing cost?
What advice do you have for buying foreclosures?
There's an exact townhouse that looks exactly like this one priced at $129,000 and has been on the market for 310 days, should I just go for that one in May?

Any other comments, advice, etc are welcome!

Have you asked TU, EQ & EX for an early deletion on the discharge? I'm not positive on the length of time but I know they will work with you if it is within a certain amount of time.

Re: Praying for a miracle! Lol

GirlMelanie89 — Fri, 26 Feb 2016 02:31:08 GMT

Lol. I have a long time before my BK will fall off. But to qualify for an FHA loan, you have to be 2 years post discharge. But patience is key.

Re: Praying for a miracle! Lol

jd403 — Fri, 26 Feb 2016 02:47:58 GMT

that's what I get for reading on my phone

Re: Praying for a miracle! Lol

GirlMelanie89 — Fri, 26 Feb 2016 03:21:49 GMT

Lol. Happens to me all the time!!!!

Re: Praying for a miracle! Lol

Imperfectfuture — Fri, 26 Feb 2016 04:49:54 GMT

Most.offers are dependent on loan approval. If you can not pre approve, you will not approve. The contract is written up after pre approval. Some can skip this process with nice mortgage scores. You have work to do.

Foreclosures usually work with some cash down. If you do that before contract approval, and are then denied, you lose this money. Take an on line homebuyers course. I did the one by ehome, the top recommended by USDA. You will find most of these questions answered, and the process, with a home buyers course.

In the interim, wait for your scores to update, then call around to programs and lenders. They will help you by pre quality over the phone with out pulling credit. Just be honest, and realize that the actual approval may not happen.

Re: Praying for a miracle! Lol

GirlMelanie89 — Fri, 26 Feb 2016 12:21:43 GMT

Lol. I don't plan on doing anything before getting at the very least pre-approved. I'm going to see a LO this morning. I have no choice to wait for my scores to update because my BK 2 year anniversary isn't until May anyway. I was just curious and I like to be informed ahead of time. One thing about this forum, it provides one with information to avoid setting themselves up for disaster. I'm sorry if my post was misleading.

Re: Praying for a miracle! Lol

StartingOver10 — Fri, 26 Feb 2016 12:36:12 GMT

Yes, it is possible to negotiate the price on a f/c. Depends upon the market where the property is located. Some asset managers price the asset (property) high relative to the market and others price the asset low to gain attention and to get multiple offers above list price. Talk with your agent to see where this one is in the market based on its condition and the price of the others and their condition.

Yes, asset managers will accept offers with a seller concession. The max is 3% of contract price toward buyers costs. Some of the f/c properties have the buyer pay additional costs to close. For example, fannie mae won't pay doc stamps and they push that cost over to the buyer. You need to find out what your total cost will be on that particular property. The listing agent usually posts the information in the document section of the MLS that your Realtor can access.

By the way, do not make an offer using the listing agent as your agent on a foreclosure. In foreclosures the listing agent has a fiduciary duty to the seller only, even at buyers expense. You need an agent to help you navigate the f/c process and get as good a price as you can get on the f/c so find a buyers agent to work with that is not the listing agent and preferably doesn't work in the listing agents office.

As to losing funds if you don't qualify for financing - almost all of the contracts have a finance contingency clause where you would get your EMD back. There are a few contract forms with some lenders, mainly auction types, that have fees that are non-refundable (Hubzu is big on keeping those deposits). So make sure to read whichever contract and addendum you are to sign before you sign so you know your exposure.

Re: Praying for a miracle! Lol

GirlMelanie89 — Fri, 26 Feb 2016 12:58:31 GMT

@StartingOver10 wrote:
Yes, it is possible to negotiate the price on a f/c. Depends upon the market where the property is located. Some asset managers price the asset (property) high relative to the market and others price the asset low to gain attention and to get multiple offers above list price. Talk with your agent to see where this one is in the market based on its condition and the price of the others and their condition.

Yes, asset managers will accept offers with a seller concession. The max is 3% of contract price toward buyers costs. Some of the f/c properties have the buyer pay additional costs to close. For example, fannie mae won't pay doc stamps and they push that cost over to the buyer. You need to find out what your total cost will be on that particular property. The listing agent usually posts the information in the document section of the MLS that your Realtor can access.

By the way, do not make an offer using the listing agent as your agent on a foreclosure. In foreclosures the listing agent has a fiduciary duty to the seller only, even at buyers expense. You need an agent to help you navigate the f/c process and get as good a price as you can get on the f/c so find a buyers agent to work with that is not the listing agent and preferably doesn't work in the listing agents office.

As to losing funds if you don't qualify for financing - almost all of the contracts have a finance contingency clause where you would get your EMD back. There are a few contract forms with some lenders, mainly auction types, that have fees that are non-refundable (Hubzu is big on keeping those deposits). So make sure to read whichever contract and addendum you are to sign before you sign so you know your exposure.

Man this was a very informative response! You Rock @StartingOver10! I will take all of this advice and apply it towards the process if I get a pre-approval. Thank you so much!!!

Re: Praying for a miracle! Lol

Anonymous — Fri, 26 Feb 2016 20:15:42 GMT

@GirlMelanie89 wrote:
Well, the townhouse I have had my eyes on for months just reduced its asking price from $124,500 to $114,900!!! It’s a foreclosure in move in condition and would be a great starter home, but my scores are not cooperating and my 2 year discharge date isn’t for another 2 months. I'll be devastated if someone buys it, but expectation leads to disappointment.

Anywho, I do have questions...
is it possible to negotiate the asking price on a foreclosure?
Since the seller is technically the bank, is it possible for the bank to pay or contribute to closing cost?
What advice do you have for buying foreclosures?
There's an exact townhouse that looks exactly like this one priced at $129,000 and has been on the market for 310 days, should I just go for that one in May?

Any other comments, advice, etc are welcome!

I bought a foreclosure condo over the Summer from a bank and got a super deal. I offered the price they were asking for and it was accepted. Other bidders were investors, and they didn't want to sell it to an investor. The condo appraised for $8,000 more than the asking price. Since the prices of homes has increased so much in South Florida my $110,000 investment is worth about $130,000 now. The only caveat about purchasing a condo is dealing with the HOA. Depending on what type of loan you're getting the HOA has to meet Freddie/Fannie condo guidelines if your lender plans to sell the loan. Another caveat, a foreclosure doesn't inheret Homestead Exemption from the previous owner.

Re: Praying for a miracle! Lol

GirlMelanie89 — Fri, 26 Feb 2016 23:33:20 GMT

@Anonymous wrote:
@GirlMelanie89 wrote:
Well, the townhouse I have had my eyes on for months just reduced its asking price from $124,500 to $114,900!!! It’s a foreclosure in move in condition and would be a great starter home, but my scores are not cooperating and my 2 year discharge date isn’t for another 2 months. I'll be devastated if someone buys it, but expectation leads to disappointment.

Anywho, I do have questions...
is it possible to negotiate the asking price on a foreclosure?
Since the seller is technically the bank, is it possible for the bank to pay or contribute to closing cost?
What advice do you have for buying foreclosures?
There's an exact townhouse that looks exactly like this one priced at $129,000 and has been on the market for 310 days, should I just go for that one in May?

Any other comments, advice, etc are welcome!
I bought a foreclosure condo over the Summer from a bank and got a super deal. I offered the price they were asking for and it was accepted. Other bidders were investors, and they didn't want to sell it to an investor. The condo appraised for $8,000 more than the asking price. Since the prices of homes has increased so much in South Florida my $110,000 investment is worth about $130,000 now. The only caveat about purchasing a condo is dealing with the HOA. Depending on what type of loan you're getting the HOA has to meet Freddie/Fannie condo guidelines if your lender plans to sell the loan. Another caveat, a foreclosure doesn't inheret Homestead Exemption from the previous owner.

Excellent info! And thats awesome!!! Sounds like you came out on top!!! And very good, valid points to tak into consideration! Thank you!