Another Frustrated House Offer

Yesterday I made an offer on a house. Price was high, nearly three times the assessed value in a market where houses are barely selling at two times the AV. Couldn’t figure out what was up with that. I really liked the house, great layout, really good yard space. Did need all new windows and a bathroom update; few other issues that could be resolved.
Owners are relatively newly married (3 years) – he an airline pilot and she a dentist. They do make a lovely couple. She is pregnant (ultrasound framed and sitting on the living room coffee table).
But they are underwater on the mortgage! They can’t go down on the price. It is pointless. No one will overpay that much for a house in Redford!
Maybe instead of a big wedding and honeymoon they should have paid down their mortgage! No I didn’t snoop – the photos are all over the house! You may have such a great love, but it carries great debt.
I’m just so bummed about this housing market. At least I’m not the one underwater or foreclosed on, so it could be worse.
I’m disgusted by other people living beyond their means. Buying houses they couldn’t afford and then taking out home equity loans.
A pilot and a dentist for drying out loud! We are only talking a house that cost them $165,000 in 2001. The value has fallen to $104,000, and will fall more.
I’m so exasperated with looking for a house.

Comparable Houses?

Saw the other house with Derek tonight. This is the one the owner’s were getting ready to list, and he had them make the house available to me even though they weren’t quite ready. And it was as I feared – didn’t like it. They may have put a lot of money into the house, but they still ended up with cramped baths and a poorly laid out kitchen. Added plenty of high-end up grades, but it doesn’t overcome a poor floor plan. This house has 1,600 square feet! You shouldn’t be banging the bathroom door into the toilet!
So if the other house is still available, I will put in my offer on that short sale house.
Need to get happy pills from my doctor. It will be a stressful 45-60 days. Bank of America is not reputed to process short sales with any expediency. Misery for the home owner and the prospective buyer. Big opportunity for investors.
Asked Derek to verify that homeowner is in default on payments.
I am making concessions because I want my own home, my own paint colors with my old furniture comforting me, a yard for Fannie. And a separate area for the cat litter box.

Another Day, Another House

Derek came through. He is a distressed property expert. Not sure who really certifies that, but he explains the process well and the problems. This is most of his business – short sales. He will not take foreclosure listings from banks. The banks look for the cheapest player on those and generally get newbies or agents with not much business.
So we viewed the house. Floor plan is pretty much like the one I put an offer on, but about 200 sq ft smaller, which is made up for by the finished basement. I can live with less space as long as there are walls to put pictures and furniture.
It is a short sale. Here is the problem: they take time to process. Mortgage held by Bank of America, reputed to process these very slowly like 3-4 months. Derek says we put a time frame on agreement, if we can get sneak it past the listing agent, for a reply in 45 days. Then I take my deposit and am done to look.
Then I’m left with 30 days on the apartment lease and need to find a home. Really don’t want to have to extend the lease any. Would prefer to find a house into which I can move the storage units stuff and start working on. Can also move in the pets and reduce the extra $50 monthly paid for pets.
Derek also has a property he is getting ready to list that he wants me to see. Tells me it is perfect for me. Trying to get the owners to move on readying the house.
Of course the other home has had several viewings, and one realtor has said he will present offer, but nothing happened.
Pressure! Don’t want to lose another – it’s too damned depressing.

Oh Derek Have you Forsaken Me

Knew it was too good to be true. They all want you in the beginning, realtors, eager like dogs in heat. Today I asked for his thoughts on guidelines on how much lower to bid below a list price on a house. I emailed him this morning.
Oh, yeah, I got a fast reply. I’m busy. I’m on the road. I need to get back to the office and give you a reply – this afternoon!
Well what time zone are you in? This afternoon waiting for the solar eclipse? Well ya got the wrong day!!
Look at the time, it is Friday night! Oh, maybe you forgot to specify the afternoon of what day?
Think I’m too demanding?

FHA Works Its Magic

I lost out to a FHA 203k loan! Instead of my low bid cash offer the bank went for the government guaranteed loan. End result is the bank gets more money: higher price and interest on the loan.
It also helps the bank look good with CRA requirements. You know, banks have to prove that they are reinvesting the money in communities where they don’t offer banking services. So they devise all these ‘projects’ for a department usually headed by a minority person, so they also get credit for hiring minorities.
203k is intended to help distressed communities with foreclosed housing. Allows a buyer to buy a home with only 5% down. And the renovation costs needed to bring the home up to standard are added to the loan. Most all foreclosed homes have been gutted in some way.
Here’s the problem: this home on Riverside is in a well established, stable, upscale Livonia neighborhood. There is no glut of foreclosed homes. This home would have sold on it’s own to a normal buyer. Chase bank is also in the community, with bank branches.
What a waste of a program. Meanwhile really distressed homes in depressed areas go unsold. FHA is allowing someone to move into a prime area with government guarantees. It is a misuse of the program. Maybe I should look into a 203k instead of paying cash. The cash can cover my payments, along with my 401k that I will soon be able to draw on.

Depressed Home Buyer

Yes, I’m depressed. I live in an apartment where curry scent permeates the air outside. My upstairs neighbor sure does shower for long periods of time – 25 minutes. I consider that LONG. The guys demolishing the commercial property behind the carports work at very odd hours with their hammers, hydraulics equipment, drills, etc. There is no yard for the dog, I have to walk her all the time, and damn but I wish she would pee on command! How can she hold it that long!
And I miss my possessions. I want to do things but most of my stuff is in boxes in storage. Remember how often you amble over to grab a book off the shelves to check some info? Or take the atlas to look at the location of some place. I can’t. And all those little projects I worked on, well the fixings are somewhere, in a box, in a drawer, in a container, in the storage unit.
I believe I lost the bid on the foreclosure because of Larry Realtor. He didn’t tell me that making an offer on a foreclosed property is like bidding at a silent auction. You have no idea who else is bidding and at what amount. They don’t disclose anything. So if the deal with financing falls through I may get another chance. Larry is such an optimist; I’m not, in case you didn’t notice.
And that other new listing I found in week 2 of waiting to hear the status of my offer, found out it has an offer pending. Has to be approved by Probate court so who knows what will happen.
Unlike other house purchases I have a fixed amount of money. There is no money money that I will earn to add to remodeling or improvements costs.
I’m in doubt about every property. I want it perfect. I will not find perfect. Will I be able to compromise?
This morning I drove past 6 properties that looked good online but in person, neighbor bad, no backyard, no garage, very tight lot.
Maybe I need to take a long bike ride.

Realtor Rant

They are such easy targets, aren’t they? Just like other professions who earn they money solely based on commissions. They get a reputation, usually not good. Does it change people into looking for the bottom line all the time, or does it attract people who are lured because of that bottom line payoff.
I know when the bank increasingly pushed us for revenue, higher sales goals, I got less discriminating over selling products. There were sales competitions and I had to place, beat the other guy or I might be out. So I sold foreign currency accounts, convinced little companies whenever possible, even though it wasn’t lucrative business for us. I had to get customers, had to score sales.
So I’m going to vent some of my realtor experiences. Let me make clear I worked with two good ones (over 24 years, 5 houses). Maggie is an old-time realtor who knows her territory in detail; sold most the homes and knows everyone. But she is getting old, husband has medical problems, and isn’t readily available. And then there is Earnie, who sold my last house. He is a land development, also old school older guy. And even though he has a Korean wife who didn’t speak English when they married, he knows is real estate stuff.
What have I experienced?
Realtors who don’t understand the paperwork, be it normal contract, foreclosure, or just that you can’t pencil in stuff in the margins.
The big franchise based real estate companies. They gobbled up the small companies that actually knew areas. Now they assign staff to work in whatever office, no matter where the agent lives. And of course all their agents are really well qualified and experienced if you ask.
You’ve got email, cell phone, office voice mail. You think you could answer messages on one of them?
They love you when they take the listing but then try and see them again.
Too many of the women are just flitty and ditzy – they can’t think straight and get everything more confused.
Giving me a pile of listings is not really helping me find a house. I give you an idea of what I’m looking for and you find appropriate properties.
Whether buyer or seller agent, they all seem to most represent themselves. The transfer of property is an archaic system that needs to be overhauled.
I’ve had realtors who couldn’t find the house because they got the address confused and misplaced my telephone number. Meanwhile I’m waiting for them to show up to list the house for sale. They can’t call their office? They don’t have a cell phone to call information for my number? And this is a highly respected local realtor.

The Chase is On

Oh yes, now I see what all the blogs talk about re buying foreclosed properties. It’s their way on the highway. Chase writes sloppy documentation, refers to Pacific Daylight Time on documents handled in Michigan. Coldwell Banker realtor continues to have internet/email problems. Result of all this – we got their counteroffer AFTER the expiry time.
So the jist of reviewing Chase’s ‘counteroffer’ is: you do it our way no questions asked. It is not a counteroffer. The Coldwell Banker listing agent should have told my realtor that they have their own instructions re REO offers. It was a waste of everyone’s time for us to present what we thought was a serious real estate purchase offer.
I spent over 25 years working with documentation. Now that people have spell check why are there so many typos in everything? Back when we had to actually proofread documents NO mistakes were allowed.
And the fine print pretty much says nothing will work to your advantage and good luck getting your deposit back timely if the deal falls through.
Among the glaring discrepancies on the documentation: earnest money deposit must be received within 24 hours and also 48 hours.
I spoke to any attorney (without a fee! – real estate attorneys seem better about doing that) and he summed it up succinctly. Until you get them to agree on price nothing else matters. And for REO properties, it is a commodity. The bank doesn’t give a shit about anything; they haven’t even seen the house. Give them an amount they like and they’re done.
Well I countered for $5,000 more than my initial offer. Because improvements have to be done, like installing an entire kitchen, I don’t want to pay what they’re asking. And I don’t want to use up all my funds from the sale of my house.
Meanwhile, I got another house lined up to view. It was nice but you can’t fall into the trap of wanting it so-o-o-o much you will pay more than you think it reasonable.
And right now mine is the only offer. House has been on the market 6 days, and month end is coming up. I’m hoping the bank wants to put a sale on their books. If they don’t take my offer they likely won’t be able to do it for the month of June.

Home on the Range

I made an offer on a house! Found a great foreclosed property the first day it was listed. Wonderful subdivision, backs to a ravine, great floor plan. I can actually envision living in this house with my worldly possessions and Fannie and the cats (and the bird).
Now just have to wait to hear from the bank. Gonna get nervous and I ponder the possibility of a second offer coming in.
The house doesn’t have some problems that go with foreclosure. The owners were angry. They left the bathroom fixtures but took the kitchen sink, and all the appliances and cabinetry. They also removed knobs off the closets, took some doors and damaged others. Slit the screens in the porch. In taking out the kitchen cabinets they damaged the ceramic floor.
Still, the asking price is less than the purchase price in 2006. Sad they only had less than 4 years in the house; bought it at the peak of the bubble.
But the backyard includes part of the hillside down to the ravine! That’s exciting. Can do some interesting landscaping.
Think it is US Bank holding the mortgage. Gonna see if the cash offer incents them to get this inventory off their books, quick.

House Hunting

I’m getting depressed. Perhaps I’ve already gotten there.
I’ve got 3 builders I’ve contacted re the house I’m interested in that news work. None have returned my calls. Granted, one has to be contacted through his sister who I doubt even talked to him yet.
I’m now going back through the reject pile re-evaluating houses. When I find something I might want to look at, it has a bid on it – contingent showing status.
Hard times, eh, when homes supposedly aren’t selling, I don’t find realtors to be very aggressive or men wanting construction work to be go-getters. They want work but don’t want it to interfere with their other activities – free time, playing with the kids, etc. They’ll call me back on their cell phones when they are at some job site working, right?
Plan B? I need to find a house to rent. I have 3 1/2 months yet. Here I have cash to buy a house and am paying monthly rent. It is costing me. On the bright side, come August I can start drawing on my 401k/IRA. That will be my income.
Oh yes, I know I am still so much better off than so many others. But I worked and saved! I did not buy expensive cars or wardrobe or take extravagant vacations or eat out all the time.How do I tell Larry the Realtor that I want to move on. He shouldn’t send me any more new (not that new any more) listings. I don’t feel he understands my needs. Maybe we need couples therapy.
And of course there is my mother always really with unsolicited tips on what I should do. “You can buy a house to fix up. You don’t have anything else to do!”
“If the price is right, you can put money into a house.”
This all from a woman who never buy a house or remodeled one. And I’m twenty years older than last time I did the fix up bit.