Homeowners?

[pio]

I know its not tech related, but I'm sure at least SOME of you folks are probably home owners.  Anybody here happen to know anything about buying HUD pre-foreclosed homes?  I found a STEAL of a deal on a 2.5 acre property.  3br house on the lot.  Looks to be a farm type property, I see what looks like a horse corral and fencing in the satellite pictures.  I'm just curious what all things I need to be asking, and what all steps I should be taking here.  I've contacted my realtor, she wants to get me pre-approved first, but I have a feeling I'm likely going to need a co-signer first.  Not sure.  But guys, its a $67k house, 1440 sq ft, on 2.5 acres........I'm sure I can find a way to get that kind of a loan somewhere.  Apparently it last sold for $149k in 2016 and is currently valued at $221k.  So really, a loan would be money in the bank to any banks that'd finance it.  Shoot, I could pay that off in 5 years time no problem!  The only hangup is going to be my credit, its not the greatest. -_-  Ex wife problems.

Sorry, just excited but also trying not to get my hopes up too high lol.

[ENTERPRISE]

I am a homeowner, however the process in the UK is very different so I cannot offer much advice. However at that price that certainly would be a steal. So far as financing it, do you not have mortgages over there ? 

[Diffident]

Get advice from your Realtor.  Your Realtor will setup a home inspection if you decide to buy it.   But that seems really cheap, where I am the land alone would be worth more than the $221k.

 

HUD's Pre-Foreclosure Sales Program - Zillow

WWW.ZILLOW.COM

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For homeowners with FHA-backed loans, the U.S. Department of Housing and Urban Development's short sale program can provide a...

 

[Cerberus]

you wont get pre-approved in the US with a TransUnion score of less than ~590 (if you did I wouldn't, APR is probably going to be through the roof)

 

 

[Avacado]

If money isn't the problem, but credit is, having a LARGE down payment can help. If you say you could pay it off in 5 years, then it shouldn't be an issue. Interest rates are hovering in the mid 3's now. If you can find a co-signer that trusts you, go for it. I don't know what the market is like out there on the West coast, but here in Asheville the cheapest available home in my county is a single wide trailer for 259k. 

[BWG]

Well, someone was nice enough to reach out to me and point out this thread. FHA, VA, or USDA financing are the most lenient loans for you to obtain with some credit issues. Have you viewed the HUD Appraisal Online (HomePath) to see what type of FHA Financing the home is eligible for? It would either say FHA 203b (standard FHA loan) or 203k (FHA Rehab Loan). The down payment would be as low as 3.5% of the purchase price on FHA. I lean toward FHA because it's more common (open to anyone to use) whereas VA requires an entitlement (length of military service/honorable discharge) and USDA restricts the property location/income (VA/USDA are 100% financing with no down payment though).

 

Most lenders cut off the credit score at either 580 or 620. They will use the middle score of all 3 scores. For example, if you have a 630, 620, and 500, they will use 620. If you have no personal derogatory credit in the last 12 months, and you pay some of your own bills reporting to credit for 12 months or more, there's a chance you'd be approved. You could document extenuating circumstances for derogatory credit on your report from your ex, and even better, if the divorce decree/separation agreement say those debts were her court ordered liability, you're pretty much good.

 

Usually, those auctions require a large non-refundable deposit be placed on the home at time of auction. (10% is common). It's very high risk for you to attempt to purchase a home needing repairs like this. There are very limited options for rehab loans, other than FHA 203k, for someone with low credit scores and derogatory credit. Another issue would be the value of the home vs the value of the land. If the land exceeds a certain % of the overall value, that could be problematic, but can usually be resolved by excluding the value of the excess land which sounds doable at the price it's at.

 

Government Agency loans rarely hit you hard on interest rate adjustments, so your rate would not be terrible, and your APR would be about the same as someone with a 740 credit score. Conventional loans are the opposite though.

 

I'm a Mortgage Underwriter for a bank and have been either Originating, Processing, or Underwriting mortgages since 1999. Discord me for more details. I'll help you out, buddy! Also, you do need to obtain a pre-approval in which you submit all of your income, assets, derogatory credit explanations, etc. to an Underwriter to review and either approve or decline your request. I'd be happy to look at credit karma or whatever self-pulled report to give you my guidance in more detail.

Edited March 9, 2022 by BWG

[pio]

Yeah I'm going to be calling my realtor here in about 20 minutes.  The price absolutely IS too good to be true, and I'm sure its probably a mistake or something.  There's no way I could get that lucky lol.  However, for $67k, its worth a shot to look at anyway.  The land itself is worth approximately the $67k all on its own.  My parent's quite literally JUST bought 4 acres a 0.5 mile away for $150k, bare land.  This is 3 acres for 67k with a double wide already on the property.

I'm not entirely sure yet about the property, but it looks like an old junk collector had the property previously as there's like 20 cars parked on the property on google satellite images.  My guess is that the previous owner ran into money problems, they started selling their cars (I saw empty spots on the satellite images), and had problems paying their mortgage so they took it over.  That's my guess.....but again, I don't know till I contact my realtor.

 

@BWG, yeah I'll hit you up on discord or steam here in a bit if you're online!

[damric]

That sounds like a good deal, but if you can't get it, don't worry so much.

 

As far as ex's and bad credit. I know all about that. Around 2009-2010 years ago my credit started to tank due to some bad life decisions. I had lots of unsecured debt, like credit cards, and I was being sued. About 4 years ago I decided I was going to try and fix my credit. I got something called a secured credit card from my credit union. It was just for like $200 or something small I don't remember, but I had to put that money down. Then I had to use the card once in a while, and make payments for 1 year to get the $200 back and the card to become unsecured. They really liked me so they actually let it go in 6 months and they raised the limit to $600 (and they put the 200 back in my savings). From then on I would buy something every month, and always make more than the minimum payment every month. Then every year they raised the limit (I have never asked). Now it's like $5k, a good interest rate, and I just checked my credit and it's pretty descent again, around 785. I think a lot of the old trash in my credit report finally started falling off.

 

I was also one of the one's who was affected by the equifax breach. I still can't even log in to even check that out and dispute stuff yet. I guess they are still figuring that out for those affected, but I try and check it from time to time to no avail.

[pio]

51 minutes ago, damric said:

That sounds like a good deal, but if you can't get it, don't worry so much.

 

As far as ex's and bad credit. I know all about that. Around 2009-2010 years ago my credit started to tank due to some bad life decisions. I had lots of unsecured debt, like credit cards, and I was being sued. About 4 years ago I decided I was going to try and fix my credit. I got something called a secured credit card from my credit union. It was just for like $200 or something small I don't remember, but I had to put that money down. Then I had to use the card once in a while, and make payments for 1 year to get the $200 back and the card to become unsecured. They really liked me so they actually let it go in 6 months and they raised the limit to $600 (and they put the 200 back in my savings). From then on I would buy something every month, and always make more than the minimum payment every month. Then every year they raised the limit (I have never asked). Now it's like $5k, a good interest rate, and I just checked my credit and it's pretty descent again, around 785. I think a lot of the old trash in my credit report finally started falling off.

 

I was also one of the one's who was affected by the equifax breach. I still can't even log in to even check that out and dispute stuff yet. I guess they are still figuring that out for those affected, but I try and check it from time to time to no avail.

Oh I've already started credit "repair", I just derped and kinda spent too much of it.  $450 card and paypal credit (ebay addiction screwed me on that one ).  If I pay both of those off, which is easy peasy, I noticed my score boosts immediately up to like 680-700 on my credit karma.  

 

Talked to my realtor today, and she's not entirely hopeful about that house, seeing as its in "preforclosure", which apparently just simply means the home owner is 30 days delinquent.  I'll be keeping my eyes peeled on it.  Realtor said she's going to send them a letter with her business card to see if they're interested in selling it to me, so we'll see.  I guess she's going to continue looking for me to see if she can find my dream home.  I don't care that much, running water, electricity, and a functional roof is all I really require....and land, I want a few acres.

[Diffident]

19 hours ago, pioneerisloud said:

Oh I've already started credit "repair", I just derped and kinda spent too much of it.  $450 card and paypal credit (ebay addiction screwed me on that one ).  If I pay both of those off, which is easy peasy, I noticed my score boosts immediately up to like 680-700 on my credit karma.  

 

Talked to my realtor today, and she's not entirely hopeful about that house, seeing as its in "preforclosure", which apparently just simply means the home owner is 30 days delinquent.  I'll be keeping my eyes peeled on it.  Realtor said she's going to send them a letter with her business card to see if they're interested in selling it to me, so we'll see.  I guess she's going to continue looking for me to see if she can find my dream home.  I don't care that much, running water, electricity, and a functional roof is all I really require....and land, I want a few acres.

You should be doing the looking.  Go to Realtor.com enter your price range, area's you want to live. When you find one you like, tell your Realtor and she'll arrange a time to see it.

[pio]

Just drove by the house tonight. Somebody with deep pockets is looking at it too.

 

I get the feeling it's a flipper. 

 

Guess I'm not getting a house like this. My realtor said she'll drive out there tomorrow, but that doesn't help if someone else is already on it. Ugh. 

[pio]

In case anyone is following along.....I'll go ahead and update......

 

I wrote the owner a letter today, going to mail it off tomorrow.  Apparently since its "pre-foreclosure" the home owner can still make it right with the bank and keep it, OR sell it at this point since the bank hasn't siezed it....... yet.  I wrote him / her, letting them know I was interested if they were interested in selling, and that I wasn't a house flipper, I wanted it to live in because my family is very close by and I'd really enjoy the house and property.  So.....we'll see if I hear back from them next week or not.  It's going in the mail first thing tomorrow.

 

In the meantime, my credit isn't QUITE where it needs to be to get an FHA loan, however its really REALLY close.  5 points close.  So, with my payments to my credit next payday, that SHOULD bump me up over that borderline mark, but we'll see.

 

The foreclosure on that property states they owe around $67k.  If I have to deal with the owner to actually buy it, I doubt they'll let it go for what they owe......but I might score it for less than its worth at least.  According to various pages and similar listings nearby, it should be realistically worth right around 200k, and that's about the top of my budget range.  Soooo even if they're asking a realistic / fair price on it, I "should" still be able to get it, if they're willing to sell that is.  So, not giving up hope just yet!

Edited March 12, 2022 by pioneerisloud

[ENTERPRISE]

Good luck bud !

[Sir Beregond]

I'd love to be a home owner, but median house price in this area are like $650k now, which is up about $23% from last year. Heck pieces of crap houses with bars on the windows in the worst areas of town are now in the $400's lol.

[UltraMega]

Housing will be a civil rights topic in 2040 when the housing market collapses, if not sooner, to totally automated/remote work. Businesses are already struggling to keep their building investments viable. 

 

Social progress is a step ladder, with ups and downs, and that said I see this as an economic turn. The world cannot sustain and that plateau is within a 5 year prediction, my prediction... I'm just not that wizard.

 

Actually I've learned a ton about day trading lately. It's my personal goal to get started on a robust day trading account. The more I learn about stocks, the more I lean towards day trading. 

 

 

That said, I think the housing market will collapse before it picks back up. 

Edited March 13, 2022 by UltraMega

[pio]

19 minutes ago, UltraMega said:

Housing will be a civil rights topic in 2040 when the housing market collapses, if not sooner, to totally automated/remote work. Businesses are already struggling to keep their building investments viable. 

 

Social progress is a step ladder, with ups and downs, and that said I see this as an economic turn. The world cannot sustain and that plateau is within a 5 year prediction, my prediction... I'm just not that wizard.

 

Actually I've learned a ton about day trading lately. It's my personal goal to get started on a robust day trading account. The more I learn about stocks, the more I lean towards day trading. 

 

 

That said, I think the housing market will collapse before it picks back up. 

I think so as well.  I'm not looking at overpriced $300-500k homes though either.  I'm trying to find a used probably double wide on a few acres.  So long as I'm spending at or under $200k, it's going to stay affordable for me to pay for it for well into the foreseeable future, and the price of the land itself should raise in value long term.  Yeah, my $200k house might drop to $50k in a worst case bubble pop scenario.  However I also don't see how you can put a price on full on freedom from the rental grinch.  Besides, in a "normal" financial situation, those properties would actually still be worth between $100-150k, so if the markets just simply correct themselves, I won't be overspending too terribly much either.  I'll be staying long term, like very long term, so overall it'd actually end up being LESS monthly cost for me than renting as is right now.

 

If this guy I sent the letter to doesn't respond or whatever, then so be it.  I was actually kind of waiting for the crash before seriously looking to buy anyway.  It's just THIS house, is seriously just about perfect in almost every way.  Not too big, not too small.  Both the house and the land.  Right next to family.  Right next to a good school for kiddo.  I'd save money compared to renting as is right now.  One day I could build a racetrack and drag a couple beater cars home, and nobody can stop me........things like that.  

 

I have put a lot of thought into all of this already, and I agree right now is a terrible time to be looking to buy a home.

Edited March 13, 2022 by pioneerisloud

[UltraMega]

46 minutes ago, pioneerisloud said:

I think so as well.  I'm not looking at overpriced $300-500k homes though either.  I'm trying to find a used probably double wide on a few acres.  So long as I'm spending at or under $200k, it's going to stay affordable for me to pay for it for well into the foreseeable future, and the price of the land itself should raise in value long term.  Yeah, my $200k house might drop to $50k in a worst case bubble pop scenario.  However I also don't see how you can put a price on full on freedom from the rental grinch.  Besides, in a "normal" financial situation, those properties would actually still be worth between $100-150k, so if the markets just simply correct themselves, I won't be overspending too terribly much either.  I'll be staying long term, like very long term, so overall it'd actually end up being LESS monthly cost for me than renting as is right now.

 

If this guy I sent the letter to doesn't respond or whatever, then so be it.  I was actually kind of waiting for the crash before seriously looking to buy anyway.  It's just THIS house, is seriously just about perfect in almost every way.  Not too big, not too small.  Both the house and the land.  Right next to family.  Right next to a good school for kiddo.  I'd save money compared to renting as is right now.  One day I could build a racetrack and drag a couple beater cars home, and nobody can stop me........things like that.  

 

I have put a lot of thought into all of this already, and I agree right now is a terrible time to be looking to buy a home.

 

let us know what u find out. 

Edited March 13, 2022 by UltraMega

[ENTERPRISE]

14 hours ago, Sir Beregond said:

I'd love to be a home owner, but median house price in this area are like $650k now, which is up about $23% from last year. Heck pieces of crap houses with bars on the windows in the worst areas of town are now in the $400's lol.

It can happen, but it's not easy with house prices being completely inflated to the point of insanity. Im 33 and have only owned my house for the past year. Compared to my parents who owned there hows at about 18/19. 

 

I was lucky as I was living at home, but in an annexe. So I could save etc but if I was renting and trying to save.....forget it. No way I could have done it. I had to borrow money as well to make it happen as my parents are working class, my dad is a musician...so yeah, no money coming from family. Which I didn't ever expect anyway as I didn't expect people to path the way for me. 

 

That being said, I had a kind helping hand, to which im forever appreciative.

[Diffident]

6 hours ago, pioneerisloud said:

I think so as well.  I'm not looking at overpriced $300-500k homes though either.  I'm trying to find a used probably double wide on a few acres.  So long as I'm spending at or under $200k, it's going to stay affordable for me to pay for it for well into the foreseeable future, and the price of the land itself should raise in value long term.  Yeah, my $200k house might drop to $50k in a worst case bubble pop scenario.  However I also don't see how you can put a price on full on freedom from the rental grinch.  Besides, in a "normal" financial situation, those properties would actually still be worth between $100-150k, so if the markets just simply correct themselves, I won't be overspending too terribly much either.  I'll be staying long term, like very long term, so overall it'd actually end up being LESS monthly cost for me than renting as is right now.

 

If this guy I sent the letter to doesn't respond or whatever, then so be it.  I was actually kind of waiting for the crash before seriously looking to buy anyway.  It's just THIS house, is seriously just about perfect in almost every way.  Not too big, not too small.  Both the house and the land.  Right next to family.  Right next to a good school for kiddo.  I'd save money compared to renting as is right now.  One day I could build a racetrack and drag a couple beater cars home, and nobody can stop me........things like that.  

 

I have put a lot of thought into all of this already, and I agree right now is a terrible time to be looking to buy a home.

This might be the best it's going to get for a while to buy a home.  Interest rates are going to rise in an attempt to slow down the rate of inflation.

I bought my house during the last housing boom in 2005.  At the time, I paid an inflated price, but I'm better off now than if I hadn't.  Renting a 1 bedroom apartment is more than the mortgage for my 4 bedroom house.

[Sir Beregond]

6 hours ago, ENTERPRISE said:

It can happen, but it's not easy with house prices being completely inflated to the point of insanity. Im 33 and have only owned my house for the past year. Compared to my parents who owned there hows at about 18/19. 

 

I was lucky as I was living at home, but in an annexe. So I could save etc but if I was renting and trying to save.....forget it. No way I could have done it. I had to borrow money as well to make it happen as my parents are working class, my dad is a musician...so yeah, no money coming from family. Which I didn't ever expect anyway as I didn't expect people to path the way for me. 

 

That being said, I had a kind helping hand, to which im forever appreciative.

More and more that's probably the way to do it.

 

Here we've been waiting for the shoe to drop in terms of the housing pricing bubble popping for over a decade now. So far nothing has caused it to go down be it recessions, COVID, or otherwise. If the bubble is going to pop, I'd really love to know what will cause that.

 

At this rate, probably just have to start looking at rural areas or just a completely different state unless I work out some other plans.

 

EDIT: Oh to make things even worse, the demand far outweighs supply so houses are regularly selling for $50-$100k over list price.

Edited March 13, 2022 by Sir Beregond

[bonami2]

Trying to get a house here in canada too. Need to relocate farther north around small city to get decent house around 80-200k.

 

Next to my crappy 650$ month appartment they build house starting from 850k .

 

I wish you luck in your house hunting. I think it really worth it being at home alone without anyone around to bother.

 

 

[bwalker36]

The bubble in my area was fueled by covid.  People were trying to escape NYC and come where I am.  I sold my house in 7 days with a cash offer and bought a new one.  The new one was tough to find but I'm in my forever home and with a 2.8% mortgage I'll never have to refinance.  According to zillow my house is already worth 100k more then I paid for it, stuff is crazy.  

 

Edit:  I used a mortgage broker both times I purchased.  I didn't pay them, the lender did and they do all the legwork.  I can't vouch for all of them but I'll never secure lending myself ever after working with a broker.  My brother and law used the same one and had zero issues getting a loan with a 580 score.

Edited May 1, 2022 by bwalker36