Home buying thread

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Xarpolis

Life's a Dream
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My numbers were pure speculation, but someone described it to me that way a LONG time ago, so that's why it stuck in my head. Banks lose more at foreclosure than they do at short sale, so they "try" to short sale more often to recoup more of their investment.
 

Kedwyn

Silver Squire
3,915
80
The reason the house is in short sale vs say foreclosure is the current owner is still there and working with the bank. Generally speaking, when they do this they are working with an attorney or some other helper which guides them through the process. As a result of the cooperation people tend to be let off the hook for the deficiency judgement and not get the 1099.

That is the carrot for working with the bank. Both sides win. The bank has someone taking care of the property, they aren't having to do nearly as much paper work and costs to foreclose with the buyer gaining not getting sent a 1099 from the bank for the debt forgiveness.

Banks tend to fair better with short sales vs foreclosures in many areas. Depends greatly on the legal climate and the banks portfolio.
 

Khane

Got something right about marriage
20,343
14,006
The reason the house is in short sale vs say foreclosure is the current owner is still there and working with the bank.
This isn't true either. The majority of people I know who got themselves into a bad situation and went with a short sale for their home are even in new homes with another mortgage from another bank. Short Sales make no sense from any angle until you realize it's just another way to play financial smoke and mirrors and sell bad financial packages to other banks/investors.

Nothing has really changed even in the wake of the shitshow that was 2008.

Combine that with the fucked up situation we have in this country with student loans and we're ripe for another meltdown. Prepare for another bailout if you ask me.
 

Palum

what Suineg set it to
26,551
41,348
Um, what. The bank doesn't decide if you're taxable, if you don't get a deficiency liability they are certainly going to issue you a 1099-C and report it to the IRS. Whether you are liable for said taxes is another matter and I believe some of the protections from the market crash have since expired.
 

Kedwyn

Silver Squire
3,915
80
Yeah I didn't say that well at all and incorrectly tied the two. The deficiency judgement or lack there of is the reason you want to work with the lender. The tax exemption for the mortgage defaults ended in 2016. Unless you live in a non recourse state of course.
 

mkopec

<Gold Donor>
26,236
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So my wifes late dad owned a few properties up north in michigan. One was his primary residence, like 2500 sq ft house, 3 huge outhouses for storage on 22 acres in the middle of but fuck egypt woods surrounded by state land. Nice place but too big to keep as a summer place. Its a 2 story house, finished walkout basement and just too huge to run and operate in the winter as its in the snow belt. So were selling that place. he bought it in the 90s for about $200K, but its now worth about $150, fuck Obama.

But her late dad and his brother own another place a bit south of there, 2 acres, and it has a trailer on it. It was their first place they got in the early 80s as a summer place/hunting lodge. But its a nice trailer that they hooked up over the years to be like a hunting lodge, added additions to, insulated and done up with all metal roof and siding. so its like 3 bedrooms, huge ass bathroom, and a nice living and kitchen space with a dining area. Plus it has 2 huge 30x40 outhouses to store all the shit in like snowmobiles, tractor, boat, dirt bikes, tools, they even have 2 souped up golf carts up there to ride the trails with. Its also surrounded by state land and trails galore, plus its right by Houghton lake. Its inside of a little community of maybe 20 or so places like ours, all pretty much 2 acre parcels all surrounded by state land, heavy hardwood and pine forest. Perfect summer/winter weekend getaway.

So her uncle, her late dads brother, told us he has no interest in this place anymore and wants to sell (both his brothers lived up there full time after retirement and they are both dead now). So were considering buying his stake out. just to keep it in the family, let the next gen enjoy it, pass it down to our kids after were dead. He says the place is worth about 50K and we already own 1/2 of it because of her dad. So 25K for a sweet up north place about 3 hours away? Does not sound bad. Operating costs would be propane, minimal electric to run well pump and lighting, and minimal taxes of about $1K per year.
 

Tenks

Bronze Knight of the Realm
14,163
607
What about mowing and upkeep of the property? It sounds like one of those things that sounds great in theory but in reality you'd use it twice a year and it is more headache than it is worth.
 

mkopec

<Gold Donor>
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Yeah, its definitely a consideration we thought about. but as it stands were constantly going up there anyways. Have ben since ive met the wife. We stayed at the trailer many times, but when the old man got the new bigger place in the 90s we stayed with him there.

The upkeep is minimal, like I said its in the middle of the woods. He cuts what little grass there is maybe twice a summer. In the winter they have that shit all hooked up so they drain all the water out of the place with a few valves and its essentially closed for winter. Or we could go up there and ride the snowmobiles if we wanted to and close it down again.
 

Tenks

Bronze Knight of the Realm
14,163
607
Well if you go up a bunch already it sounds like a no brainer. My concern mostly lied in people thinking the only thing keeping them from doing X is they don't have Y. But in reality they don't really have too much motivation to do X and there will always be a Y in the way.
 

mkopec

<Gold Donor>
26,236
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We would of went up there a lot more but we always felt like we were imposing, even though the old man probably loved us being there. But still its only a 2.5-3hr drive, so we could go up there anytime. Kids love it there too cause they do the dirt bike, mini bike, golf art thing. They even know all the trails already. Plus it gets them away from the damn xboners and ps4s and shit. Crap cell reception too so they cant stream shit there either.
 

Burren

Ahn'Qiraj Raider
4,364
5,890
We would of went up there a lot more but we always felt like we were imposing, even though the old man probably loved us being there. But still its only a 2.5-3hr drive, so we could go up there anytime. Kids love it there too cause they do the dirt bike, mini bike, golf art thing. They even know all the trails already. Plus it gets them away from the damn xboners and ps4s and shit. Crap cell reception too so they cant stream shit there either.
It sounds like a great little retreat if it's not a financial hardship, or a pain in the ass to maintain. Go for it.
 

Tenks

Bronze Knight of the Realm
14,163
607
House is in contract. It was on the market Thursday evening. I took some money off the price (5k) because the buyer is motivated and has secured very strong financing (she has ~40% down payment) so I don't have to worry about that side falling through. My neighborhood is pretty common to have FHA loans with less than 20 down so I really didn't want to deal with it. Contract didn't ask for any closing costs paid so thats about 2k I was pretty much planning on eating. It is also a short close at 30 days instead of standard 45 days so everything about the terms works out well for me. I'm just happy that it got into contract quickly. If I had to vacuum my house one more time I was going to go crazy.
 

Cad

scientia potentia est
<Bronze Donator>
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House is in contract. It was on the market Thursday evening. I took some money off the price (5k) because the buyer is motivated and has secured very strong financing (she has ~40% down payment) so I don't have to worry about that side falling through. My neighborhood is pretty common to have FHA loans with less than 20 down so I really didn't want to deal with it. Contract didn't ask for any closing costs paid so thats about 2k I was pretty much planning on eating. It is also a short close at 30 days instead of standard 45 days so everything about the terms works out well for me. I'm just happy that it got into contract quickly. If I had to vacuum my house one more time I was going to go crazy.
Nice. Not looking for an address but what are you looking at in Irvine? Gonna rent for a while?
 

Tenks

Bronze Knight of the Realm
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607
Nice. Not looking for an address but what are you looking at in Irvine? Gonna rent for a while?
I'm going to have to rent for at the minimum 6 months. Housing is just too expensive and I don't have the available liquid cash for the 20% down. We were looking for houses here with about a 450k max budget and in OC it has to be at the bare minimum 550k to even think about buying a house.
 

Vinen

God is dead
2,790
495
I'm going to have to rent for at the minimum 6 months. Housing is just too expensive and I don't have the available liquid cash for the 20% down. We were looking for houses here with about a 450k max budget and in OC it has to be at the bare minimum 550k to even think about buying a house.
Nice. Congrats on the quick Pending Sign. 5K is not much of a lot for peace and mind about the sale.

I'd save up enough that you can break your lease and buy a house. The positive side is there is no rush (or shouldn't be) for you to grab a house if you are renting.

I'm still in my daily argument with my wife over going rental between houses. I have a habit of ignoring facts that go against my world view (
biggrin.png
) so I'd missed that she said we could get pre-approved for the upper bounds.
 

Tenks

Bronze Knight of the Realm
14,163
607
Nice. Congrats on the quick Pending Sign. 5K is not much of a lot for peace and mind about the sale.
That was my thoughts as well. Plus we need to purge a whole bunch of shit so I can't keep my house "show ready" for much longer. Like I need to get rid of my living room set, most of my spare bedroom set, all of my den furniture, one of my computer desks + chair, one of my TVs. Like almost everything is not coming.
 

Tenks

Bronze Knight of the Realm
14,163
607
So my brother is huge into banking and numbers. I was talking to him about taking money out of my 401k for a house down payment. Obviously anyone with a clue knows this is a terrible idea which is what he advised me as well. But he said there are plenty of low-interest 10% down no-PMI loans available. Does anyone have experience with something like this? Any idea if it is different in CA vs OH?
 

Vinen

God is dead
2,790
495
So my brother is huge into banking and numbers. I was talking to him about taking money out of my 401k for a house down payment. Obviously anyone with a clue knows this is a terrible idea which is what he advised me as well. But he said there are plenty of low-interest 10% down no-PMI loans available. Does anyone have experience with something like this? Any idea if it is different in CA vs OH?
They are out there. It may be in specific markets for larger loans. I didn't look but we did not come across it as an option in MA.

For example.
SoFi | Mortgage Loans - 10% Down on Loans up to $3M
 
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Well now is a pretty decent time to buy. Prices are pretty reasonable compared to the pre-2008 bust and mortgage rates are pretty low.

I have a VA loan through Freedom Mortgage and they just lowered my fixed rate 30-year (yet again) to 3.25%. They called me, offered to lower it for free, no closing costs, and the term didn't reset. It seems too good to be true but I check the numbers every time they open the new loan - same exact term and balance as the old loan, just lower interest rate. This is the 3rd time they've done it.

I'm assuming they do this to keep from getting poached? I do see ads for VA loans in the high 2% range ...