Pine Hills Home (Orlando: real estate, rental, mortgage)

[BrokerHarry]

Originally Posted by inkling

...the seller won't come down on the price...

Originally Posted by tworent

who is doing the negotiating that might be the problem.

In situations where there is substantial deferred maintenance, I would suspect the seller is more likely very aware of exactly how much they still owe the bank, & the exact sale price that they MUST net, without having to obtain 3rd party approval from their lender.

The Mortgage Debt Relief Act has expired. Most sellers are no longer going to want to attempt a short sale, because the forgiven debt (the amount shorted) is potentially taxable as regular income going forward.

The expiration of this short sale "Get Outta Jail Free" card will potentially force many FL homeowners who are still underwater, or who barely have equity, to stay put, & wait for more appreciation in the overall market before placing their homes for sale again.

[tworent]

Originally Posted by BrokerHarry

In situations where there is substantial deferred maintenance, I would suspect the seller is more likely very aware of exactly how much they still owe the bank, & the exact sale price that they MUST net, without having to obtain 3rd party approval from their lender.

The Mortgage Debt Relief Act has expired. Most sellers are no longer going to want to attempt a short sale, because the forgiven debt (the amount shorted) is potentially taxable as regular income going forward.

The expiration of this short sale "Get Outta Jail Free" card will potentially force many FL homeowners who are still underwater, or who barely have equity, to stay put, & wait for more appreciation in the overall market before placing their homes for sale again.

The house is owned by an investor so I would say there is no money owed to the bank so it is not a short sale. You are looking at it like a RE agent nothing you said has anything to do with this house.

[BrokerHarry]

Originally Posted by tworent

The house is owned by an investor so I would say there is no money owed to the bank so it is not a short sale. You are looking at it like a RE agent nothing you said has anything to do with this house.

Smack your head all you want.

How do you know they aren't operating on a hard money loan, & have a very good idea of exactly how much they've put into the property so far, with still more work that needs to be done to make it finance-able for the next buyer?

It's quite possible that inkling was fishing for a price that was below the sellers' required net for a reasonable return on the flip.

If that property still needs additional work, it isn't going to appraise, especially if inkling is seeking an FHA loan.

inkling admits his credit is "iffy" & he's self employed. He's not going to qualify for conventional financing.

There's numerous reasons why the transaction might have gone south, beyond "who is doing the negotiating".

[inkling]

Originally Posted by BrokerHarry

Smack your head all you want.

How do you know they aren't operating on a hard money loan, & have a very good idea of exactly how much they've put into the property so far, with still more work that needs to be done to make it finance-able for the next buyer?

It's quite possible that inkling was fishing for a price that was below the sellers' required net for a reasonable return on the flip.

If that property still needs additional work, it isn't going to appraise, especially if inkling is seeking an FHA loan.

inkling admits his credit is "iffy" & he's self employed. He's not going to qualify for conventional financing.

There's numerous reasons why the transaction might have gone south, beyond "who is doing the negotiating".

No, I won't qualify for anything. We are putting the loan in my fiancee's name, who is employeed and has good credit. I work as well, but have bad credit. I also write (I make more as a self-employeed writer than I do at Sea World). My fiancee just started working Lyft/Uber as well, which we didn't factor in to our prequalification for mortgage at all. We went by my fiancee's job and his good credit, which got us approved for 70 -75. (If I had better credit and could qualify with my employment alone, not self-employment, we would likely qualify for double that. We make about 40k combined and on his app we put 16.9k)

The house is 79.9. We wanted to offer 70, but asked the realtor about repairs first. The realtor contacted the buyer, but the buyer isn't willing to come down on the price, and there are still some issues that need to be fixed, which makes it out of our range.

Also, I'm female

[BrokerHarry]

Good luck to you, inkling.

It's not easy getting a home loan these days. It can be done, but most borrowers have to jump over more hurdles than ever.

A Pre-Qual is one thing...but actually getting the new loan approved is a whole 'nother can of worms.

It is reported by the NAR that somewhere about 25-30% of all loan applicants end up getting turned down.

Underwriting is overly difficult, with the credit pendulum swinging far more to the stringent side than most would consider reasonable.

Keep working. Pay down your debt. Hang in there. It will eventually all come together.

[inkling]

Originally Posted by BrokerHarry

Good luck to you, inkling.

It's not easy getting a home loan these days. It can be done, but most borrowers have to jump over more hurdles than ever.

A Pre-Qual is one thing...but actually getting the new loan approved is a whole 'nother can of worms.

It is reported by the NAR that somewhere about 25-30% of all loan applicants end up getting turned down.

Underwriting is overly difficult, with the credit pendulum swinging far more to the stringent side than most would consider reasonable.

Keep working. Pay down your debt. Hang in there. It will eventually all come together.

Thanks. My debt is'nt all that high, its just a lot of small things and a lot of old things. I have an eviction on my record from 2009. We don't want to use my stuff for other reasons though - my mom said its best to use one person's income when factoring in affordability, because the economy is fickle. Plus, I want to be a stay-at-home mom when the time comes. Its better for them to go off of 16.9k now, then he can go back to school next year and we will still be able to make payments on time and have back up income as needed. Meanwhile I can get my credit clear. Our goal is to get a cheaper house, then pay it off faster. If we need more space, we could then sell the house and use the money as a down payment elsewhere once he graduates or we have more money coming in. We don't want to use gift money towards the downpayment either

[tworent]

Originally Posted by BrokerHarry

Smack your head all you want.

How do you know they aren't operating on a hard money loan, & have a very good idea of exactly how much they've put into the property so far, with still more work that needs to be done to make it finance-able for the next buyer?

It's quite possible that inkling was fishing for a price that was below the sellers' required net for a reasonable return on the flip.

If that property still needs additional work, it isn't going to appraise, especially if inkling is seeking an FHA loan.

inkling admits his credit is "iffy" & he's self employed. He's not going to qualify for conventional financing.

There's numerous reasons why the transaction might have gone south, beyond "who is doing the negotiating".

I understand but everything you said is looking at it from a agent's point of view is all I am saying.

[BrokerHarry]

The difficulty you're going to run into trying to buy a very inexpensive starter home, inkling, is that the cheapest properties usually have the most deferred maintenance. They need repairs, & your new lender isn't going to like that.

That makes it especially hard for an FHA buyer to land, especially if the seller isn't willing or able to make those repairs. The property simply has to meet certain appraisal standards in order for you to obtain the new loan, or there is no deal, regardless of your earlier Pre-Qual.

If the property is being sold As-Is, chances are an FHA buyer isn't going to be able to close the transaction.

Cash investors (like tworent, or myself) can swoop in on those same properties because they submit offers with no loan or inspection contingencies, & they're prepared to handle necessary renovations, after they close.

So the most inexpensively listed properties usually end up as investment rentals, or flips, as opposed to owner occupied, like you're hoping for.

I would suggest setting your sights on continuing to clean up your credit, combining your incomes, & setting your sights on a home for a little more money that's in better condition.

Don't worry about how fast you're going to pay it off, as opposed to simply keeping your payments current, & maintaining your investment, & letting time work for you in building equity.

Not very many people hit a home run on their first time at the plate. But it's real important to at least get on base.

Best wishes to you.

[inkling]

Thank you for the help. I'm going to keep trying, but I moved my search to the 60 - 65k range to help give us some wiggle room. It'll be years before my credit is good to go again and I may not be working my "actual" job at that time, since my self employment pays much better. Maybe we will get lucky and find something that doesn't need a lot of work done or be able to negotiate if something major needs to be done. I just think of all the money we are wasting renting a trailer that is out of the way and doesn't have the features that we want

[tworent]

Originally Posted by BrokerHarry

The difficulty you're going to run into trying to buy a very inexpensive starter home, inkling, is that the cheapest properties usually have the most deferred maintenance. They need repairs, & your new lender isn't going to like that.

That makes it especially hard for an FHA buyer to land, especially if the seller isn't willing or able to make those repairs. The property simply has to meet certain appraisal standards in order for you to obtain the new loan, or there is no deal, regardless of your earlier Pre-Qual.

If the property is being sold As-Is, chances are an FHA buyer isn't going to be able to close the transaction.

Cash investors (like tworent, or myself) can swoop in on those same properties because they submit offers with no loan or inspection contingencies, & they're prepared to handle necessary renovations, after they close.

So the most inexpensively listed properties usually end up as investment rentals, or flips, as opposed to owner occupied, like you're hoping for.

I would suggest setting your sights on continuing to clean up your credit, combining your incomes, & setting your sights on a home for a little more money that's in better condition.

Don't worry about how fast you're going to pay it off, as opposed to simply keeping your payments current, & maintaining your investment, & letting time work for you in building equity.

Not very many people hit a home run on their first time at the plate. But it's real important to at least get on base.

Best wishes to you.

well said