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I am looking for advice though this is more of a vent.
We live in a high COL area. My entire life I've dreamed of, and worked towards, owning a farm. My SO is craving storage for his classic cars. Prices here are out of control because when farms go up for sale, they are typically snapped up by developers, razed, and hello McMansion subdivision.
I also consider moving out of state to a better (for me) winter climate, so that's always in my mind. But as I get older, I wonder if I should jump on something here if it pops up, in case I can not get away later. I am going to go stir crazy on my little city lot some day.
This week, a house I had bookmarked had a substantial price drop. There's only about 10 acres, but due to wetlands and topography, risk of development along the property lines is minimal. There is a house in good condition, barns and outbuildings. It appears to have a lot more privacy than either of us have now, and there is plenty of storage.
My SO can qualify for it on his own even with a minimal down payment (I am self employed so I am often a detriment to the loan process). We would put more than the minimal down payment on it anyway, but that's how the loan guy ran the numbers.
Here is the sticking point. They cashed out the person who was living in the house 2 months ago, and that person removed every single thing they could when they left. They did it neatly, but they did it. Shower stall, toilets, kitchen cabinets, all appliances, one of the furnaces, door locks, baseboards. I'm surprised they left the new electrical panels.
This is fixable without too much cost but apparently the house is deemed "uninhabitable" because of that so we'd need to do either cash (not easy) or a rehab loan (which I've been told is also not easy). We would normally do all the work ourselves, except for a roof, but have been told that with a rehab loan, we have to use contractors which obviously increases the cost.
We are a bit frustrated by the whole thing. Are there any other ideas we can look into? I talked to a loan guy who mentioned a USDA loan as a possibility, but they also require the house to be habitable. (there's an outhouse and a stream, I'd think that would qualify for bathroom!! And I have coolers and a camp stove )
A rehab loan isn't that difficult. My oldest son did one several years ago and he and I did all the rehab work with the exception of running a new sewer line (we did the supply side plumbing) and some foundation work.
How that was done was our doing the work under the contractor's license for a fee. He was the contractor of record for permits, inspection and the loan.
I am looking for advice though this is more of a vent..................Here is the sticking point. They cashed out the person who was living in the house 2 months ago, and that person removed every single thing they could when they left. They did it neatly, but they did it. Shower stall, toilets, kitchen cabinets, all appliances, one of the furnaces, door locks, baseboards. I'm surprised they left the new electrical panels...........
We are a bit frustrated by the whole thing. Are there any other ideas we can look into? I talked to a loan guy who mentioned a USDA loan as a possibility, but they also require the house to be habitable. (there's an outhouse and a stream, I'd think that would qualify for bathroom!! And I have coolers and a camp stove )
That's a tough one, but I think you ought to stick with it. Talk to people until you find someone who can help. Someone will loan you the money
Who owns it now - the bank? A house that cannot be mortgaged is worth very little. And the bank knows that.
Will the owner do a sales contract? These can be risky for the buyer, you would need to hire a competent real estate attorney to review the contract - or better, negotiate it for you - but they can be done. Then when the house is up to code, you can get a conventional mortgage on it. Many rural jurisdictions would allow you to live on site in a travel trailer while you are doing the rehabbing.
A rehab loan isn't that difficult. My oldest son did one several years ago and he and I did all the rehab work with the exception of running a new sewer line (we did the supply side plumbing) and some foundation work.
How that was done was our doing the work under the contractor's license for a fee. He was the contractor of record for permits, inspection and the loan.
That's interesting! Was it easy to find a contractor like that? We do know some people we can ask.
Quote:
Originally Posted by HokieFan
OP, you might get some good advice on the Mortgage forum.
Oh no! I didn't see that forum. Can a mod move this? Thanks!
Quote:
Originally Posted by Listener2307
That's a tough one, but I think you ought to stick with it. Talk to people until you find someone who can help. Someone will loan you the money
Who owns it now - the bank? A house that cannot be mortgaged is worth very little. And the bank knows that.
Yes it's bank owned. The price dropped by over half once that happened. It was definitely out of reach when the prior owners were trying to sell.
Unfortunately because it's a high COL area, there are plenty of people with money who are already talking about tearing down everything and building their big house (it's actually a good sized house to begin with). We were one of the few not daunted by the house and outbuildings, and not wanting to tear things down. A real owner may care about that but a bank sure doesn't.
My other issue is that we're trying to get everything lined up before putting in an offer. But someone told us to put in an offer anyway to see where it goes, especially since it's listed cheaply for the area. I last bought a house in 1990 and don't remember how any of that goes. If we put in an offer and can't secure the money or the right loan, what happens? Although we had talked to a loan guy, the agent didn't ask for a letter or anything for the showing.
To answer how "easy" it was to find a contractor to use his license, it wasn't that hard. Between my son and I we knew several in each trade who knew our (mainly his) abilities.
They cashed out the person who was living in the house 2 months ago, and that person removed every single thing they could when they left. They did it neatly, but they did it. Shower stall, toilets, kitchen cabinets, all appliances, one of the furnaces, door locks, baseboards. I'm surprised they left the new electrical panels.)
Just an aside, but... wow. They probably got a whole $5-600 for all that used crap, and ripped $10k in repair/refurb costs from the property. Idiots.
Just an aside, but... wow. They probably got a whole $5-600 for all that used crap, and ripped $10k in repair/refurb costs from the property. Idiots.
Yep! The furnace was probably worth the most. Some people don't care, it's all spite. I'm just glad the walls and floors weren't damaged - at ALL when they did that. It almost looks like they were renovating until you look closely and see some of the cut lines.
If we put in an offer and can't secure the money or the right loan, what happens?
You lose your earnest money and could be sued for specific performance.
You want to make sure you have a specific financing contingency in your offer so you can back out and get a refund if you can't get financing.
A smart seller will want to see pre-approval before accepting your offer.
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