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Updates-not out of the woods yet (homes, short refi)

November 26th, 2013 at 08:00 am

Hi all.

Updates

Not out of the wood yet and PRAYING to stabilize.

HOMES
1. got a good prospective tenant for the house.. should know today or tomorrow if Section 8 approved
2. Foundation guy did SHOCKINGLY awesome work.. house looks strong stable.. very pleased ($12k worth of pleased)

3 units
1. tree is off the roof ($500) + $1000 worth of damage.. upsetting but done! I have room here to raise rents and it runs very well.. just a hiccup.. I like my property manager!

SHORT REFINANCE-sad news
1. short refinance for $302k fell through. new FHA laws say there is a 3 year waiting period to refinance after a foreclosure... EVEN if you bankrupted out of the homes.. (why did the loan people not tell me this upfront) one of my past homes is still in forclosure and has no sold yet. Expected sale within 6 months. Loan cancelled
2. potential good news. bank agreed via phone (will have in writing next week) that they will STILL take $265k for the house (house worth $400)
3. The difference between my loan from the refi firm ($302k) and the banks acceptance reflects the upfront profit the refi firm was going to take. So if I can get the funds I will actually come out ahead! WAY AHEAD

Now I can (once bank puts acceptance in writing) buy the house for $265k but (due to above) can not get a bank loan (FHA or conventional). I have made several calls and hard money in Illinois on owner occupied residences is hard to get.. very hard.. have not and will not give up.. once acceptance is in writing will approach creative lenders and friends

I CAN buy within a year of the last sale and already fit (credit score etc) the criteria for an FHA loan expect the waiting period. Talked to brokers already

My 2 flat in foreclosure (owned w ex) I can get rid of within 6 months

I am able to pay 2 points and 5-8 percent for a loan for up to 2 years

If you have idea for hard money lenders or finance firms.. let me know.

House worth $400k (firesale), 700 credit score.. can prove income.

I want the home because it is a good deal and I want to settle long term

Put $1500 in the Roth IRA today!
Took entire $12k out of savings so savings down.. but retained entire homes/units emergency fund

PRAYERS the house rents this week!

Been reading Rich Dad Poor Dad and getting more ideas

I need to invest more, get the 6 homes/3 units cash flowing more and cut unnece expenses and make more money

I am 43 and want to be able to quit work in 5 years!


3 Responses to “Updates-not out of the woods yet (homes, short refi)”

  1. TashaC. Says:

    Wait, how do you have a 700 credit score with foreclosures/bankruptcies?

    And what happens if you cant buy the house with cash? Do you lose it or can you keep making payments on the loan you have now and try to renegotiate with the bank at a later date when you have funds?

  2. Rachael777 Says:

    Hi. I worked very hard to rebuild my credit after the BK.. with a paid service and then on my own with new credit cards, car loans (got and paid off) etc.

    If I can not come up with the cash (most likely hard money loan from someone yet to be found.. and have not asked around yet much.. waiting to get written confirmation from bank. see below).. the house will proceed in foreclosure and eventually sell (2 years??). however in those 2 years I can continue to try to come up with $265k. It is really not that much (seeing house would firesale at $400). I am concerned NOW and then though that the price will go up at some point.

    I have sent in my offer on the house at $260k. The bank will not formally say what they will take without an 'offer' which is why I made one even without the funds avail..friend wrote me a pre approval letter.. so though they said $260-265 on the phone I will rest alot easier once they respond in writing and then can talk confidently to lenders.

    I can probably come up with $20k.. maybe more.. which leaves me $240k short..but hard money lenders often want fees up front etc..

    Prayers for their confirmation in writing nexxt week they are still at $265k. thanks for the interest. Smile

  3. TashaC. Says:

    ok thanks for the clarification. I shopped around recently for a hard money lender and was told the interest rate is between 7-10%. And they want you to kick in around 20% of the purchase price. So it was very expensive.

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