Bringing some of you up to speed. my house was in foreclosure. i settled w the bank (w a hard money loan Jan 2014 ) to buy my house back from the bank. Loan is at 12% and ends (no extension) 11/2015. I am trying to refinance out of it.
My options are getting a little fluid
1. loan I was approved w is saying it does not fit their program anymore and now want 6.375% and 4.75 points to the bank and 2 points to the broker to do the loan. I have 3 past foreclosures, their program allows one.. 6.75 total points. I submitted info and they are going to see if we get an approval this week. This loan has changed several times and feels less stable but is almost done. Loan is a 5/1 arm. I would break even w points in 23 months. Not impressed or confident w broker.Currently saying I must title in LLC (which if you read down I do not want to do). I have asked them to change this and reduce points.
2. looks like other banks are now offering this loan type (above) but very few in Illinois. Loan type is called 'one day out of foreclosure' and is very new. I have contacted someone else for a similar loan to the above to check points .. just gathering info. they are saying they only charge 2-4 points and appear to be an established brokerage.. my #1 option is just one guy. expect FINAL news if they can do the loan today and their points
3. guy who set me up w the loan i have NOW thinks he can get me a 4 point 8ish% 5/1 arm loan . He is someone I know I can trust and the loan iwll close. i am submitting preliminary info to get an accurate quote. thsi will be in my back pocket. requires LLC titling.
4. FHA guy 'thinks' he can refinance me out (using extenuating circumstances' in a year from the date the bank took over the last rental 8/2014..sale date 5/2014). They need title in my name for 12 months prior to do this. Title currently in LLC. FHA is checking this thoroughly and we will submit extenuating circumstances docs for review NOW to make sure I qualify..
key items (just found out)
1. FHA says they need the house in my name for 12 months to refinance me out at all at any time. So I need to either get a new short term loan in MY name (currently titled in LLC) or ask current hard money lender if I can change title and go right to FHA loan from here
1. contact current lender and ask if I can change title to my name or add my name to the title w the LLC
2. AsK FHA guy if that fits the requirements
3. Proceed w option #1.. see if I get approved and ask if they can reduce the points and let me take title in my name (broker is currently saying has to be in LLC)
4. Proceed w info gathering w option #2 to see if they CAN do the loan. I have 3 foreclosures (most lenders in this programn only do one past foreclosure, which is why option #1 changed all of a sudden)
5. proceed w basic submittal on option 3 so I have something in my back pocket
6.submit all my extenuating circumstances documentation on the FHA option to try to get that more 'certain;
the FHA option is best if it can be certain. I can not be uncertain the loan will go through. I do not have a lot of time after 8/2015 to get another loan if it does not work out.
Otherwise just getting a 5/1 arm w less points is the better option and if I can get 4 points pays for itself in a year. The option #2 has no issues putting it in my name alone which means I can 'cruise' for 5 years or less w that loan and then easily switch to conventional or FHA on my own without a broker.
6.75 points wipes out almost all of my emergency and rental emergency fund. can not really afford it well.
so option 2 is best for a loan now if they can do the 3 foreclosures and loan in Illinois.
News as it comes
My Dad had a stroke last weekend and is not doing super awesome.. lots of stuff going on there.
No job news
6 homes picking up (share later)
need to decide if I renew the current Property manager of the 3 units (that I just removed from the 6 homes) or just switch everything over to the 6 homes guy. Nov 1 is end date of her contract.
Talked to the 6 homes prop mgr and evaluating
This 'trying to reach my 5 year plan' stuff is pretty exhausting some times!
**Also broker for option 1 (loan I 'was' approved' for) is saying he earned his broker commission already and says loan has been approved for 2 months, it has changed 3 times and we are now resubmitting. I stil ahve no approval letter from the bank. he just sent me a note that he is not working on file unless I pay him his fees> I will do a 3 way call w my accountant and him today but not paying if I do not have something from the bank saying this is approved and we close and have asked him for that several times. All he sends is good faith estimates that have changed 4-5 times etc..will also follow up w the other company offering this type of loan. The loan just substantialy changed late last week.. Crazy! Hope option #2 can do the loan **
Archive for September, 2014
Got a lead on a 100% work at home job. $57/hr (and one position that is higher rate..) 18 months.. I am trying to get in w the recruiter tomorrow. They have 10 + openings but the job was sent to 200 people.I am a good fit.. need to look at what $57 hour would be vs $65 I make now (but minus the gas costs)..My last job was $55/hr./. I woud also have time AND energy if I worked at home to do my consulting. easily $500 a month.
Hoping to hear on at least one job next week and THE LOAN. Geting that nervous feeling in the pit of my stomach w this loan .. really need it to close..
I am off to Florida w that guy I am seeing Friday thru Monday... his daughter ad grandkids are out there. I wil try to work more hours Mon-thursday so I do not take such a paycut.
trying to take note of of things I am grateful for.. and will start that. unfortunately too tired to list or start tonight and have to be up early for this insane drive
I DID get 4 new tires. car rides like on air now.. very nice.
Feeling a little discouraged.. probably because I am SO TIRED and waiting for all these things to finalize
1. jobs. submitted for probably 4-5 more. all in town or nearby. got one phone interview. no word yet on 2nd interview. got turned down on that one job. Job cycle is MUCH SLOWER this time of year.. 4 of the jobs I applied for went on hold.. Crazy!
2. Loan.. on pins and needles waiting for the 'clear to close'..I guess i was expecting it in a day or two after the appraisal. broker says it can take up to 2 weeks and they do purchases first. mine is a refinance.
3. 6 homes. I am looking at that vacant house we are fixing up on Saturday. supposed to be done or almost done.. looking to start showing it next week to rent. rent $1050 up from $1000 but may go down to $1000 dependent on reaction. this is a SLOW season
4. foundation guy (on that same house) appears to have found a solution for the lingering water issues... $1800. down from estimated $5k
5. looking to do at least 1 more roof this year on the '6 hommes'
7. 3 units property manager contract is up 11/1 (and it is w the lady who was managing the 6 homes who I jsut switched from) I am thinking of switching that to this other PM who manages my 6 homes now. I am acting different w him, different expectations, less anxiety and it is really working out great.. plus his contacts are thousands lower for the same or better job..also he is creative and has so many homes he has ads out all the time. he has already referred folks for the house we are fixing up so hoping to fill that asap
Basically my two biggest stressers are the job and the loan not being finalized. the loan is a big stresser as I want to settle and relax in the house and I am holding off on all sorts of things pending the exact numbers on that
Onward.. but resting tonight.
October will mark a year on SA and I am going to do a wrap up time capsule of the year. I am hoping it includes closing this loan!!
Appraisal is IN.. $510k. This means I will need to pay approx $13k to close the loan.. with $5100 of that being 'starter escrow funds' so this is money will get back on the next loan or house sale since full escrow is being taken every month too
The new payment is $1111 LESS than what I pay now with the mortgage (and self escrow for taxes and insurance)
I will make up the true costs of the loan in 8 months and the full $13k in 12 months with the rest just being savings. I think it is a good deal and I am locked in for 5 years and it is an arm. In 5 years I can get a normal loan. Rate now is 6.125.
Feeling good. Closing to be set very soon.
However this eats up my ENTIRE emergency fund (need to rebuild that). I am owed $6k from that guy (his bike will sell at some point and he calls every week).. and I have the Tahoe to sell. $23k? maybe I will have money left after paying off the genesis. and have a few more things to sell.. $1000? and once things STABILIZE (w the homes) I can save $1500 a month
Got quotes on the vacant house fix up thru the new property manager.. $2500.. much less than the last fiasco.. I feel good w that.. done by next weekend and then rerent ASAP. I need rent!!
Short term insurance lady moves in tomorrow.
And i need to do that French drain system to ensure that both homes are water free.. $3-5k. dependent on how involved I need.. worth it.
JOBS.. getting more and more calls on jobs. got another interview tomorrow for an AWESOME job in Oakbrook.. 2 year contract, $65/hr and 401k with match in 3 months. FINGERS CROSSED.
No news on first interview.
Onward. This appraisal coming through is a BIG weight off my mind. Can not wait to get the closing date.. hoping for next week.
No word on appraisal or jobs today. submitting to yet more jobs at one certain Naperville company that I will share once I get a job there!
Anyway.. short term renter is signing a 6 month lease at $1435 w it converting to month to month after that. We are hoping for 9 months. we shall see. that is a $510 increase over the last rent which will hopefully offset my costs as of late and let me start to rebuild.
Getting quotes on the now vacant house to get it moving.. goal is to have it fixed up by next weekend and ready to rent
This house needs french drains..guy who was going to do it . his voice mail has been full all day. hope he can stil do it
SUPEr swamped at work and stresed w the insane drive.. had to work 'later' today and drive was incredibly bad!
Praying for a new job (local) soon at same pay.
Onward but TIRED and STRESSED.. need a day off..or just work at home or something.
Appraisal was today. hope it went well. lady seems a little like that guy who low balled me before. hoping for $525k. there are not alot of ranch comps in Naperville with large lots etc.. I had my property manager pull comps for me and I gave them to her, with a list of improvements, my old BPO (showing $525) etc.. she will review them. PRAYERS!!
If thsi appraisal comes out right we should only need one and can likely close week after next.
Lady who was not paying moved out today (most of her stuff) we take the house over Monday (change locks if not totally out)... I walked through today . no real damage. we will do new carpet, touch up paint, new fixtures and lights..my property manager 'all in one' guy is on vacation this week so I am having some of the folks I know quote. I continue to need to increase my list of maintenance guys, all in one guys, etc for these homes.. will make a list of what I have (and hwat the property manager has) . Good guys get busy so need more than one.
Got an application and likely lookking to finalize w that lady whose house burned down and just needs 9 months.. will hope to finalize that Monday.. $250 premium on rent.. which makes the rent $1435 (up from $925 from the last renter)
I am also going to get it section 8 approved so we have that route for later if need be. section 8 rents went wway up too..
So nice basic house fix up is done.
Will contact the guys w that french drain idea for the 2 homes (they are side by side) to finally fix the water issues .. the house that we are renting and is ALREADY fixed up is dry w the fixes we have done so far.. the house next door (that is being vacated now) is NOT dry in a big rain (which this year seems to be full of) a French drain should solve that
Praying for the appraisal to go well, the short term renter to work out, reasonable cost to fix up the other house and more money and LESS COSTS and a new job (forgot)
I hear on the appraisal MONDAY!!
Loan update. They got the paperwork wrong. rate was wrong. they sent me 5.5% but for the program I am . it should be 6.25%.. no change in any other terms. Still very good. Apparently someone at the mortgage company made several errors like this. They fired her and are submitting all new paperwork for me to sign. Makes me nervous. ON a higher note they charged me for the appraisal, $370, which means someone has to call me soon to set that up. Once that is over .(and hopefully turns out well) I am home free. Reminding folks..one of the reasons I need to get out of this loan is the payment is $2970 WITHOUT taxes and insurance (that part adds almost $1000). I can not afford to escrow that without a severe cut in any monthly savings. ANd if I escrow I need to start escrowing this month. W the new payment, I will pay the same amount or less and it will cover taxes and insurance as well. HUGE savings. Anyway, they are looking for $525k for the value to wrap in all the banks costs remaining... 525k would be awesome but a little less is fine too. Also for folks who were not tuned in up front.. part of the reasons things are tight (outside of my crazy 5 year ambitious plan) is because my 'plan' did not include having a mortgage payment AT ALL for probably 2-3 more years out. I got an opportunity to buy my OWN house from the bank (it was in foreclosure) and I did so because of the equity and peace of mind that brought.
Ponderings.. paid all personal bills for this month just now and figured out 6 homes/3 units costs for the month (standard costs) based on estimated rents/expenses. I am basically surviving now.. not putting much into savings. I put $453 in last mont, zero for July, and will try to put $1000 in this month. All my extra funds is going towards the loan costs ($1000 to date, paid out of close) and overages on the 6 homes due to lack of rent.
Trying to think positive. I am doing a good job of squeeezing things to cover my costs without dipping into emergency funds so when the homes stabilize.. I should be doing real well and when I switch jobs (if I do not take time off.. which I likely will) will have an $1800 cushion between jobs.
We shall see.. trying to SEARCH for anything positive.. too much in the air still.
No word on Naperville jobs.
Got a job interview though (sortof sudden) and had it yesterday. I think it went very well. They have 2 openings and I think I am one of 5-6 so have a fairly good chance.
Oakbrook.. 30 minutes drive or less
Flex time- YES
Manager is open to 2-3 work at home days a month
this is a contrct to perm..
Need to investigate the permanent side more.. would like to get $120k
I will hear on this job within a week (maybe even THIS week).
they were in such a hurry they did a phone interview so I have not seen the office, done the drive yet so need to do that.
Gives me some hope to have some movement on the job front and interview went very well. gives me confidence.
Still waiting for loan appraisal
Praying that goes through. Calling broker in an hour
NEED good news on the 6 homes.