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still sowing, but no seedlings yet, 6 homes, job, loan update

August 25th, 2014 at 06:31 pm

Just diarying again

VERY tired..

1. no loan news.. hopoing to hear soon
2. no news on jobs but got wind of a PERFECT fit (project manager liaison between a major bank and my old company) only issue is it is downtown but looking at it anyway.. maybe it is only 1 day downtown .. they say I may travel between 3 offices. one of which is in Naperville. i am redoing my resume right now to fit this perfectly but this would be a dream job, fun, have contacts, and I know I can be a success and pays the same or more than where I am at $65/hr. I iwll not make the same mistake though of taking it if it is too far.. there are jobs out here in or near Naperville or work at home.
3. 6 homes.. positive feelings and news but no results yet. I want results and to REST.. having all this in the air makes me tired, hard to sleep etc and constantly doing job search/loan stuff at night..Talked to property manager.. he is setting up a few showings for this week (showings this weekned did not turn out.. ) also he got a call from someone who wants a short term rental.. some insurance case (fire at his house) and is looking at 6 months.. maybe more. He can pay a premium and since living in a hotel can move in right away.. a 6-9 month lease would put me in a MUCH BETTER time of year to rerent so we are considering it..PM is following up for details..ALSO got news on the non paying renter.. she is moving out this weekend, plans to pay a few hundred on move out day and we will try to sign her up for a payment plan. these are all words right but sound good. PM already has folks lined up for next week to do a quick fix up of that house and then will immediately look to rent it. As house next door is vacant now too we really want to fill that so the two do not compete against each other.

About it.

Praying for good news and closure on something.. (good closure)..

Customizing my resume for thsi job and then off to bed to read to relax.

I closed on the house!!

January 31st, 2014 at 03:35 pm

Hi guys.

I CLOSED ON THE HOUSE!!

Exhausting stressful day ( was working on last minute things all the way up to close).. but I now own the house.. on my own and it is no longer in foreclosure

Loan $297k
Value (after real estate fee) $488k if I were to sell

Has not sunk in yet..but it will in the next few days or once I can sit down and relax.

Thanks for all the advice and support. I could not have done it without this forum.

This marks the last big thing to get rid of or to clear from the 'downfall' years. the 2 flat will fall away on its own and I will start to contact folks (esp that one guy) in about 8 months once the 2 flat drops and I have gone past the 6 months prepay period.

Smile

I am excited to start new plans and ideas now (but after a weekend of rest).. Wow!!! The loan came through.

Rachael

House update-closing tomorrow

January 30th, 2014 at 03:43 pm

Hi all.

Closing tomorrow at 1pm central time (but still do not have closing docs. they say they will send tonight or first thing.)

A little anxious.

Will take out $21850 in cashiers check for closing
$17850 points
$4000 misc unknown costs (hopefully less!so get to take some of this back)

On a high note the old lender has paid my insurance for a year and is not asking for a refund so insurance is prepaid.

I will put the rest of my savings in a tax escrow $10k

I get paid tomorrow too

First payment on the new loan March 1.. $2970

Need to exit that loan asap.. yearish

OTHER NEWS

i am seeing a financial advisor tonight (set up after reading Tasha's post) bad night for it as I am wiped but still going..

I will grab a book on the way home and am seriously contemplating taking tommorrow off as sick, partially sick or work at home. .. really want ad need a 'break'. I just want to feel I can 'sit down' and relax.

I will update after close and feel excited when I can say 'wow I really did it' once I am complete w that.. has not really sunk in yet.

thanks for the help. think of me at 1 central.. prayers no more issues crop up.

House update..done deal?

January 29th, 2014 at 02:47 pm

House update.. BPO guy called.. set up for 5pm. cancelled at 2pm. called at 4 rescheduled for same time.. cancelled at 4:10

Broker called and got in touch w lender. they just want to go with $297k.. Settlmement is $297,500. They rounded down. I asked broker if they would go higher. he said unlikely for them to go over settlement

So cash needed is approximately

$17820 points
$4000 (other costs??)
$1060 insurance
$10000 tax escrow
=
$32880

Talked to my CPA friend .. he suggests I DELAY closing til next month to save on interest.. lender wants to close FRIDAY (maybe they are not aware of extension or have some month end target)

I talked to broker in 30 minutes ish (after I talk to my friend for what words to use) and will ask if we can close in 2 weeks..

Whatever date we close. I will ask my Mom/Aunt for assitance. Aunt had previously 'pledged' $7000 but (as you recall ) loan fell through so never got it. She may help w that again or not.. Hopeful!

I have $30,000 (but can make up tax escrow on next check. you will see I am $3000 short). Tax escrow goes to me.

VERY TIRED. I want to be excited but still rushing around.. excitment will come after the dust settles I think.

More news today. Broker sending letter of intent and then loan docs in morning. I need to pay for insurance and get that set up tomorrow.

BROKER just sent letter of intent and it says 'closing date 1/31 time being of the essence'. I will still request a later closing date.. even next week.. I have taken so much time off work, have the extension and want to extend the time I pay no interst..

More news soon. thanks for the help guys.

News from lender-not super awesome

January 28th, 2014 at 04:13 pm

Guys

news from lender. not super awesome

raised value to $420k (hellooo)
new loan amount $273k

with payoff of $297500, points, fees, tax escrow I would have to come up with $54880 to close

Broker was 'disappointed' and already asked lender if they could go up to 70% LTV>. (no response yet) but resulting loan would be $294k and I would need $35640 to close (with payoff, points, fees, tax escrow)

CRAZY!!

Had another (last one I am calling!!!) lender say this was impossible

Because a thing seems difficult for you, do not think it impossible for anyone to accomplish. - Marcus Aurelius

Broker called back.. "lender wants deal' they are ordering ANOHTER BPO (their cost).. tomorrow .. and will go w that value or $440-450 whatever is MORE but only 65%

Praying for good news. I am in SERIOUS NEED of good news.

Called realtor who did my report.. asking for thoughts on how to deal with new BPO guy... . would love it to come out at $47-$480 or MORE.. need to retain cash.

News soon. Thanks for pulling for me

House update-maybe some good news

January 27th, 2014 at 12:51 pm

Hi all

House update

Realtor appraisal ( very well written and substantiated)

List price $550k
Sales price $515-$525k

Wow! Average price in subdivision $575k in past 6 months

AND

bank who owns mortgage/house now gave me an extension til 2/28

My broker sent the appraisal to the new hard money lender and we await the (hopefully) increased loan value. Settlement w old bank is $297,500. Lenders points are 6. Interest rate 12%. I have $33k and the potential to raise $5-15k more. Any overage I decided I will fully fund the 'rental emergency fund' so that is at $15k

Prayers!

(for those who asked I have no other option to keep the house except to settle out w the bank.)

Update-broker called

January 25th, 2014 at 03:33 pm

Update.

Broker called. He is at some lenders convention in Dallas and the PRESIDENT of the company we are going through for the loan was there and they had lunch. President said they really liked the deal, neighborhood and the house and will Definately look at realtor report.. also said he may go to 70% to do the deal. Realtor sent me a text asking for my email addy and is sending me questions tonight for his report. Target for his report Monday 3pm


I want $312k.. 65% of 480k or 70% of 445k

This means I only have to come up with $7-8 grand and $10 k tax escrow (that I hold) and $1060 for insurance.

FINGERS CROSSED and prayers.

Payment tho w $312k is $3120.. need to exit loan asap!!! (but looks like have to hold it a year).. need to get rid of that 2 flat and continue to verify the loan requirements for my exit lender so I am sure to meet them.

312k at 7% is only $2075 or 6% $1870

Rachael

Email sent to my broker this am (waiting on realtor to drop by)

January 24th, 2014 at 11:16 am

Mark (this is the mortgage broker),

It is my position that the BPO should not be seen as relevant. Guy was not local, was unfamiliar w the area, has very little experience pricing and selling homes as a whole and all the homes he did work on were lower priced short sales. He also admitted to me he could not find enough relevant comps and the report itself contained major errors which either indicate lack of knowledge or extreme carelessness. I am unclear on which one or both as some of the errors do not make logical sense (it is not logical to think having more than twice the lot size is worth $480 more or that square footage can be adjusted at $10 a square foot ). This guy got so lost on the way to the home.. I had to drive to meet him 'where he was' and lead him to the house

Major errors exist in his report such as
1. comps from different zipcodes, totally different neighborhoods, different school districts. "comps" were not relevant
2. undervaluing lot size (adding $480 for a 1/4 acre lot size difference, for example)
3. mis-stating relevant facts on my home as well as other homes
missing fenced yards, finished basements, updated items, major improvements
mis-stating lot size for my home and other homes
listing a 'crawl' as a full finished basement
average rent on the home is $3200, not $1200
4. adding square footage adjustments at the value of $10 a square foot
5. some comps were frame (vs brick) with no price adjustment
6. failing to account for updated status of my home as compared to other homes
My home has new kitchen, baths, tile, expert finished basement. Many comps had brown VERY old vinyl, old cabinets, kitchen (evidnet in pictures easily available online)
7. using 'distressed sales' as comps including one auction sale and short sale properties

As you are aware I have asked one of the top realtors in town to come over today at 12:30 to give me a fair value of the home. I expect that value to be around $470-490k but will wait for his report. I will ask him to substantiate the value with comps and whatever else is necessary to send to the lender to revise their value.

I still do need to close by 1/31

Thanks for your help. It is really appreciated
Rachael

BIG HICCUP in plan-LOW BALLED BPO

January 23rd, 2014 at 06:36 pm

BIG UPSETTING NEWS!

I was concerned w the BPO guy.. he was from over an hour away, lower working class town and got so lost on his way I had to drive to get him and I did not connect with him personally very well, but I still thought the house value would be clear to him w the comps I had, homes in area etc..he did not take hte comps or info though

He MAJORLY LOWBALLED THE BPO!!!!!!!!!!!!!!!!!!!!!!!!

MAJORLY

He put the house at $397k (the bank I am buying it from even had it higher -at $430k) . I have the BPO and he used homes in different ZIPCODES, frame vs brick, totally outdated etc.. no finished basements and differnt neighborhoods.. not similar neighborhoods at all... I called him on it and he said 'I could not find comps and your comps were miles away"

My comps were 1.1 miles away and he is an idiot.

Anyway.. long UPSETTING story short.. my broker thinks this guy is an IDIOT (I AM SO UPSET I HAVE ONLY A WEEK LEFT ) and he will talk to his lendr tomorrow and suggested I have a realtor dispute the comps. He will tell the lender I am doing that and will have it shortly. I called the best realtor (or most well known) here in town and he is coming over at 12:30.. on a coincidental note he lives in the same subdivision and was shocked by the BPO price.. and he knew the house (from the outside)

He comes at 12:30 and will write something up soon therefater

Broker says he has seem low BPOs before .. but none so poorly done or so off. He has seen them disputed and values increased though . This guy put $500 for the difference between a .16 acre lot and my .67 acre.. did not include all sorts of stuff.. jsut VERY BAD...I looked thsi BPO guy up online and dug up all sorts of bad things on him too.. I AM SO UPSET.. can hardly talk anymore.

I am going to neaten up the house again (pretty neat from the other day) and read and go to bed.

Onward

I WILL get this house damnit! and I need to get this loan firmed up ASAP

Business loan fell through
Low rate person fell through

Got 1 lender w 7 points, 18 months, 12 percent, wants an appraisal first and can not close by next week
and 2 at 12% ONE YEAR.. also want an appraisal..and can not close by next week

I need to firm up this 'bird in the hand' immediately.

Thanks for listening and the support.

Rachael

update on house situation #9

January 22nd, 2014 at 01:36 pm

Ok.

BPO guy just left.. hoping for $470-480k. I should know TOMORROW

Low rate lady was not able to come through
Referred me to 2 other guys (1 has not called, 1 is at 13%)

Got other acceptances contingent on my sending in various things but n one less than 12%

Have not had time to submit all info for business loan.. will submnit today or tomorrow

providd they increase loan to 65% of whatever value BPO comes out at , if house values at

$470k. I have to come up with $14k + $10k tax + pay 1 year insurance

$480k.. I have to come up with $8k + 10k tax + 1 year insurance

Hope to hear TOMORROW

I want to get a firm approval, amount and close date

Title in works

if house value at only $450k I have to come up with $22,900 (OUCH)+ $10k tax + one year insurance

PRAYERS.

I showed BPO comps, pictures of house before I bought and after and a list of changes I made . he said he was not able to 'take anything' from me so just 'viewed info' and left it

he said he felt 'ok' w value if comps were within 1 mile or so. I have a ranch so hard to find comps as their are less ranches but my comps are between 1.1 and 1.7 miles away

Fingers crossed!!!!!

update on house situation #8

January 21st, 2014 at 03:40 pm

Update

BPO TOMORROW at 2pm. trying for $470k
orderd title ,, takes 2 days
good call w LLC loan folks.. lots to fill out and submit

NO NEWS from lower point lender (although she did ask for more documents)

I want news from her.. feel 6 point guy is just too much cash!

Wish me well on the BPO..

Realtor was in same area code but not from a large office or one I knew.

Thoughts on how to make the house appraise higher ??(outsdie of comps which I have)

Thanks
Rachael

update on house situation #7

January 20th, 2014 at 04:27 pm

Hi all. Update.

Not as much news as I had hoped but one more day gone.

Today was a bank holiday so banks/lenders not open.

I did not hear from the 4 point person (she was off)

tomorrow
1. set up BPO for this week.. asap
2. order title (assuming the close) $5-600
3. conference call with business lenders.. 5-9% (but may not be able to close in time).. expect no final word from them until Wed or so
4. hear from 4 point person

I REALLY want the 4 point loan . I do not want to have to come up with all this excessive cash when I do not have the 'rental home emergency fund' fully stocked at $15k and being so close every month .. just lots in the air.

Exit plan.. got a lender who can loan at 2 points over whatever the 30 year rate is at hte time.. when I have owned hte house for a year (so year and a day).. provided my score is 640+, the foreclosure situation is CLOSED in someway.. (short sale best.. sold is worst but just closed).. Costs would be almost normal loan fees.. no points and can do 30 years. This rate is NOT high because the only other potential loan is FHA and their premiums, fees are so high that 2 points higher is still LESS than them. Besides it will be hard to qualify for FHA in a loan.

Either way I have these loans for 2 years but need to get out of them asap

so . say if business loan comes through (5-9%) and is longer term.. 15 years. I will just refinance right away (actually after 6 months).. hard money folks have a 6 month prepay penalty

Onward.

I am proceeding with ALL loans at onnce so I am sure one will work out by the 31st. 6 point guy is confident he can close by 31st and nwo that I understand what it takes to close. I think 4 point person can too (if they accept me.. helloo.. need to know that asap) and what the house value is and loan amount.

I will withdraw $30k from Barclays tomorrow to prep fr close. I need final amount asap.

update on house situation #6

January 19th, 2014 at 02:01 pm

HI all,

update.

It looks like 12% is the rate I will get. No one has beat it.

TOP 2
1. 12%, 4 points, 2 years(that is a verbal,. they are still reviewing, formal offer Monday. Thsi is being house underwritten so may be able to stretch loan to value some which is a BIG plus. see below)
2. 12%, 6 points, 2 years

I also have a business loan application in the works (LLC real estate busienss.. sortof a long shot but if it it works I have NO POINTS and 5-9%) I am getting help on that and will not know for likely a few days or a week

Plan
1. proceed with loan #2 to BPO (brokers price opinion).. same with loan #1. I need as little down as possible.

I initially had the loan amount as between $292,500 and $297,500. Problem was I had NO IDEA points or closing costs would be so high (now I know). That is approx 65% of a house value of $450k. I do not feel comfortable coming up with 4-6 points, $10k taxes escrow and potentially $4k closing costs... (see my side bar I have essentially $30k) and my personal and rental escrows are not at full amount yet.

(I am figuring tax escrow because there is no way I can escrow $8-900 a month for it.. so I need to set that cash aside up front)

PLAN. I pulled comps again and have comps at $470= (real comps.. not stretching it). I have asked lender 1 and 2 and to see if they can either go up to 68% of $450k or 65% of $470k. rthat is approximately $305k. I will have news only after the BPOs (realtor comes out and give value of house) this week. If they can do that (increase the loan amount) .. the 4 point person nets out to a cash down of $7500 (points/cost overage), $10k escrow, $1030 (pay insurance a year up front. they require it).. 6 point guy comes down to less than $30k

I have paid for the BPO ($250) for lender #2 and will set that up asap. And call lender #1 Monday for news.

Fingers crossed

My mentor say the only way he can help me on such short notice is to buy the house himself and lease it back to me (no way!)..and at 13% interest and unknown costs.

I do have my exit plan fairly well cemented.. so I only need the loan for just under a year.

More news Monday (and hopefully 4 points people come through. they are doing a CMA now and if it is strong enough will not need a BPO or appraisal)


I am still in the game. Smile

update on house situation #5

January 17th, 2014 at 04:33 am

Hi all,

no big update yet.

I hear today on all the rest of the lenders. FINGERS crossed for a lower rate/cost loan.

Current front runner is 6 pts, 12%, 2 years (expensive)

I can refinance out in approximately a year though.

I will work on lining up business credit as my next activity after the house settles in some way. IF I had business credit I might have been able to do this cheaper or easier. I AM applying for a business credit loan (I have an LLC) at between 5-9%. Had my accountant write a business plan, financials last night. PRAYERS that works. that will significantly cut my costs. (will likely take more time though to get a 'final approval' but hoping for preliminary news today with 'contigent on.. blah blah' If we can get approved. I am sure my accountant and I can come up with whatever doc needed. (but I have the past BK and foreclosure. ) we will see

I work 'at work' today and have a 1 on 1 with my boss today.. I work at home 2-3 days a week which has been a LIFESAVER during this process.

Looking forward to getting good news today and making decisions.

NEED the house to appraise out at $470.. will revise my loan with the 6 point, 12 % , 2 year guy to $470 so BPO person has new target to reach.

Thanks for all your support. Today and the BPO or appraisal day are the next big days. HUGE days. After the appraisal is when I will know the actual loan amount.

update on house situation #4

January 16th, 2014 at 08:28 am

Hi all,

House update #4.

I am EXHAUSTED and stressed from managing this. and working full time

(k ....no time to be tired at all)

Acceptances
1. 5.5 points, 12% but wants tax returns, proof of income etc. I have (sending this am)
2. 4 points, 12%, wants above info too

(I feel these are not really accepted until they have reviewed my info.. and they want BPOs. brokers price opinions but just pulled new comps.. house may appraise higher than 450)

The below are in the works (these people appear they will be LOWER)

..basically 3 brokers.. 2 of which wnat me to send 6 months bank statements, paystub and personal financial (in the works in this am)

I shoudl hear from these lower rate 3 on FRIDAY (tomorrow)

the above 2 acceptances are being told I need a day or two to think on it (while I still feed them docs)

ok talked to my mentor (relieved and happy look)

He thinks he can help me find the money too .. was impressed with the deal (wowzer).. he can only lend at 12% w 4 points but w him, I would assume no issue with docs (not that I can not prove income just my financials have been complicated) he is ALSo going to talk to some folks who have IRAS/401ks or just $$ and see if they want to lend to me.. 18 months. Hopeful look

My mentor on the 2 flat thinks I should definately short sale it (thanks 'anotherreader') and he wants to handle it (dependent on his review of info I just ssent). If he handles it I get a cut of the profit (few grand) and he can time the short sale as we need too so I can keep collecting rent to help with costs.

NEWS From Mentor today and tomorrow
NEWS from lower rate guys tomorrow

Other (higher rate guys) are held off to tomorrow

I have $30k liquid cash and think I can get $10k more

I do not want to disturb my emergency fund for myself or the '6 homes/3 units'

Onward. It is 10:30 here. hope to have all docs/info sent by noon.

if my mentor says ok to short sale I will call bank and get that started

update on house situation #3

January 15th, 2014 at 10:47 am

Update from today

per foreclosure attorney..
1. 'deed in lieu'.may show in credit report but does not show on court case. case is dismissed once deed given back
2. he does not think other side will want to do deed in lieu because of extra attorneys fees.. (I will need to call them)

per real estate attorney
1. I can not buy something from myself and call it a purchase.. he is not very creative but very good

per accountant

1. I can purchase from myself if I use LLC/ownership details

Offers so far

1. 6 points, 12%- 2 years
2. 4 points, 13%-1 year, renewable in 3 month increments

I have asked both to go back and see if they can get better offers

I am still pending on 3 more offers.

Loan amount will be determined based on broker price opinion/like an informal appraisal by a local realtor (so loan amound and $ I have to come up with is fluid until themn.. will not know how much I have to come up with)

On a GOOD NOTE..talked to a broker guy I have been in teh works with and he says he can REFINANCE me out (with ownership in my name) in a year.. I got his terms (640 score, same income etc).. That sounds like an ideal exit strategy (no need to deal with ownership issues!) Loan would be 2 pts higher than normal rates at that time (5-7%) and normal closing costs but actualy that rate is FINE because with the new heightened FHA premiums that is just about the same.

AWESOME NEWS.

I finally reached my real estate mentor.. I talk to him in detail in 45 minutes

Concerned about cash to close.. (and I can not afford 12%w tax, insurance escrow.. another $8-900) this means i have to come up with cash (now) to escrow for taxes/insurance (another $9-10k) so I have that paid

Praying house appraises at $450k or more
65% loan to value of that is $292500

Settlement w bank is $297500

Points worse case 6=18k on $300k loan)
PLUS tax/insurance escrow $10k (this is an escrow for me and held by me)


On another (helps me feel better note)... for those following me.. the last settlement I tried to work out w that FHA niche loan (through a bank) was at $302k, $20k down in fees (does not count towards loan) and 6.75% but w FHA mortgage premium was almost $3200 a month. Even at 12% I am only $700 a month over that and the research this forced me to do may have gotten me an exit strategy (without ownership issues) in a year

I will wait for more info, continue researching and then have my accountant lay it all out (me too) and figure if it is worth it and can I do it

Onward but WISH COSTS and RATES WERE NOT SO HIGH!!!!

update on house situation #2

January 14th, 2014 at 05:40 am

update on house situation #2. I have 2 weeks left to get the money

Essentially most everyone has been called (but searching for new lender contacts today). I have 4 people on the 'hook', I WILL hear preliminary news tomorrow on at least 2. I had planned to refinance out in a year (via purchasing it from my LLC) which made the higher rates not so bad. I just found out that I may not be able to. My plan was to take title in my LLC and then buy it from myself in a year (after last foreclosure sale/deed in lieu date.. my 2 flat.. I just withdrew my attorney from that case). There is some concern that is not an arms length transaction. The lender raised that concern and I botched the answer.. possibly losing his confidence. I am unclear if he is going to back out or not. My accountant says there is way around that. I need to get clear on what that is and STOP talking when I do not know the terms.

Today

1. call attorney and FHA underwriter on arms length issue
2. call my foreclosure attorney ( that I just let go )and ask him what other outcomes there are to a foreclosure case outside of deed in lieu and sale
3. call attorney for bank (or rehire above attorney to do so)on 2 flat in foreclosure and offer to give back deed in exchange for some other marked resolution than deed in lieu.. like have htem dismiss the case etc.. This is because the waiting period for foreclosure starts after the deed in lieu or sale date but there is NO WAITING PERIOD if neither of those occurred and the case just faded away.. Maybe if these guys get the house they can just make the case go away

I need to get clear on things and keep pushing

Yesterday was a terrible crying out of control night when I got that arms length transaction news. My deal hinges on getting out of the hard money loan in less than 18 months.

I do not want to pay hard money for 3 years aqnd it does not make sense and no one wants to lend for that long.

If I can not buy it from myself (LLC). I have to wait to refinance. there is THREE year waiting period w FHA to refinance

Onward!

Update on house situation

January 10th, 2014 at 08:09 am

Hi all,

Using this as a diary to laugh or cry at later.

Update on house short settlement (where I live now) trying to buy out existing mortgage at a discount and take ownership of property singally without my ex. Settlement $297,500.. Value $450,000. I can not get a bank loan due to pending foreclosure on a rental and there is a year waiting period from the END of that. I had my attorney withdraw and will no longer fight that.

Made 36 calls (had a friend help) !!! Crazy insane.. talked to several folks.,and have 4 applications in the works and expect news on at least 1 of them today. Waiting on several more calls back too.

Points and rates are likely to be higher than I want. These are true hard money folks. I have one (non hard money guy) but he does not seem as strong .. I will hear from him mid next week. Still hoping for 8% rate and 20k down but folks are wanting 5+ points but can wrap them in the loan .., but not if loan to value goes over 65%

We will see.. news soon..

I want to settle this so I can RELAX and start my financial plan and move on. These last 2 homes represent the last ties to the past 'downfall'

good month w 6 homes and 3 units... low costs.. all rents in and cut insurance (yearly costs) by over $2,000. Will make efforts to raise rents across 3 units this year.

also started 401k this month.. 8% from me.. 3% from work.. (vested from day one) and $125 auto savings into emergency fund..

Making progress just need to settle house.

Investing in the new year

December 26th, 2013 at 07:37 am

Hi All.

Today I start 'looking for the money' for my house deal.. fingers crossed for 'not crazy rates'.. 6-8 would be IDEAL!! Prayers..

I am also going to start investing some of my cash reserves vs parking them at Barclays (still a good choice but only pays .09% )but I have only 4 years left of my 5 year goal and need some extra 'umph' to reach my $300k cash goal. Any cash I have now will likely be consumed this month with the house downpayment/fees or whatever..so will again be starting from almost zero.

I have $64k parked at Barclays. (some of which is my security deposits/tax escrow so not reflected in networth).. the rest are various emergency funds and savings.

I think I can take $10k of the security deposit escrow and invest it.. also will start investing with my ROTH IRA.. everything else will remain parked

Investing strategy is the Dogs of the Dow approach.. http://dogsofthedow.com.. hoping for 20% and up returns!

Really excited.. and once the house works out will start investing more but now need to conserve as much cash as I can for that big (HUGE) unknown.

Essentially if this approach works and I can get an average of 20% returns.. once I have $150k in the market I am just 4 years off from my $300k.. so need to get cracking on saving (of course once the house clarifies). I am also 10 years away from $929k without further contributions once I have $150k working for me.

What a wild crazy year it has been! I know some of you think my methods are a little crazy and certainly risky . but I set my goal and AM going to reach it.

The bank accepted!! Now need to find the money.

December 20th, 2013 at 02:47 pm

Hi all,

The BANK ACCEPTED at $297,500. House should firesale at $380k and sell thru a realtor at $410k realistically.

Now I have to FIND THE MONEY.

$297500 is 65% of $419k. Most hard money lenders want 65% loan to value.

Will start making calls next week..It would be awesome if I could get 6-6.5% but I can do up to 8%. if I get 6.5% I will try to keep the loan long term and pay off early.If I get over that interest rate I have to refinance and have to wait 1.5-2 years to refinance but it will be an FHA loan.

Why so willing to take higher rates long term??. I would have to go to an FHA loan on a refinance anyway and wiht FHA mortgage premium I am over what a 7% payment would be anyway.

Prayers for creative financing solutions to appear.

Smile

The bank called!

December 19th, 2013 at 02:15 pm

Hi all,

For those following me. the BANK called to ask me about my offer??!! WOW.. I have never had the bank call. This is my offer to 'settle' on my house that is in foreclosure. Sortof buying the house back from the bank (and also taking my ex off it)

I talked to a supervisor this am and had a good talk. he said he would personally submit my offer to 'some committee' and asked me to produce comps and a letter explaining how I came up w the offer. He said he wanted to work this out so it is win win and we are not like in a tennis match batting the ball back and forth. Sounded positive and REASONABLE.. that is all I want.

I had my property manager (also a realtor )pull some awesome low comps and have my accountant whipping something up that shows the banks holding costs if they do not sell to me.. etc

I will submit all proof tommorrow and am praying for good news next week.

Remember I do not have funds yet so if the offer is accepted (maybe WHEN it is accepted). I still need to find funds but for some reason am feeling more positivve with that.

I want to FEEL SETTLED and RELAX in my house.

Prayers. Onward!!

Sad news-offer not accepted`

December 13th, 2013 at 02:36 pm

Hi all,

using this somewhat as a diary too (hoping to read back on it someday and laugh).

the 'settlement/short payoff' for my house was DECLINED..No counter but they apparently do not always counter offers.

Offer $260k.. house worth at a firesale $380k and I want to live here.

Reoffered $285k today.. fingers crossed.

I will figure out a loan/money ... if it can work out once offer is accepted.. just need to get a number.

I actually got this news yesterday but was very upset. Decline was a HUGE surprise. i was so confident I was nearing the end.. I was super down.

After several years of hell.. 4-5?? I just want things to settle down and calm down and would LOVE To settle into my house..

Fingers crossed and prayers for a good response next week.

I DID ask them to counter if the offer was not sufficient.

Part of why they may have refused was because they upped the value in their system to $380 vs $350

Onward.

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!


Murphys Law in spades!

November 17th, 2013 at 05:13 pm

HI all,

I am struggling here.

Good news

1. house foundation work will be complete tomorrow (that was the update Saturday) we just had a massive storm though.. PRAYING HOUSE IS OK
2. looking good for a renter in this place next week
3. also looks good to rent the garage separately.. means an extra #100 a month
4.short refinance is looking better.. not for sure yet but looking better.. (scary times). appraisal Thursday (should pass) and then I have to pay 3 trial payments in a lump sum(see below bad news) and then it goes to the underwriter for final approval and close date

BAD NEWS (keeps coming)

**I am feeling INCREDIBLY SHORT OF MONEY**

1. still have to come up with the $6k (rest of payment) for the foundation work
2. short refinance requires 3 trial payments.. 2 upfront $6k and one certified check brought to close
3.short refinance also rquires $11k 'buyer contribution'
4. a TREE fell across the 3 units. I have owned them less than 3 weeks and a tree falls on them?? crazy...They are insured but my deductible is $5k (more standard on rental polices).. looks like that
did not pay off.. so more money but talking to the manager and looks like here are the costs (1) remove tree (2) check roof and fix small crack in drywall (hoping there is no major roof damage!!.. roof new as of 2008). I am seeing the damage tomorrow..

Just keeps coming. I need to have these extra costs stop! and get some extra income and stabilize..

Too much money to have to come up with in such a short time frame... essentially $26k.. if you look I have only $30k savings....scary.. need to stop the bleeding

talked to my accountant yesterday (pre-tree falling) and I was feeling stressed then with the short refinance money requirements and he said (paraphrasing) you are trying to set yourself up in 5 years to retire.. it is going to be hard and you are going to be short.. just hang in there.

Vote of confidence felt good but SCARY TIME right now

need the rental filld and no more large expenses and to 'settle' and start saving again.

Crazy

A friend owes me $5750.. hopig praying he comes through soon

Someone else owes me $5k.. asking for that too

and with the closing of the not for profit business.. I should get $8-11k..

Prayers!.. (looking around for stuff to sell now)





Question-Short Refi (keep the house??)

November 13th, 2013 at 07:47 am

hi all,

Quick question.

1. Do I do the short refinance on my house or let it go? All responses welcomed.

FACTS
1. I can do a short refinance on my house for $302k, initial rate of 6.75%, payment $3200. $11,000 down
2. I can immediately refinance this (already checked) to 3.65%, $2400 a month
4. house worth $400-$410k
5. I have already filed for BK Chapter7 years ago so the house is off my credit report. If I 'let it go' it will be sold by the bank but have no impact on my credit. I have 2 years for that to occur but it will be stressful on me.

PROS of SHORT REFINANCE
1. no stress of not knowing how long I have the house
2. good deal on house
3. I need to live somewhere. I am not going to find somewhere for this much in the area I live in and rates may go up and I will have to have a significant down payment
4. house has been well maintained .. new roof, furnace etc and is 'known'
5. maybe get some house value appreciation as homes go up again
6. excitement of being able to 'live in the house' again. I feel like a boarder now and do not do much to fix it up etc. I guess thinking of having 'a' house or 'this house' fills me with excitmeent and joy. I have lived with instability for so long

CONS
1. I will significantly cut into my ability to save with picking up a house payment now if I do not increase my income to make up for this extra expense. I had not planned for one for 2 years more
2. Cut into savings now with the $11,000
3. I have a LOT in the air and things are stressful right now (one house not rented, just put $12k into a rental and =the 6 homes and 3 units are new to me still,though fully managed)

Mitigating factors. I can likely pick up extra cash with my side work to offset part of the cost. $1-2k). I expect an uptick in energy etc and joy witih being 'settled'

Thoughts guys?

My heart goes with the house (and my accountant says it makes sense). My fear is that I am feeling unstable now.. though we have 4 showings for the house this week. If hte house was rented and I have more savings I would feel much more at ease

Scrambling!! good & bad news foundation issues and short refi

November 6th, 2013 at 06:00 am

Hi all,

I think it is going to be fun to read back on this all (later)..so writing whenever I can to document the journey.

VERY BAD NEWS.
The excitement I felt with filling my vacancy?? VERY short lived.. an hour. Section 8 came out.. inspected and said the they would not take the house into the program. This is after the house being in the program for the past 10+ years. Guy said the walls were bowing in on one side. The house in on a hill. I drove out the next day to look and they were. I was told there were water issues and some bowing on the purchase but was also told they were stabilized (cringing.. pls no 'I told you so' or negative comments). Anyway.. turns out they were not stabilized. I got some quotes.. talked to several people and in short it will cost $12,000 to rebuild half a wall and put inside walls for the other two walls, put new center piers and regrade the whole yard and regrade the house next door (which I own). The house next door will cost $5100 to put an inside wall in there. I iwll do that next year or so. All this will be guaranteed by a long time contractor so I feel good it will be fixed for good and not come up again.

So...(stressed look).. the works starts Thursday..should be done by Friday next week. Have a potential renter we are screening now (non section 8). If she works great. if not we will open it up to Section 8 and non Section 8 after the fix. I need it filled asap. Bad time of year to rent property.. Upsetting!

Expensive lesson. GET a GOOD INSPECTOR!!! and evaluate all potential water/foundational issues thoroughly!

That said, I am relieved this is just to the 'expense category' now. but a large one

I am also relieved I had my $8,000 large expense, 6 homes fund which I will fully use up with this and need to rebuild ASAP

So. I need to come up with $4,000 in the next week (after the $8k) and it will come out of savings

**I did check the rest of the homes and the 3 units and no looming foundational/water issues**

POTENTIAL GOOD NEWS

Bank accepted the offer for the 'short refinance'. I have to formally apply for the loan now (will happen today) but if my income is as I said it was on the phone and everything else is hte same (and it is) the loan should go through. But will be nervous until it is 'approved' (week or so?0

I need to come up with $11,000 'buyer contribution' in 30 days and the INTEREST RATE IS 6.75!! I can refinance (and will) but will have at least 1 month or two (maybe more) of large payments at that rate. I will look into refinances after I am approved (but before I close) so the new refinance to lower rate can go as quickly as possible.

However.. loan appears to be low enough that I will already have 20% in. This is a niche loan and only one company does them so they dictate rates, feees, how it works but again no prepay penalty so I can refinance and need too. Payment is HIGH>

So. all in all this year is one of 'closing doors' and 'reopening others' and getting my financial house stabilized and on the right track. I am also closing my not for profit in these next 60 days.

Those who have read some know that I have had a rough 4-5 years prior and am just coming out of that to rebuild. I have a 5 year plan that is more risky up front but less as it gets further along. I am 6 months into that and hitting a BIG hiccup right now.

My plan right now is to 'gather this $20+k' for the foundation and short refinance, establish a tighter plan for the rentals ( I meet with both managers this week, save and EARN as much as I can and rebuild that savings immediately. I can not go with out a fully funded emergency fund and large expense fund across the homes and 3 units. I want to STABILIZE right now and get things under control.. too many balls in the air.

More later.. just unloading and catching folks up.

Thanks for reading.