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 #3
January 15th, 2014 at 06:47 pm
January 15th, 2014 at 06:58 pm 1389812323
With the two options on the table, are you considering #1 or #2, assuming that there is no counter offer option?
Totally curious as to the real estate taxes on this transaction. If you escrow your own account you potentially have until 6/1 which I think is DuPage Couty's first payment date.
Anyhow, sounds like you're moving in the right (yay!) direction.
January 15th, 2014 at 07:34 pm 1389814466
January 16th, 2014 at 03:57 pm 1389887827
January 16th, 2014 at 04:38 pm 1389890288
For offers 1, 2 .. I feel they are not accepted until more info is in.. so unclear and see update 4 for new offers and hopefully Friday all offers will be in.
CRAZY!
(Another reader) see update #4