Home > update on house situation #3

update on house situation #3

January 15th, 2014 at 06:47 pm

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.


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


4 Responses to “update on house situation #3”

  1. the deacon Says:

    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.

  2. creditcardfree Says:

    Good luck! The rates and points are so high because that is how risky the banks see the transaction.

  3. Another Reader Says:

    What did your mentor suggest? What happened with the short sale idea on the other property?

  4. Rachael777 Says:

    (deacon).. taxes ARE due 6/1 or something but I am unclear how much money I will have left over each month (loan not worked out yet either) so want to gather all taxes up now so I do not ahve to worry about it and maybe can invest it from now til June to make some money.

    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.


    (Another reader) see update #4

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