Buying a foreclosure ,Real Estate advice needed.
12-08-2010, 08:49 PM
#1
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Buying a foreclosure ,Real Estate advice needed.
In the middle of buying a Fannie Mae foreclosure, and just want to make sure that I am not getting raked over the coals on or by , Mortgage lender, listing agent , so on and so forth. Any advice appreciated.
couple questions concerning FHA as well.
couple questions concerning FHA as well.
12-08-2010, 09:07 PM
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Post your Q's. Get a home inspection, use the inspection to further negotiate the price lower, make sure you want to be there for at least 3-5 years, and enjoy your home...
12-08-2010, 10:07 PM
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general questions I guess..
do not think that I can get price negotiated further . Its a fannie mae forclosure. Forclosed on 245k , buying 149K.
I offered 130 first, they didnt even take, just rejected. did the same with 142,500 offer. Submitted 145K , they countered at 149, and paying standard 3.5 percent closing.
I Went to a mortgage broker , got all paper work submitted, got lucky (i feel ) , and locked on a 4.125 rate.
started disecting paper work , she never covered with me , that they would be charging 2 percent premium on origination. I am paying appraisal.
I was messing around and saw on Homepaths site that the property that I was purchasing was eligible for no PMI.
approached lender with this , and her immiediate response was not with her parent company. I think maybe she thought a little bit and did some digging. She emailed me several hours later saying that she found where I was correct , but now interest rates were over a point higher it would not be in my best interest to do . Also , It was FHA , and different rules applied.
WHat I do not get is , In my opinion , I am paying her a premium to do loan. She did not see that detail. When she did in fact find it ( after I pointed it out) , she acted like oh well , too late. Sorry but 107.00 a month extra for the next four or five years , is hardly a oversight for me.
House was built in 07 , and is not a bad deal for me , not my dream home , but works good , because it sits on 3.5 acres . And I own 5 acres already that are connected to it. I was going to build a liveable barn on mine soon anyway. So this gets me on my property , with a lot less hassle of building and traveling 20 mins each way back and forth to my present home.
Good deal or not, if I am going to get raked over the coals because lenders think that it is a privelage for a buyer to obtain a home in these economic times , they are wrong.. .
do not think that I can get price negotiated further . Its a fannie mae forclosure. Forclosed on 245k , buying 149K.
I offered 130 first, they didnt even take, just rejected. did the same with 142,500 offer. Submitted 145K , they countered at 149, and paying standard 3.5 percent closing.
I Went to a mortgage broker , got all paper work submitted, got lucky (i feel ) , and locked on a 4.125 rate.
started disecting paper work , she never covered with me , that they would be charging 2 percent premium on origination. I am paying appraisal.
I was messing around and saw on Homepaths site that the property that I was purchasing was eligible for no PMI.
approached lender with this , and her immiediate response was not with her parent company. I think maybe she thought a little bit and did some digging. She emailed me several hours later saying that she found where I was correct , but now interest rates were over a point higher it would not be in my best interest to do . Also , It was FHA , and different rules applied.
WHat I do not get is , In my opinion , I am paying her a premium to do loan. She did not see that detail. When she did in fact find it ( after I pointed it out) , she acted like oh well , too late. Sorry but 107.00 a month extra for the next four or five years , is hardly a oversight for me.
House was built in 07 , and is not a bad deal for me , not my dream home , but works good , because it sits on 3.5 acres . And I own 5 acres already that are connected to it. I was going to build a liveable barn on mine soon anyway. So this gets me on my property , with a lot less hassle of building and traveling 20 mins each way back and forth to my present home.
Good deal or not, if I am going to get raked over the coals because lenders think that it is a privelage for a buyer to obtain a home in these economic times , they are wrong.. .
12-08-2010, 10:15 PM
#4
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This is just what we did on a Indymac foreclosure. We went FHA as well. DTI limits and max you can borrow at the time was around $271k the rules were changing almost daily, it wasn't a fun process. Like you said you can end up with a killer deal if you can stand the stress and be calm about the process.
12-08-2010, 10:18 PM
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general questions I guess..
do not think that I can get price negotiated further . Its a fannie mae forclosure. Forclosed on 245k , buying 149K.
I offered 130 first, they didnt even take, just rejected. did the same with 142,500 offer. Submitted 145K , they countered at 149, and paying standard 3.5 percent closing.
I Went to a mortgage broker , got all paper work submitted, got lucky (i feel ) , and locked on a 4.125 rate.
started disecting paper work , she never covered with me , that they would be charging 2 percent premium on origination. I am paying appraisal.
I was messing around and saw on Homepaths site that the property that I was purchasing was eligible for no PMI.
approached lender with this , and her immiediate response was not with her parent company. I think maybe she thought a little bit and did some digging. She emailed me several hours later saying that she found where I was correct , but now interest rates were over a point higher it would not be in my best interest to do . Also , It was FHA , and different rules applied.
WHat I do not get is , In my opinion , I am paying her a premium to do loan. She did not see that detail. When she did in fact find it ( after I pointed it out) , she acted like oh well , too late. Sorry but 107.00 a month extra for the next four or five years , is hardly a oversight for me.
House was built in 07 , and is not a bad deal for me , not my dream home , but works good , because it sits on 3.5 acres . And I own 5 acres already that are connected to it. I was going to build a liveable barn on mine soon anyway. So this gets me on my property , with a lot less hassle of building and traveling 20 mins each way back and forth to my present home.
Good deal or not, if I am going to get raked over the coals because lenders think that it is a privelage for a buyer to obtain a home in these economic times , they are wrong.. .
do not think that I can get price negotiated further . Its a fannie mae forclosure. Forclosed on 245k , buying 149K.
I offered 130 first, they didnt even take, just rejected. did the same with 142,500 offer. Submitted 145K , they countered at 149, and paying standard 3.5 percent closing.
I Went to a mortgage broker , got all paper work submitted, got lucky (i feel ) , and locked on a 4.125 rate.
started disecting paper work , she never covered with me , that they would be charging 2 percent premium on origination. I am paying appraisal.
I was messing around and saw on Homepaths site that the property that I was purchasing was eligible for no PMI.
approached lender with this , and her immiediate response was not with her parent company. I think maybe she thought a little bit and did some digging. She emailed me several hours later saying that she found where I was correct , but now interest rates were over a point higher it would not be in my best interest to do . Also , It was FHA , and different rules applied.
WHat I do not get is , In my opinion , I am paying her a premium to do loan. She did not see that detail. When she did in fact find it ( after I pointed it out) , she acted like oh well , too late. Sorry but 107.00 a month extra for the next four or five years , is hardly a oversight for me.
House was built in 07 , and is not a bad deal for me , not my dream home , but works good , because it sits on 3.5 acres . And I own 5 acres already that are connected to it. I was going to build a liveable barn on mine soon anyway. So this gets me on my property , with a lot less hassle of building and traveling 20 mins each way back and forth to my present home.
Good deal or not, if I am going to get raked over the coals because lenders think that it is a privelage for a buyer to obtain a home in these economic times , they are wrong.. .
It wouldn't be uncommon for a mortgage lender to charge a flat rate 2% for points or some sort of origination fee. You can shop around with different lenders and try to get a better package. I would take your package to another lender (I would NOT use Rock Financial or 5/3rd bank if I were you... TONS of hidden fees and BS), and see if they can point out excessive fees or if they can get you a better deal. If its the best deal you can get, and you're happy with the payment try to get passed the feeling of getting "raked over the coals" just to have the "privilege" of getting a mortgage. These fees are negotiable (you can go back and say that you're walking if this or that isn't removed, but you may lose the loan), and common. They exist even in a good market.
PMI isn't always a bad thing, and you can generally have it removed with an appraisal if you can show 30% equity in the property, if you want. Remember, it is insurance and for some people its worth it. I'm not saying you're going to have financial trouble, but if you do it is nice not to have a looming balance hanging over your head if you did happen to fall on hard times.
Negotiating after an inspection is a lot different than negotiating before an inspection. First and foremost they have spent a lot of time and money on your sale by the time it reaches the inspection phase. Secondly, and just as important, after your inspection they can no longer claim that they didn't know that the furnace was bad, or that the HWH was bad, or the roof leaked, etc. They have to either disclose the poor information, fix it, or give you a credit to get it fixed. They're not going to renovate the house for you, but you can generally move the price about 3-5% if you find some issues on inspection (and don't be turned off WHEN you find issues on inspection - that's what they're paid to do).
12-08-2010, 10:21 PM
#6
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2% origination is outrageous and so is 3.5% closing cost + appraisal. I don't know way to get around PMI unless you are putting 20% down or doing maybe a 10% down, 10% second mortgage and 80% primary mortgage.
My entire refi that I am doing is less than 2k total costs + prepaids for escrow.
My entire refi that I am doing is less than 2k total costs + prepaids for escrow.
12-08-2010, 10:25 PM
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2% origination is outrageous and so is 3.5% closing cost + appraisal. I don't know way to get around PMI unless you are putting 20% down or doing maybe a 10% down, 10% second mortgage and 80% primary mortgage.
My entire refi that I am doing is less than 2k total costs + prepaids for escrow.
My entire refi that I am doing is less than 2k total costs + prepaids for escrow.
3.5% closing costs seems high to me, but Fannie Mae might be forcing him to pay his own real estate commission. It's not uncommon. 3.5% closing costs may not be that bad if it is standard practice in his jurisdiction that the buyer pays for title insurance.
12-08-2010, 10:30 PM
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Just to put things in perspective! I had a house on Lake Murray
SC for sale 3 years. finally got an offer that was close to what I was asking. I had been looking at a condo that was in foreclosure but could not make an offer until I sold my house. I ended up getting a nicer condo for less than half of the original asking price!
My advice is stay firm, its a buyer market!
SC for sale 3 years. finally got an offer that was close to what I was asking. I had been looking at a condo that was in foreclosure but could not make an offer until I sold my house. I ended up getting a nicer condo for less than half of the original asking price!
My advice is stay firm, its a buyer market!
12-08-2010, 10:30 PM
#9
great remarks
Negotiating after an inspection is a lot different than negotiating before an inspection. First and foremost they have spent a lot of time and money on your sale by the time it reaches the inspection phase. Secondly, and just as important, after your inspection they can no longer claim that they didn't know that the furnace was bad, or that the HWH was bad, or the roof leaked, etc. They have to either disclose the poor information, fix it, or give you a credit to get it fixed. They're not going to renovate the house for you, but you can generally move the price about 3-5% if you find some issues on inspection (and don't be turned off WHEN you find issues on inspection - that's what they're paid to do).
12-09-2010, 12:11 AM
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SOrry , when I get in a hurry , I do so alot when posting. . I tend to ramble and not get my point across.
Lender called me on friday late and said rates hit 4.125 , do you want to lock. I said yes definately.
GOt my good faith estimate from realator a few days later and saw the origination fee, thought it was high so I googled average costs of origination fees for my area, and found they were generally 1%.
I called real estate agent and asked her , she said it wasnt that uncommon for lender to charge a little more when they get you a good rate.
My locked 30 year rate is 4.125 this is what rates hit for one day. I did not think I bought it down.
My origination fee is just under 2% one time fee. cost to loan me the money. And do all pertinent paperwork.
Fannie Mae properties have a deal going where they are paying 3.5% of total of closing cost.
On Fannie Maes listing site called Home Path , you can see where they are offering incentives like these , one other incentive they are offering is the no Mortgage insurance. Hence my question. about PMI rules.
I realize that if you put 20 percent down you do not have to pay these. BUt I have also been told somewhere along the way that if the home appraises at least 20 percent over asking , your equity takes care of the fees. But this is not true with FHA.
So my question on this matter is since Fannie Mae is offering the no PMI on their site , does it only include conventional type loans. It would normally list exclusions ,like doesnt apply to FHA loans. but I see no exclusions.
Lender called me on friday late and said rates hit 4.125 , do you want to lock. I said yes definately.
GOt my good faith estimate from realator a few days later and saw the origination fee, thought it was high so I googled average costs of origination fees for my area, and found they were generally 1%.
I called real estate agent and asked her , she said it wasnt that uncommon for lender to charge a little more when they get you a good rate.
My locked 30 year rate is 4.125 this is what rates hit for one day. I did not think I bought it down.
My origination fee is just under 2% one time fee. cost to loan me the money. And do all pertinent paperwork.
Fannie Mae properties have a deal going where they are paying 3.5% of total of closing cost.
On Fannie Maes listing site called Home Path , you can see where they are offering incentives like these , one other incentive they are offering is the no Mortgage insurance. Hence my question. about PMI rules.
I realize that if you put 20 percent down you do not have to pay these. BUt I have also been told somewhere along the way that if the home appraises at least 20 percent over asking , your equity takes care of the fees. But this is not true with FHA.
So my question on this matter is since Fannie Mae is offering the no PMI on their site , does it only include conventional type loans. It would normally list exclusions ,like doesnt apply to FHA loans. but I see no exclusions.
