Home › Forums › Closed Forums › Buying and Selling RE › 3.75 no points
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CA renter.
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November 17, 2011 at 5:19 PM #19300November 17, 2011 at 9:12 PM #733154
snail
ParticipantCongrat…and please let me know your broker info.
November 18, 2011 at 4:46 AM #733167CA renter
ParticipantCongratulations, tugg! 🙂
Enjoy your new home.
Do you feel that you got a decent deal? What’s the price like, relative to bubble years?
November 18, 2011 at 6:45 AM #733168tugg49
ParticipantActually I’m an ex-San Diegan. I left the rat race and moved to Monterey.
The home is a short sale and at the peak it was refi-ed for 1.2 million. I got it for 450K. 3300 sf on an acre of land in a gated community. 10 years old. TWO furnaces!! Lots of short sales up here if you can stand the 6 month wait. But for 3.75% I can wait a long time. 132 bucks a SF. Can’t beat that!
The market up here is lively! All houses we liked were bought by cash offers in less than a week. Can’t compete in Monterey.
The working stiff has to commute from the outer regions but it’s still only 20 minutes on four lane highways. Get to watch the surf roll in most of the way.November 18, 2011 at 8:40 AM #733180Aecetia
ParticipantAwesome. Sounds like it was well worth waiting for.
November 18, 2011 at 9:01 AM #733182bearishgurl
Participant[quote=tugg49]Actually I’m an ex-San Diegan. I left the rat race and moved to Monterey.
The home is a short sale and at the peak it was refi-ed for 1.2 million. I got it for 450K. 3300 sf on an acre of land in a gated community. 10 years old. TWO furnaces!! Lots of short sales up here if you can stand the 6 month wait. But for 3.75% I can wait a long time. 132 bucks a SF. Can’t beat that!
The market up here is lively! All houses we liked were bought by cash offers in less than a week. Can’t compete in Monterey.
The working stiff has to commute from the outer regions but it’s still only 20 minutes on four lane highways. Get to watch the surf roll in most of the way.[/quote]I’m envious, tugg!
[img_assist|nid=14952|title=Harbor Seal performing on Cannery Row|desc=|link=node|align=left|width=100|height=58]
I just did another “17 mile drive” last month and know you will enjoy your new digs!
November 18, 2011 at 3:45 PM #733237Irish
ParticipantSounds like you bought well.
You mentioned the process took 6 months. Can you walk us through the short-sale process (for those of us less sophisticated Pigs) ?
Signed
Green with Envy !November 18, 2011 at 3:58 PM #733239AK
ParticipantHoly crap, what a rate!
Who’s your mortgage broker … Mrs. Claus? 🙂
November 18, 2011 at 6:12 PM #733250ParticipantHere’s what I’ve gleaned from the realtor. The house went into escrow in Feb and then fell thru. In July we found it and actually met the owner the day we made the offer. She told the realtor she wanted us to have the house. (I had a RE license before and a rule I heard was you never let the owner meet the buyer). But in a short sale the owner is the bank and the “resident” needs to “qualify” for a short sale.
In this case it was the death of the husband. Still shakes me to think of the toll this taking on the wife. Reality really isn’t fair.
She signed the paperwork and the realtor presented it to the negotiator…which changes every offer (I think). He is an experienced short sale realtor…WHICH IS A MUST! He still talks smack about the last offer he got shirked out of because of the phase of the moon and it’s effect on the negotiator. Don’t talk to the rookies if you love the house…you’ll be pissed. Cause rookies will F it up. I was up front about VA as well and the REA was a vet so he had compassion. Seriously the REA didn’t care anymore he just wanted a buyer and a seller to be happy.
I had worked another offer with a mortgage broker and she had all my qual info in standby. It was quick when my REA met my broker. It was quick with a few doc updates and a presentation to the bank and maybe a month later the bank gave us approval…..great email day that was!!!!
So we got the appraisal.(BTW in Monterey County there is only one VA appraiser and it can take up to a month for an appraisal). Off season…took a week. We did everything by the book and the VA appraiser, home inspector and all involved gave it green light. So we built a fire in the fireplace, popped some MORE wine and waited. When can we tell the landlord(tonite I called). We were supposed to close by the 15th…signed an extension to the 1st. Friday night and silence! Sleep tonite will be alcohol induced..again. UNTIL YOU SIGN THE PAPERS YOUR WORLD WILL NOT BE A COMFORTABLE PLACE!! This is not an overstatement! My realtor told me about the last deal….it didn’t go well.
THEN WITH THIS DEAL….the bank tells him he will only get 3% commission. He didn’t care. It wasn’t about the money. He wanted a widow and a happy couple to make a life bearable. I have total respect for the guy. He’s impeccable.What you should do….make an offer on a house you might want….go through the paperwork drill and don’t fax or email thing. DO IT ALL IN PERSON. Get a working relationship with the person that presents your paperwork. If you are uncomfortable find somebody else. The short sale paperwork has to be BULLETPROOF! NO DEPOSITS OR QUESTIONABLE TRANSFERS. Lots of cash(5 figures) in the bank and a six figure retirement savings helps. I’m no rich guy just an average guy doing an average job.
Be generous with your money. If the realtor calls and says he’s got a guy that’ll do the work for 500 bucks tell him to go ahead and bring him a check for the work. TRUST! My loan is for 450K. I’ve got 5K for the tip jar.
BUT until this is over the deal isn’t done. I’ll let you know when we sign the papers…are you able to cope with that stress? It’s all about the kitchen and the garage and a nice deep tub to soak in! Hope this helps and have a happy holiday season.November 19, 2011 at 8:33 AM #733256EconProf
Participant[quote=tugg49].
What you should do….make an offer on a house you might want….go through the paperwork drill and don’t fax or email thing. DO IT ALL IN PERSON. Get a working relationship with the person that presents your paperwork. If you are uncomfortable find somebody else. The short sale paperwork has to be BULLETPROOF! NO DEPOSITS OR QUESTIONABLE TRANSFERS. Lots of cash(5 figures) in the bank and a six figure retirement savings helps. I’m no rich guy just an average guy doing an average job.
Be generous with your money. If the realtor calls and says he’s got a guy that’ll do the work for 500 bucks tell him to go ahead and bring him a check for the work. TRUST! My loan is for 450K. I’ve got 5K for the tip jar.
BUT until this is over the deal isn’t done. I’ll let you know when we sign the papers…are you able to cope with that stress? It’s all about the kitchen and the garage and a nice deep tub to soak in! Hope this helps and have a happy holiday season.[/quote]
Congratulations on jumping through all those hoops. You had to have terrific, verifiable liquidity, knowledge of the complicated requirements, and the right people working for you. But this also shows how difficult it will be for the market to come back. Banks and their regulators are being so demanding they are narrowing the market to very few buyers, which also means they are getting less for their product than they could otherwise get. Good for you, however, in navigating the system.November 19, 2011 at 8:45 AM #733257sdrealtor
ParticipantEP,
Actually that was a good example of one way to “win” a short sale that is in demand but the reality is every one is different. In this case there were multiple buyers and thuis plenty of demand. None of that story impacts what happens on the sellers side. The success of a short sale all comes down to one thing. The skill experience of the listing agent with short sales. There are plenty of buyers for short sales out there.Tugg
Congrats on being one of the winners!! Being prepared and having good help on your side will do that. More than anything the REA just wanted to get it done because that is their job…to get it done. A happy buyer and seller are just an artifact of that.November 30, 2011 at 8:33 PM #733681ParticipantJust signed the docs.
Close on Monday.
Occupant has packed and house is empty.
Agent did a great job.
Bank says no extension. Deal is dead if it doesn’t work.
It worked. Moving in next week.
Got a lot of info on the the tax forgiveness.
Any piggie give accurate info about the tax forgiveness details when you short sale. What I heard told me that if I was upside down I’d bail and wait three years for credit remedy and move on.
Am I off the mark?
THANKS PIGGIES IT WORKED!!!!!!!!!!
132 bucks a s/f….argue with that!November 30, 2011 at 9:34 PM #733691Participant[quote=tugg49]Just signed the docs.
Close on Monday.
Occupant has packed and house is empty.
Agent did a great job.
Bank says no extension. Deal is dead if it doesn’t work.
It worked. Moving in next week.
Got a lot of info on the the tax forgiveness.
Any piggie give accurate info about the tax forgiveness details when you short sale. What I heard told me that if I was upside down I’d bail and wait three years for credit remedy and move on.
Am I off the mark?
THANKS PIGGIES IT WORKED!!!!!!!!!!
132 bucks a s/f….argue with that![/quote]CONGRATS, tugg!! Happy early Holidays!!
Are you asking the tax forgiveness question for yourself (if you feel you need to SS in the future?) or for your “seller?”
If it was you that you were asking about, the only place I can see where you might be a little off the mark is that you won’t be able to “guarantee” that your credit score will come all the way back to where it was before you “strategically” defaulted/sold short at exactly the three year point. Depending upon the amount sold short and the extent of default, I believe it wildly varies how long it takes the credit score of an owner who sold short to completely recover from it, assuming they have no other credit issues.
Your agent sounds very competent and professional, even though acting in the capacity of dual representation. It appears he didn’t try to slip in a friend or relative-buyer AFTER your offer was approved by the lender. And he was able to control his client-seller. This was his most important function in this long SS saga, IMHO.
I’m very happy for you, tugg!
December 1, 2011 at 1:37 PM #733788briansd1
GuestCongrats 3.75% on a VA and a successful short sale is great.
My buddy got 3.75% on a VA last year but it was on a new house.
Along the line of interest rates, I think that Greenspan was right. In the last couple decades, adjustable was better and would have saved at lot of money. The 7-fixed mortgage on on my properties just reset to adjustable at 2.75%. I’m delighted, for now. But who knows that rates will do in the future.
December 1, 2011 at 1:47 PM #733790Participant[quote=briansd1] . . .Along the line of interest rates, I think that Greenspan was right. In the last couple decades, adjustable was better and would have saved at lot of money. The 7-fixed mortgage on on my properties just reset to adjustable at 2.75%. I’m delighted, for now. But who knows that rates will do in the future.[/quote]
That’s awesome, brian! Congrats on your new (annual?) setpoint for your 30/7 mtg!
I, too, have enjoyed playing that evil OPTION ARM game over the years. The 11th Dist COFI (FHLBB in SF) has been more than fair to me over the years :=]
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