Buying a house. It sucks.

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So Im in the long and arduous process of buying a house up in Londonderry. Its a short sale, so from the beginning we knew it wasnt going to be the smoothest process in the world. That being said, its gone smoother than expected. The house was winterized so I had to get it unwinterized to get it inspected. This involved getting the heat hooked back up, because for whatever reason, the connections to the hot water baseboards had been severed. Whatever, a couple hundred bucks to the plumber. Then during inspection, we found that the well was contaminated and that there were trace amounts of radon in the air. Whatever, easy fix, just some money. Because of these two things, we got a good amount of money off of the already negotiated purchase price. So we're moving right along, just waiting for my bank to give me the go and their bank to give us the go. Well, my bank just told me that I have to replace all the toilets and vanities in the house (there are a few missing...short sale) and change the drop ceiling in the garage to sheetrock or drywall. This all while the sellers bank has the proposal in committee and should make a decision on it any day. Its just one more thing I guess. I knew owning a home was some work and expensive, but I thought it would be AFTER we owned it, not before.

Any advice, encouraging words?
 

whacko

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If it is your first home it will be worth it in the long run......at the end of the year instead of 12 rent receipts you will gain equity and a bigger tax deduction. Hows that for encouragement! I bought my house in 1999......4 years left on that mortgage and its all mine! THink long term! :)
 
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eh that's not too crazy buddy, I bought my house back in 97 and I am still working on it. Then again my wife and I f'd off for a while and didn't do alot of needed stuff cuz we were constantly on vacation. It's all good it'll really be worth it in the long run I am enjoying doing some of the work myself.
Also when I bought the house the furnace crashed christmas week. The bedroom was unfinished raw open studs, upstairs floor was literally broken there was no insulation in parts of the house and so on and so forth oyh yeah lets not forget the rotted sill under the front door that I could put my fist all the way through.
 
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Encouraging words? Well, you're buying a house that you will likely be getting a good deal for. After you put in some extra cash and a little sweat, you'll be sitting on a very solid home and possibly have some equity in it.
Or you could rent, have little to no pride in where you live and send money down the toilet every month.
You're in a good place.
 
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It's a right of passage, another notch in the belt. I went through a hell of a closing... My advise, stay the course and make sure you spend the $500~ and have a Closing Attorney review your documentation, it's a worthwhile investment.
 

Realtor MA

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Short sales test the mettle of any buyer. I can't tell you how many people bail even after they say they understand the short sale will be a long and drawn out process.
There is a reason you pay less when you are involved in a short sale. It's the length and uncertainty of the process.
If you're paying below market price for the house then stick it out.
Let me leave you with this warning. Even when you think you are days away from closing you may not be. Also in the warning category, banks do crazy things. Don't be surprised if they come back to you for more money or something like that. This usually happens when the bank drags their feet. The number the bank is looking at is a net number. They factor in taxes etc. Sometimes they take too long and the back taxes etc go up. Particularly when it's a condo as the condo fees add up on a monthly basis.
Also of note; There are investors who buy short sales, clean them up and flip them for good money. The main reason they are able to make money is because they then can offer clear title and a more definite timeline to buyers.
 
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Doing work on someone else's house doesn't sound wise. Do you recover anything if the bank balks on the short sale?
 
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If it is your first home it will be worth it in the long run......at the end of the year instead of 12 rent receipts you will gain equity and a bigger tax deduction. Hows that for encouragement! I bought my house in 1999......4 years left on that mortgage and its all mine! THink long term! :)
5 years for me bro, I hope you have a burning ceremony (and party), I know I am
 
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I own a mortgage company and have done a bunch of short sales. Typically you will get a fantastic deal, well below market value. Yes you will have to put money into these houses at first but having immediate equity in the house is well worth. I am assuming you haven't gotten an appraisal yet. Usually the shortsale bank gets their appraisal done then the buyer does. Study that appraisal carefully and see what he/she is using for comparable sales. In some isolated cases the buyers are not getting the deal they think they were. I would also ask your realtor for a market analysis, if they havent provided you one.

The downside: They take forever. The seller's bank may make a descision on it, or verbally approve the deal at a certain purchase price but you will not have it in writing most likely for a long while. You need this written approval to provide to your lender. That seems to be where most of the lag time is. I wouldn't do ANY work (toilets etc.) until you have the sellers bank's written approval in hand. I do find it strange however that your lender is asking you to replace the drop ceiling and vanities. Those are cosmetics and pose no safety concerns. As long as all toilets and faucets are running at the time of your appraisal you should be GTG. Again, do not pay for an appraisal until you have written approval from sellers bank.

I have one now that is going on 6 months with Bank of America. Do you know who the seller's bank is?


Hope this helps...
 
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Buying ours was a nightmare full of inspections and paperwork as well as a lot of stress and sweat and blood.
My advice is to put your head down and barrel through all the BS.
It can get hard on a short sale because the bank has to approve it, so you don't want to be throwing out all this cash to fix things just for them to say no and then resell it higher because you fixed all this stuff.
When you come out on the other side, sit on the steps of your new home and have a beer or 12. That's what I did.
 
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You all have brought up concerns that I already have. I really don't want to do any work without any guarantee from the sellers bank that we will get the house.
FYI, my banks appraisal was already done, thats why they wont lend to me until those two things are fixed. What I dont understand is why code issues were brought up during an appraisal. Isnt an appraisers job just to determine whether or not the sale price is appropriate?
 
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i bought a house a little over three years ago. in MA. the place sucks and i hate it. i'm underwater and can't sell it and get something i hate less.

i would like to offer to take on your problems on the condition that we switch problems.

but yeah, don't do work on someone else's house. that's stupid. tell them they are stupid for suggesting it. find a different house.
 

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I don't understand how they can dictate to you that you have replace certain plumbing fixtures? If they are missing, sure, that makes sense. You wouldn't get your certificate of occupancy from the health department. Why do they want you to change the drop ceiling to drywall? That makes no sense to me.
 
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I don't understand how they can dictate to you that you have replace certain plumbing fixtures? If they are missing, sure, that makes sense. You wouldn't get your certificate of occupancy from the health department. Why do they want you to change the drop ceiling to drywall? That makes no sense to me.
If I said replace, Im sorry. They are missing. I believe because of fire code, there needs to be drywall or sheetrock in the garage because it is below the living quarters.
 
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If it is your first home it will be worth it in the long run......at the end of the year instead of 12 rent receipts you will gain equity and a bigger tax deduction. Hows that for encouragement! I bought my house in 1999......4 years left on that mortgage and its all mine! THink long term! :)
^THIS^..I bought my house back in 2006 still got some time before it is payed off but well worth it the long run! good luck and try not to get discouraged there will be always something to do,fix ,or spend money on..
 

blindfire

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If I said replace, Im sorry. They are missing. I believe because of fire code, there needs to be drywall or sheetrock in the garage because it is below the living quarters.
Heh...I guess MA code is different. My basement was unfinished (where my boiler is). I finished 3/4 of it and had drop ceilings installed and the town inspector didn't blink an eye.
 
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You all have brought up concerns that I already have. I really don't want to do any work without any guarantee from the sellers bank that we will get the house.
FYI, my banks appraisal was already done, thats why they wont lend to me until those two things are fixed. What I dont understand is why code issues were brought up during an appraisal. Isnt an appraisers job just to determine whether or not the sale price is appropriate?
They shouldn't be bringing up "code issues", their job is to determine fair market value calculated by similar, recent sales in your area. Getting an appraiser in there prior to sellers bank's approval was a bad idea, whether it was your descision or your lenders. Unfortunately, sometimes you do get "those" appraisers that act like a home inspector whereas they have no licensing or expertise to do so.

Did you provide your lender with your own home inspection (assuming that you had one done)? This is totally seperate from an appraisal and you are not required to give your lender this. It would open up a can of worms and you would be running around fixing a substantial amount of things.

The one I have going on 6 months now, I will not lock their interest rate or let them get an appraisal until that sellers bank's approval is signed, sealed and delivered. It can, and probably will be, a long drawn out process and you do not want to run into rate lock issues or paying for things when it could ultimately end up as a dead deal. I suggest you stop doing the work until you recieve both this approval and your lender's approval spelling out exactly what they need to clear the loan for closing.
 
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I asked my contact at the bank if it was a common practice of appraisers to point out issues with the property that may not be to code. (I also expressed the opinion that the appraiser overstepped their mandate). She told me that "It is absolutely the appraiser's role to provide a full review of the property value as well as whether there are any issues". Has anyone ever heard of an appraiser doing this?

I also told her that I was eagerly waiting the full appraisal.
 

stinger35

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We had a couple houses fall through when we were looking. If I heard one more person tell me, "things happen for a reason, if it was meant to be it will work", I was gonna grab them by the throat.

In the long run, they were right and we are way better off in the house we bought.

Hang in there, it will be worth it in the long run.

Just remember that if it looks and smells like sh*t, it probably is. These people do this every day, and you could get poked if you want it to badly.
 
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I asked my contact at the bank if it was a common practice of appraisers to point out issues with the property that may not be to code. (I also expressed the opinion that the appraiser overstepped their mandate). She told me that "It is absolutely the appraiser's role to provide a full review of the property value as well as whether there are any issues". Has anyone ever heard of an appraiser doing this?

I also told her that I was eagerly waiting the full appraisal.
Unless you have your heart set on this house, I would ditch the realtor, do a private sale, and get a lawyer.
Have you tried Isoldmyhouse.com ?

http://www.isoldmyhouse.com/
 
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Horrible

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Best of luck to you. Took a friend of mine over 9 months to close on a short sale. He, his wife and baby ended up having to live with his parents for 7 of those 9 months!
 
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"up in Londonderry" implies you are currently living down here in MA. Isn't the prospect of getting out of Dodge reason enough to see it through?
 
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Go rent a luxury condo with all the amenities, and **** equity and tax breaks....that's what I keep telling myself I'm going to do every time it snows, or a plumbing issue comes up, or electrical problem, and when the roof needed fixing, when the driveway needed re-paving.....ugh.
 

Realtor MA

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I asked my contact at the bank if it was a common practice of appraisers to point out issues with the property that may not be to code. (I also expressed the opinion that the appraiser overstepped their mandate). She told me that "It is absolutely the appraiser's role to provide a full review of the property value as well as whether there are any issues". Has anyone ever heard of an appraiser doing this?

I also told her that I was eagerly waiting the full appraisal.
Yes, think of it in simple terms. The appraiser acts as the bank's eyes and ears. The appraiser sends back a report of the value of the house but they also have to indicate if there are any issues with the house. ie no roof. Granted your issues aren't as glaring but in order to show the value and in order for that value to make sense when compared to similar homes the appraiser has to mention missing toilets. or missing walls or whatever.

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Unless you have your heart set on this house, I would ditch the realtor, do a private sale, and get a lawyer.
Have you tried Isoldmyhouse.com ?
So you want him to go knocking on doors until someone agrees to sell him a house?
Where the hell did you come up with this one?
 
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