terrawombat Posted January 11, 2012 Author Share Posted January 11, 2012 Nice! Rural Development loan on that house? Still haven't received a response from the bank on my offer. If they counter or reject my offer, I'm walking away and putting an offer on a house that popped up for sale down the street. On about 1 acre, two car garage, and ready to move in. Link to comment Share on other sites More sharing options...
87Warrior Posted January 11, 2012 Share Posted January 11, 2012 Nice! Rural Development loan on that house? Still haven't received a response from the bank on my offer. If they counter or reject my offer, I'm walking away and putting an offer on a house that popped up for sale down the street. On about 1 acre, two car garage, and ready to move in. I am not sure if the house would qualify for a Rural Development loan or not. With our combined salaries, my wife and I do not qualify since she was promoted at work. We are going the conventional route. Good luck working with the bank on the short sale. I'll never understand why banks drag their feet on those deals. You'd think they would want them gone. Link to comment Share on other sites More sharing options...
terrawombat Posted January 11, 2012 Author Share Posted January 11, 2012 A lot of it has to do with the sellers and the stack of paperwork they need to supply before the bank can officially look at any offer and accept/counter/reject. People often want to point the fingers at the bank and blame them for the long waiting period when it's actually the fault of the seller's who are dragging their feet to get the paperwork submitted. In the case of the house I put an offer on, I don't have the slightest clue as to what is holding the show up. The seller's agent won't tell my agent who the bank is (and doesn't have to) and he also won't tell me if the seller's have submitted all of the necessary paperwork. The thing that really stinks about this is I've now talked to four people/couples that did the RD loan and they all had horror stories on the inspectors that the USDA uses (same as FHA inspectors) - lots of nitpicking over small, minute details and creating a laundry list of items that need to be fixed prior to approval of the loan. Link to comment Share on other sites More sharing options...
terrawombat Posted February 6, 2012 Author Share Posted February 6, 2012 STILL no update from the bank on my offer. Every so often I'll get an e-mail or text from my agent that gives me a glimmer of hope that something is happening, but still haven't received any official word. The MLS listing on that house has gone into a "Pending - Contingent (Kick Out)" status, which would lead me to believe they accepted someone's offer (even if it isn't my own), but no one is telling me one way or the other. So, I've grown somewhat tired of being left in the dark and have begun to look at other houses, all of which are much more expensive, but move-in ready and much, much nicer than the house I currently have an offer on. I haven't fallen in love with any of the new house that I've been shown, but there is a glimmer of hope on the horizon. I found an old, brick Colonial that supposedly had the entire heating/ventilation system upgraded last year to an energy-efficient one. I'm a little weary on how much (if any) insulation the house has, so we shall see. Its best feature is the nice two-bay shop in the back with a carport attached to the side. The shop is also heated/air conditioned. It's a little further than I wanted to be from work/civilization, but if it has everything I'm looking for, then I'll make concessions. It's a little bit outside of my price range at the current asking price, but only because it has both a county and city tax. I need to look into what the city tax actually covers, but I believe that garbage pickup is in there. There's a magic price I can pay for the house and still have it remain in my budget. I anticipate to offer lower than that and hopefully have the sellers counter back at my magic number. This is all assuming the showing and pre-inspection go well. Link to comment Share on other sites More sharing options...
87Warrior Posted February 6, 2012 Share Posted February 6, 2012 I hear you about being frustrated about being left in the dark. We have our closing meeting with the title company set for this Friday, but the seller has a lot of work to do. He must treat for termites and scab one damaged joist (required by the lender), replace the roof (it is uninsurable so required by lender and insurance) and replace the septic system (fail the test performed by the state). The seller inherited the house so he is still making out quite well with the sale. He has know of the issues for 3 weeks but hasnt done a dang thing. His realtor says all is OK and going to be completed..... We will see... Good luck on your hunt. Link to comment Share on other sites More sharing options...
terrawombat Posted February 6, 2012 Author Share Posted February 6, 2012 I find it ridiculous that they just leave you completely in the dark - not even a word of what is happening. Even if they told me the bank has not yet looked at my offer, at least that would be something. It's a shame because it has completely soured my outlook on Short Sale homes and since a lot of people bought homes at the height of the market and now need to sell for one reason or another, a ton of homes are going the Short Sale route. I have actually removed Short Sale homes from my searches because I simply don't want to deal with it again - not unless I was buying the home as an investment and already had a principal residence... Link to comment Share on other sites More sharing options...
Sir Sam Posted February 7, 2012 Share Posted February 7, 2012 not unless I was buying the home as an investment and already had a principal residence... Oh man, I wish I had a nice fat paycheck right now, there have been several houses in my neighborhood that would have been great investments, I live in a college town and my nieghborhood is going to more and more college rentals, really a decline from the "nice" neighborhood status, but good for me in terms of my investment. My buddy was living in his dads place, 2 car garage, multi level, giant backyard and a walk out basement. I think it sold for something like 170, a 30 year FHA would have been less than what you can rent the place for. Would have made a great investment if I had the money. Link to comment Share on other sites More sharing options...
terrawombat Posted February 10, 2012 Author Share Posted February 10, 2012 Found one! The old brick colonial I was talking about before. A lot of house for the money and it seems like a lot of the nuisances of an old house have been taken care of (electrical outlets, forced air cooling/heating system installed, attic insulated, etc.). It's a really neat house with a lot of feature - massive rooms, original hardwood floors, dual zone heat pumps (one for upstairs, one for downstairs), propane furnace (in case I want to use the old radiators for whatever reason), two fire places, and a wood burning stove. Kitchen and downstairs bathroom were redone and the porch was in the middle of a rehab, but never finished. Best part of the house... Two bay garage with enclosed overhang for additional storage. Carpeted floor, insulated walls, drop ceiling, lots of outlets and plenty of amps, A/C, two sources of heat (wood burning stove and propane heater). But best of all...a fully functional BATHROOM! I looked around the shop and joked to my agent and said, "can I buy just this garage?" Going to walk from my other offer and put one on this house as soon as my agent & lender have the paperwork ready. Unfortunately, I feel like this is the type of house that will demand asking price or higher because of the size and area it's located in (small, historic town with easy Bay access) so I need to think about my offer a little more carefully. Link to comment Share on other sites More sharing options...
jpnjim Posted February 11, 2012 Share Posted February 11, 2012 Working on getting this right now: I've been working under the stars in the driveway for 17 years, not sure what I'll do with a garage :yes: :banana: edit, couple more crappy cell phone ---> text pics: 12' tall garage to keep me happy 12' wide closet to keep her happy: :thumbsup: Link to comment Share on other sites More sharing options...
terrawombat Posted February 16, 2012 Author Share Posted February 16, 2012 I suppose I can post this up now. Signed the contract on this last night: http://www.redfin.com/MD/Queenstown/730 ... e/15286241 It's a lot of house for the $$ in a nice, historic town about 15 minutes away from work. It's an older place, but a lot of the "old house annoyances" have been fixed/upgrade/repaired. Electrical sockets are all new, oil furnace replaced with propane, and a dual zone forced air heater/AC installed. It WILL need new windows, which is a bit of a kick to the stomach since this old house has plenty of them. Guess it's time I learn how to install a window... The listing doesn't have any good interior shots of the shop, but I'll get those as soon as I can - perhaps when I walk through with the inspector this weekend or next. Link to comment Share on other sites More sharing options...
87Warrior Posted February 16, 2012 Share Posted February 16, 2012 Good luck with the contract! I have found that it really doesn't mean much besides that the seller might talk with you. My wife and I are becoming very frustrated with our realtor, the seller and the sellers realtor on the house we have a 'contract' on. We were supposed to close on the 10th since our apartment lease ends on the 29th...and the seller has had none of the repairs done required by the state (septic system) or the lender (termite treatment). We ask for an update every few days and always receive the same 'just hold on and be patient' reply from our realtor and the sellers realtor..... Not to discourage you, just be prepared for major delays and shady people. Congrats and good luck. :) Link to comment Share on other sites More sharing options...
terrawombat Posted February 16, 2012 Author Share Posted February 16, 2012 I'm hoping that there isn't much that needs to be done to the house. The current owners have only been there since October 2010 (job relocation is forcing them to move). They financed the house with an FHA loan, which means they had to have a stingy FHA inspector come in the house and nit-pick it to death. The current owners already have a new place somewhere else so they're looking to get out of the mortgage on their old one....so one would think that they'd be pretty willing to comply with any requests for repair. Link to comment Share on other sites More sharing options...
terrawombat Posted February 18, 2012 Author Share Posted February 18, 2012 Had the home inspection today. I was really pleased with the guy that did it and he seemed to do a very thorough job. I should have a full report tonight filled with photographs and explanations of the items he found. There were a lot of minor things like random electrical sockets wired incorrectly, leaky valve on one of the outdoor water faucets, and loose handrail at the top of the stairs. There were, however, also some very major problems too. He found lots of places where there was mold in the basement. He said it was very obvious that someone attempted to remove the mold, but just did a very poor job of it since it was missed behind wiring, in small cracks, and in portions of the basement where it wasn't easy to get to (like in the crawlspace portion of the basement). The second biggest issue was the presence of 2 underground oil storage tanks. The house no longer uses oil heat, but the tanks still remain in the ground and he strongly recommended getting someone to inspect them for leakage and to also do soil sampling. Third major issue is the chimney. Once the oil heat furnace was removed, the owners never closed off the flue going up the chimney. He recommended to seal it off at the bottom and on the top. He also recommended to remove the liner in the chimney, have it cleaned, and repair the damper on top (for the wood fireplaces). Fourth issue was the main electrical panel. He said it is overloaded as there is only 150 amps coming in and a separate sub-panel was added for the heat pumps and another for the detached garage. An electrician would need to come in, bring it up to code and certify it. So, I left a little discouraged. I'm extremely wary about the underground storage tanks as I DO NOT want to have those leak and then shell out thousands to the EPA for a cleanup. I REALLY hope that when the owners had the original oil heat system replaced with the propane one, that they had someone come in and properly abandon the underground tanks AND they have the paperwork to prove it. I feel as though they'll comply with my request to remove the mold as anyone who tries to buy this house is going to have an inspector see it and flag it. I'm debating on what to do with the chimney. I don't really intend on ever using the wood stoves and I relined the chimney on my old house and it really wasn't all that difficult. I just don't know if the inspector for my loan is going to pick up on it and flag it - but they'd have to get on the roof to do so, which I highly doubt they will. I suppose I'll ask that the sellers make all of the repairs and see what they say... Link to comment Share on other sites More sharing options...
jpnjim Posted February 20, 2012 Share Posted February 20, 2012 Had the home inspection today. I was really pleased with the guy that did it and he seemed to do a very thorough job. I should have a full report tonight filled with photographs and explanations of the items he found. There were a lot of minor things like random electrical sockets wired incorrectly, leaky valve on one of the outdoor water faucets, and loose handrail at the top of the stairs. There were, however, also some very major problems too. He found lots of places where there was mold in the basement. He said it was very obvious that someone attempted to remove the mold, but just did a very poor job of it since it was missed behind wiring, in small cracks, and in portions of the basement where it wasn't easy to get to (like in the crawlspace portion of the basement). The second biggest issue was the presence of 2 underground oil storage tanks. The house no longer uses oil heat, but the tanks still remain in the ground and he strongly recommended getting someone to inspect them for leakage and to also do soil sampling. Third major issue is the chimney. Once the oil heat furnace was removed, the owners never closed off the flue going up the chimney. He recommended to seal it off at the bottom and on the top. He also recommended to remove the liner in the chimney, have it cleaned, and repair the damper on top (for the wood fireplaces). Fourth issue was the main electrical panel. He said it is overloaded as there is only 150 amps coming in and a separate sub-panel was added for the heat pumps and another for the detached garage. An electrician would need to come in, bring it up to code and certify it. So, I left a little discouraged. I'm extremely wary about the underground storage tanks as I DO NOT want to have those leak and then shell out thousands to the EPA for a cleanup. I REALLY hope that when the owners had the original oil heat system replaced with the propane one, that they had someone come in and properly abandon the underground tanks AND they have the paperwork to prove it. I feel as though they'll comply with my request to remove the mold as anyone who tries to buy this house is going to have an inspector see it and flag it. I'm debating on what to do with the chimney. I don't really intend on ever using the wood stoves and I relined the chimney on my old house and it really wasn't all that difficult. I just don't know if the inspector for my loan is going to pick up on it and flag it - but they'd have to get on the roof to do so, which I highly doubt they will. I suppose I'll ask that the sellers make all of the repairs and see what they say... Wow, looks like you actually got a home inspector that realized he was working for you, and not the realtor. I didn't think those guys existed. As far as the panel being overloaded, if you really like the house have an electrician look at it. Home inspectors are great, but they can sometimes make assumptions outside of their expertise. Adding up the breakers to see they exceed the main breaker size won't tell you if the panel is overloaded, (most panels are like that) a load test will tell if it's overloaded: energizing everything that would likely be turned on at the same time. Even then, you may be able to balance your loads to improve the situation. As far as the buried tanks, that would concern me more. I would definitely get a price for removal, and work with the sellers if I really liked the house. If not, I'd keep looking, there are plenty of houses out there. Link to comment Share on other sites More sharing options...
terrawombat Posted February 20, 2012 Author Share Posted February 20, 2012 The electrical panel doesn't really concern me too much as I've done lots of electrical work in the past and my GF's father is a licensed electrician and already said he'd help me out and give me the pretty paperwork to certify the panel once we repaired it. There's a very good chance the panel is overloaded and there are some very blatant problems with it (double-tapped breakers, missing insulation on some of the older wiring). The underground storage tanks are my biggest concern at the moment. I'm trying to get any information on them from the seller's, but I highly doubt they have anything. I still have a week to get a the tank inspected and the soil sampled and it's going to run about $350 - so it's not too bad. But the mold....they gotta take care of that... Link to comment Share on other sites More sharing options...
jpnjim Posted February 21, 2012 Share Posted February 21, 2012 Your dad being an electrician should be a big help. He didn't go on the inspection with you? I brought an electrician (myself), and a plumber/oil burner tech with me on my inspection last month. Home inspector seemed ok, but missed stuff, then 'acted' outside of his expertise a little too much for me I did not tell him I am an electrician, and my buddy is a plumber. I have yet meet a home inspector who is more substance than smoke & mirrors, and everything said is taken with a grain of salt. Goodluck getting your issues straightened out. :thumbsup: Link to comment Share on other sites More sharing options...
terrawombat Posted February 23, 2012 Author Share Posted February 23, 2012 So after many phone calls and conversations with professionals that deal with underground storage tanks day in and day out (as well as conversations with a co-worker of mine who was a real estate tycoon in a former life and has bought and sold over two dozens homes - thank god for him and his bottomless pit of knowledge), I have generated a list of items to be included as an addendum to the sales contract. I've beaten them up, but I need to cover my arse and make sure I don't wind up buying a house that has a superfund site in the backyard and the EPA knocking on my door and reaching into my pockets. The list includes, but is not limited to: -Complete mold remediation in the basement by a certified professional -An inspection of the underground storage tanks by a certified professional, complete with soil samples sent to a lab to test for soil contamination. If the soil is not contaminated, the oil tank(s) must be properly abandoned and paperwork provided to me to prove as such. If the soil is contaminated - god help the sellers. -Fixing the mis-wired electrical outlets -Fix the loose banister on the stairs -Pipe the sump pump in the basement to the outside, away from the house (it's currently connected to the sewer drain) There are some others, but they are little things that they'll either do because it's cheap or they'll scoff and and refuse to do (which is fine my be since I'll do them). The two big things are the mold and the underground storage tanks. If either of those things is not taken care of, time for me to start looking for a new place to buy. I did hear some relatively good news in that the seller's agent took my inspection report seriously and is trying to schedule a certified professional to come out and do a preliminary inspection of the tanks. She knows that even if my deal falls through, the underground storage tanks MUST be dealt with or the house is going to sit on the market for a long time - or some idiot isn't going to think they're a big deal and buy the house anyway and get royally screwed. Link to comment Share on other sites More sharing options...
terrawombat Posted February 23, 2012 Author Share Posted February 23, 2012 Sellers have agreed to remedy the underground storage tanks in accordance with Maryland Department of the Environment. They also agreed to fix some other, little things. They did not agree to get rid of the mold, though. Link to comment Share on other sites More sharing options...
87Warrior Posted February 23, 2012 Share Posted February 23, 2012 Congrats on getting the ball moving and having a responsive seller. The deal wife and I have been working on since New Years fell through today. The seller simply thought the house he inherited was worth more than we did and the appraisal. Oh well, it was bound to be a 55 year old money pit with ever increasing taxes. Going to put an offer on another home outside of town. Relatively new construction and in the county. This one is more promising anyhow. Link to comment Share on other sites More sharing options...
terrawombat Posted February 24, 2012 Author Share Posted February 24, 2012 I have seen and heard of Estate sales going one of two ways: 1) The person(s) that inherited the home thinks it's worth way more than the current market rate and are extremely stubborn or 2) They don't want to deal with the property taxes and maintenance and will take just about anything to walk about with some money in their pockets and move on with their lives. Just up the street from where I'm currently staying, a home was being sold as an estate sale. Decent house, but the interior needed a lot of updating. Seller was in category number one, as previously listed, and listed the house for $335K. It sat on the market for nearly half a year before they moved on the price. Then another half year went by and no bites...so they lowered it some more, but it was still a little high. The seller began to move from a category 1 to category 2 after they realized that paying taxes on a home you don't truly live in or own SUCKS so they started getting a bit more aggressive with the price changes and it FINALLY has an offer on it. Also looks like the buyer got the seller to replace the roof, do some electrical work, and some other odds and ends as I've seen contractors there almost every single day since I saw the home inspection vehicle there (http://www.redfin.com/MD/Stevensville/8 ... e/15292104). In my case, I'm somewhat lucky because the sellers have to relocate. From what I gathered, the hubby had his job relocated and his commute is unbearable and they've already got themselves another place (although, I think it's rented). They're looking to get out and they don't want to be paying taxes on the old house and rent on the new. Plus, their agent is no dummy and she must have stressed to them that if they don't take care of the oil tanks, they'll be sitting on the house for a long, long time. Link to comment Share on other sites More sharing options...
87Warrior Posted February 24, 2012 Share Posted February 24, 2012 Since we are looking to buy in my home town, (a small town) we talk and inquire about the homes for sale. Everybody we talked with indicated the seller was type #2. The house had been on the market for a year before we offered our low-ball offer, so we were skeptic when the seller said he had another offer... We came back with an offer and he accepted. After the inspection we requested the roof ne.repaired and termites be treated. Took two weeks for the seller to reply but he did and agreed. It then took him 2 weeks to get the septic system pumped and tested (KS law), this was already past our agreed on closing date and we suspected he was becoming seller type #1. It failed and took him another 2 weeks to get one bid. It was expensive and we agreed to pay for 1/2 of it. He then.said we had to pay for the entire system and he would only give partial allowance for the termite treatment and roof. WTF? He even tried the old car salesman trick saying if we increased our offer more it would only increase our monthly payment a little bit... We have been going back and forth all week and could not agree. To top it off he drug this out so long, our locked in loan rate expired today. Link to comment Share on other sites More sharing options...
jpnjim Posted February 24, 2012 Share Posted February 24, 2012 Selling agent has scrutinized our moves, she was worried about our bank when we chose one she wasn't familiar with was worried when we chose a home inspector not on her list of 3 she gave us, worried worried worried. So you figure she'd have her ducks all in a row on her end, right? Newp. Our closing date is in 4 business days (3/1), and the selling bank still DOES NOT HAVE A FORECLOSURE DEED IN THEIR NAME! The house is still listed with the town in the previous owners name. I was told this was just an oversight, one signature away from being filed, weeks ago. Our lender can't proceed with paperwork till the deed is properly filed, and the selling agent is on vacation at the moment. :( Oh well, hope this problem is just someone being lazy/stupid, and not an improper foreclosure/bad paper issue. :wall: Link to comment Share on other sites More sharing options...
Thunderbear Posted March 1, 2012 Share Posted March 1, 2012 Lest everyone thinks all home buying processes are what you guys are experiencing, I'll be the odd man. We stumbled across a foreclosure when we weren't looking to even move, put in an offer as soon as we drove past it, that was competitive (~$4K less than asking), and it was accepted within 24 hours. Financing was 100%, VA, 0 down. Home inspector turned up a couple of busted outlets, a too short banister downstairs, and a tweaked well cap which the bank fixed. Couple of hiccups with the appraiser (f***ing jackass) but still moved in within ~120 days. On top of all that, it was a dream home for both of us... Summer Greenhouse Front view Jacuzzi Sauna Winter Front View Winter Garage Link to comment Share on other sites More sharing options...
jpnjim Posted March 2, 2012 Share Posted March 2, 2012 :thumbsup: :thumbsup: Awesome house! Link to comment Share on other sites More sharing options...
terrawombat Posted March 4, 2012 Author Share Posted March 4, 2012 I am currently drowning in paperwork from my lender. They managed to muff up a good portion of my paperwork so I have been going back and forth with my loan officer trying to get it all sorted out. He keeps pressing me to get the paperwork in so that they can start the final approval process with the underwriters, but I refuse to put my John Hancock on documents that state my interest rate is 4.0% (I locked in at 3.75% for 45 days) and other documents that have my current and former addresses all wrong. I also drove by the house today on my way to do some shopping and noticed a large pile of dirt, rock and shale sitting in a pile next to where the underground oil tank is. I also saw what looked to be the current owner standing next to the mound of dirt smoking a cigarette and deep in thought. He had the kind of look that says, "how the hell am I going to afford the cleanup of this leaky oil tank?" Although, maybe him smoking and flicking a cigarette butt in the yard nearby is a good sign there isn't oil leaking in the ground. Or, he's an idiot that wants to put this house up into flames :rotfl2: Link to comment Share on other sites More sharing options...
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