Buying a forclosed home

[koda6966]

I have my plans made already. I'm going to buy (or rent-to-own) some dumpy little trailer. Then buy a plot of land and put in septic, water, power, phone lines, etc while paying lot rent. Then when it comes time to move either A) move the trailer to the land or B) purchase a new trailer, and sell or rent the dumpy one. While living on the plot of land I plan on clearing it and making it level in one area, this will be where I will build my house. It's going to be built to spec, and will take a few years. The way I have this planned out I should have my dream home by the time I turn 35-40. That doesn't seem to unrealistic of a goal to me.

 

[Nhaz]

The panel can be completely replaced with a newer updated one for a couple hundred. getting it installed correctly will cost several hundred more.

I don;t recommend a cheap electrician. get one with a good reputation and pay the extra don't screw with the major cause of fires in houses. While you have the guy have Him check out the rest of the wiring and fix where he can.

Wiring is expensive theres no getting away from it.

How old is the septic system? Most are good for 5 years between cleanings and 20 or more for the bed pipping.

BTW they are right on checking the septic its rather hard to do when its covered in snow and the top foot of earth is frozen solid.

But all in all if its a good price. I would take it problems and all. I bought mine after a car ran through the living room and got it for a song. property value only, building was written off.

 

[JFA_Spyderman]

Yo,
Jim as I understand it, you are already currently under contract. So that should give you until the June deadline, not the April one.

I +1 on the electrical issues, they sound pretty minor. I would have the septic guy give you a worst case scenario (eg. $2000), then double it ($4000), then ask the seller to pay that much (the $4000) towards closing costs and freeing up the cash on your end if you have to fix it yourself.

 

[chico4554]

good luck with everything, I know its a PITA. Two of my close friends have gone through the home buying process.

 

[r1hatman]

Be careful, pray about it. Be smart don't let em change stuff at the signing! Get a good electrician. I myself was to poor when we did ours, so I got the time life house repair series and I will have to say they really helped. After a few sparks and some tickles, I figured it out. I always taught myself to do things I couldn't afford to pay someone else to do. Get a friend electrician and do some bartering. Remember saving money does not mean half assing things, especially when it comes to the most important investment of your life. Do it right the first time! PS DIY, and HGTV help alot too! Good luck and God Bless!

 

[koda6966]

Also, getting a good electrician doesn't mean getting a licensed one. Any idiot with a code book and good reading comprehension can pass the licensing exam. I have met electricians that can't get past it but they still are some of the best electricians you will ever find with 50+ years in the business.

You can get some cheap labor by asking around at local colleges that have electrical majors, a lot of those "kids" already know their stuff and if you live in an area where inspections are mandatory you don't have to worry much about them doing things 100% right because the AHJ will catch that most of the time. It's what they're paid to do. Make sure you get a recommendation from their instructor though, I go to class with some guys that I wouldn't trust to wire in a door bell.

 

[r1hatman]

I agree with Koda, I got one for you, I had an electrician come to my house on New Years Day cause our hot water heater was out, not only did our hot water heater not work when he left, but he wired the 110 hot water breaker to the 220 stove breaker and burned out the new heater element, I had to go behind him and fix it, then he wouldn't return my calls.....

 

[Jim Oaks]

Well, my agent called me and said the house appraised low.

The house started at $110,000. Then the seller (bank) went in and installed (2) new windows, carpet, repainted, installed a new furnace, and repriced the house at $119,000. We offered $120,000 and asked them to pay our closing costs which they agreed to.

Well, the house just appraised for $110,000 which is crazy. It's definitely worth more than that, but they have to go off the last 6-months comparable sales. The appraiser said the electrical would need fixed, the septic would have to pass inspection and the roof would need a cert before it would pass for an FHA loan.

My agent thinks this is a good thing and we could end up with an even better deal than before. She said all the sales they're doing are government loans such as FHA and USDA. She said nobody has money for a conventional loan except for the cheaper properties. She said the seller will most likely end up selling at the $110,000 and making the repairs to get the house sold. Their only other option is sitting on the house to see if the market improves.

My only concern now is that we were offering more $$ so we could get our closing costs included in the loan (USDA Loan). We pay more and ask the seller to pay our closing costs out of it. We can only finance what the house appraises for, so our closing costs ($4,400) will have to come out of the $110,000 re-adjusted offer we just submitted along with the appraisal. I don't know if they'll go for it.

 

[IlovemybroncII]

they will do whatever it takes banks dont like holding houses they want it gone they are just going to charge back the cost to the person who lost it and house are not selling like hotcakes at Ihop right now lol my neighbor bought a fore it had 7 acreas and a 28x80 double wide like new for 60 k and that was when market was stll half way decent

 

[Nhaz]

Want to hear crazy?

Value of my house when i bought it was 50k land value only. After me myself and I worked on the house for the entire summer during weekends. which included.

rewiring the entire lower floor, Replaced the entire living room The whole thing from studs to drywall. Replaced the roof over the living room. Replaced the entire kitchen from studs to drywall. The stairs(they were what actually stopped the car from driving through the entire house) . And replaced the utility room studs to drywall ( it needed it even if the car didn't wreck this room)

The only thing I didn't replace was the bathroom I simply ran out of money and time for that part. I had to move in.

had the electrical inspector pass the wiring(I did the wiring).

Less then a year after I did all this work the house has been revalued at 136k. Not bad for me spending maybe 6k and several weeks of my time. I could flip it even without the bathroom being done properly or having not even touched the second story(which needs it).

My windy point is. Buy it if you think you can fix its problems.

 

[Jspafford]

Jim, how long's it been on the market. I bet they fix the issues, and take the deal. Especially if your the only offer in a long time (if ever).

Have you been pre-approved for the mortgage? If not, get on it quick.

I wish you all the best, it sucks....I just went through it 2 years ago. Very stressful.

But hopefully it all works out in the end for you two.

 

[trail B2]

Banks hate being in the property management business they like the money business.Holding on to houses is real expensive because they have to pay all kinds of people taxes blah blah you get the idea.They want out of the house really bad its not your fault the house is overpriced I bet they make this work.

 

[Jim Oaks]

I already have the loan paperwork done and an approved mortgage. It's just a matter of getting the house. Its been on the market now about 104 days.

Electrical is the only thing I haven't done on my own. I bought an electrical how to book, but I'd rather have an electrician replace the panel. I got it because I plan on running some wire and adding some outlets and lights to some spots in the garage and basement.

 

[naford]

You should be able to go to hte county and find out when the last time the septic tank was cleaned. I would also think they could give you an idea of how old the system is. Your probably going to have to get the electrical reinspected so it would be better to have electrician do the work.