Short Sales

[Skylar]

The owner is still living in the house and taking care of it. He put a lot hard work and money into the house to make it what it is. I believe it was totally gutted and redone in 2003 (he bought it in 2005) and then he added another $75k or so (I likey the brand new 2 1/2 car detach garage) and updated some other stuff.

I have no house to sell and am in a lease I think I'll have no problem getting out of if given a month or possibly two.

The only thing with this deal I am not sure of is that I'm working directly with the listing agent and don't have my own. Since I'm really not negotiating with the owner I don't see this being a problem. I honestly wasn't even looking to buy anything but this house caught my attention. It does suck that there is NOTHING around anywhere to compare it too. I did find some bigger/nicer houses in a nearby neighborhood that sold for really cheap for what they are and think this might help my situation.

I'm going for another peak tomorrow and will be making a "reasonable" offer instead of a low offer. If I don't get it for this offer it isn't meant to be. My wife isn't working and is going to school full time so this isn't the "right" time for me to buy anyway... but I'll make it work for this house.

Thanks everyone for all of your thoughts. It definitely helped me realize a lowball offer isn't best. I'm even thinking of putting an offer in and saying that it is null and void if I don't have a response in 15 days. I'd hate to forget about this house to have them come back 2 months later telling me OK when I already moved on.

Please, please, tell me she is going to school at Michigan Tech?

 

[anonomoose]

Rest assured that the acceptance papers, about 10 or 12 of them from the bank, will provide for the bank to back out of the deal for just about any reason they want including a simple change of mind.

While I am not familiar with the Lincoln states laws, it probably means that you can pull out of the deal anytime upon notice, prior to acceptance. But it would be a good idea to have some simple language in there that says "upon written notice, the buyer (purchaser) can cancel his purchase agreement anytime until the offer is accepted and receive a full refund of deposit"....

Then if you do pull out, you have a legal right and won't lose your money.

As far as using the lister for the dealings....while not recommended, just leave a provision to have the contract reviewed by your attorney within a set period of time of acceptance, with right to back out if attorney recommends it. This will give you an out if you over looked a huge problem.

One thing about buying these bank owned or short sale homes, it is imperative that you really do your do diligences....this is no time to cut investigations short...because once the deal is done, the bank involved won't stand back of a thing, and you already know where the Seller stands financially....so you aren't going to get blood from a turnip. Spend the bucks, get specialists who know their stuff and go over the home with a fine tooth comb. Point is to know what you are buying...it is critically important in these situations.

 

[cuzzinolaf]

LMAO, Skylar.

Thanks for all the info Ananomoose. I'll talk to my attorney about the language for the contract. I do know that there is an attorney review period where they can make changes to the contract and I can make sure I'm protected.

I also plan to have a home inspection, well and septic inspection, termite inspection and am still unsure about the radon.

 

[Rupp Collector]

Hmmm. Inspections are a waste of money for the most part. IMO. Is the inspector going to go in and inspect the septic system? I think not. Most of what they do you can do yourself with a little knowledge of the workings in a home. Water comes out the faucet when you turn it on, check. Furnace turns on and blows warm air when thermostat is turned up, check. Lights come on when you flip a switch, check. Roof doesn't leak during rain, check. Basement appears to be dry and mold/mildew free, check. Normally they will provide a guarantee, if something comes up they missed in a specified time they will be responsible, up to the cost of the inspection. Big deal!

 

[anonomoose]

Hmmm. Inspections are a waste of money for the most part. IMO. Is the inspector going to go in and inspect the septic system? I think not. Most of what they do you can do yourself with a little knowledge of the workings in a home. Water comes out the faucet when you turn it on, check. Furnace turns on and blows warm air when thermostat is turned up, check. Lights come on when you flip a switch, check. Roof doesn't leak during rain, check. Basement appears to be dry and mold/mildew free, check. Normally they will provide a guarantee, if something comes up they missed in a specified time they will be responsible, up to the cost of the inspection. Big deal!

I'm assuming the above is tongue and cheek.??

Ask a home owner who moves in and finds that the furnace leaks CO..but still blows heat.
Ask a home owner who didn't discover a poorly vented attic alive with mold because it was "dark up there".

Ask a home owner who finds out that the valleys are just showing signs of leaks, or a home that once had fire damage that was covered up.

Ask a home owner about a stopped up septic which occurred coincidently 3 months after purchase.

Yes, with my knowledge, I wouldn't spend the money either, but most folks just use a home and forget about where issues can crop up or where to look for latinent problems, or what might have been discovered if someone with far more knowledge of the area and problems unique to that era home might have found if employed.

If the home has a septic, get it pumped and inspected right away....maybe you just wasted a couple hundred, but maybe you just saved 10 times that with a field that is saturated, or a tank that is crumbling. A good septic cleaning company can tell you very quickly if a field is working and perhaps recommend a secondary inspection involving digging up the field to be sure.

While it is true that many inspectors are just construction guys filling in the blanks or making some money on the side, a good inspector who knows good general inspection processes can turn up stuff that even the home owner didn't know existed.

If you have to put a roof on, new furnace, hot water heater, well, septic correct mold issues, etc....it can make a good deal, seem like the home from He!!.

So yah have to ask yourself partner....do yah feel lucky? Well do yah?????

 

[whitedust]

Had septic checked on house in La Grange,WI & seller had to replace to the tune of $10,000 or Walworth county would not allow the sale since house was on a chain of lakes. Had the offer not been written with county septic check it would have been a legal nightmare as the seller was trying to coverup condemmed septic. He knew found out later that he tried to appeal to La Grange town board & they explained new county law & he had county letter in hand.lol Yes have septic checked you never know what is going on within a county.