Posted: 7/21/2007 8:12:29 PM EDT
|
I am going to look at a foreclosed double wide tomorrow, I Know the history of the house. It is a a double wide on about 3/4 acres and not in a desirable place, by alot of people standards.I have lived here over 12 years next door to it, me and the wife love the area. We know pretty much what needs to be fixed. inside needs painting and parts of the floor needs replaced.and a few other things property needs to be cleaned up in the woods. grading needs be done.Brick foundation needs repaired. All of the work will be done by me and friends. the Realtor thinks part of the building 24 x 20 sits across the property line.she was looking at the aerial picture that the tax office provide. The survey markers are still there which are a good 12 feet away from the building. Which i am going to let her think she may be right. Talk to the other property owner and they agree with me on the property lines. Foreclosure started at $80 k in Jan and now is down to $39k. I am going to offer $20 k cash. Would the bank be willing to take the lost on a property that i don't think they will be able to sell. Because of the location? do they write the lost off on there taxes? |
|
Check the law. Here in Michigan if the double wide is not on a perm foundation, then it holds zero value and is not "real property". So, only the real estate (land) has value. No Realtor should 'think', the should either know and prove it to you or don't know and find out. But at 3% of 20,000.00 then her nut back to the company...well, motivation may not be so high. Bank are always willing to take a loss, question is how much. If they financed the unit as it sits, they 'should' move it. But good luck with that. Everything will be prorated from day of closing. The banks will pay everything up to the day of closing, you pay everything after. Good luck. Where is it at in NC? |
|
Yep, don't pay anymore than what the land is worth, and if the trailer isn't in pretty good shape deduct what it would have to have it hauled off. I live in a double wide that I bought from a bank after a foreclosure. It needed a fair anount of work (and still could use some), for dirt cheap. I researched what land only sales were going for in this area and found that it was about 13K an acre for similar properties. I found the history of the banks attempts to sell the place. I realized I was in the perfect situation for this deal. I had cash, the bank was in California, and had no operations in this part of the country. They were listing the property with a local Real Estate Agent who specialized in high end properties in the next (more affluent) county over. I called the agent and got permission to check the place out. I didn't know much about major home repairs at the time, so I had my dad go over with me, and he figured up about what he thought it would take to get the place ready to move into, and what he thought it would cost to get it "perfect", he was withing a grand on his estimate for move in. We decided that as long as we didn't find any major surprises the needed renovation costs compared to what we could buy it for made it something I wanted to look into. Originally the bank wasa asking 40K for the place, they were insane. A year later they dropped the price to 25K, reasonable but not cheap by any means. By the time I looked into it, they were asking 18K and according to the Real Estate Agent nobody had even called interested in the place for a year or so. She recomended I make them a ludicrous low ball offer, I asked her how 10K sounded, she suggested 5K, so that is what I did. They didn't take it but countered with 13K, I went back with $7500, they came to 10K. At this point I was already down to what I considered a rediculously low price, and was happy to take it, so she said OK, whe would let them know. The next day she calls me back and tells me that she "accidently sent my $7500 offer to them again" and they accepted. I told her to please get the papers drawn up, and lets get it done. Two days later I went and closed with a cashiers check for $8100 and change (that was the total including taxes and closing). While I don't expect the trailer to ever go up in value, and I realize that every cent I have spent is money that will not return, I don't regret buying this place. That was over four years ago. Since then I have been through some rough times (I had been laid off from a very good job just before I bought, and I wanted to buy something I could pay for cash (I could have spent a lot more, but it was nice knowing that I would still have a large nest egg in case things got real bad, which they did). During those rough times, one thing we haven't had to worry about where we would live, where rent or mortgage payments were going to come from. Before I bought this place I had been renting a modest home in Fayeteville NC for about $800 a month, which isn't that expensive really. In that time (four and a half years) we would have spent over 43K in rent. The house was about 8K and took we spent another $7500 or so on repairs and renovations. I discovered that doing things yourself can save you a lot of money, I learned that some people are not capable of doing good drywall finishing (me), and I learned pride in ownership. My home may only be a small step up from a shack in the woods, but it is mine, it is clean and tidy, the roof doesn't leak, and the walls keep out the wind and rain. I foung out that at the back of most Sears stores they have a room full of very nice appliances that for different reasons they are willing to sell very cheaply, I used this knowledge to put together a very nice kitchen for what would have been the price of a very basic spartan set of appliances if I hadn't been patient and know about this little room. I also learned that simple jobs doesn't mean easy (for instance roofing is simple, but lugging shingles is hard work). The opposite of my story is going on in front of me. The lot infront of me went into foreclosure at the same time as mine, and a guy bought it from the bank for a lot more than mine cost. The lot was half the size, and the trailer was in much worse shape (and has a tin roof). The guy who bought it from the bank had the intention of buying it cheap fixing it up for a few bucks in a few weekendsm and selling it for a huge profit. He got as far as gutting the trailer when reality set in, he didn't have the skills or time to do the work so it sat gutted and neglected for three years. Then he sold it at a large loss for 16K to a loser (I talked with him about it and he, the man who bought it from the bank, told me during our first conversation he would be glad to get 13K out of it). He did a better job of making repairs, he got all of the sheetrock up, and the entire subfloor replaced and even put down some of that cheap stick on tiles in a couple of the rooms before he got too stoned to do anything else. Loser didn't actually buy the place, he had his exwife buy it for him, with a mortgage. They got into it, he got booted, she had a restraining order on him, he isn't allowed anywhere near here (thank god for small miracles). The exwife had some friends and family help her make some more repairs, and got the drywall mostly done, got some carpet laid down, and a working AC installed. They tried to sell the place, and appearantly can't get anywhere near what they owe (whe took one of those interest only loans). Now whe doesn't need the place, she can't sell it, because she owes more than it is worth, it seems the loser figured out how to get a couple of "equity" loans on the place in her name, so they owe nearly 30K on a place that might be worth 12-15K (and that is being generous). So she had her sister in law move in rent free. The good news is that she went to her credit union and she was able to get the place refinanced at a rate that she can afford, and it is a loan where she isn't being raped, so she won't have to lose the place, but now here formerly paid off home now has a mortgage, to cover this dump. |
|
Well the realty woman came by today. She about gagged when she walked in, hot, closed up dog pee smell everywhere. Pointed out a lot of the problems. Told her i would give her 20K cash. She seemed a little disappointed, she said she would submitted it to Fannie Mae. Said she don't think they would accept it. Told her that is fine and i don't think she will get much more out of it do to the location and condition. If she about gagged when she walk in she should know that she isn't going to get much more. The whole house needs to gutted. |