Post BK Home Buying Experience

[iupui1299]

I hope I am not hijacking this thread but I am going through the Post-BK Mortgage Process as well. My 2 year date is Oct. 16th. We are trying to buy a house and close on that date. We are going to be building due to getting a very good offer. We tried to do this about 6 months out of BK and the rates were crazy. We met with the Loan Officer today and were told we should be looking at getting Market rate on our loan which as of today is 6 percent. We are going FHA. We won't lock our rate until somewhere around 60 days to closing. Our application is going to the underwriter and we should know something by the end of next week. Wish us luck!

[CindyLou]

I can't do it!!!!!!!!!!!!

We had another contract on a house and when it came right down to it it was 8000 over our budget. So we didn't accept the counter.

We have decided to wait. After all that effort we arent going to buy a house here. Ugghhhh...its just too much to handle. A 2300 mortgage, another 291/mo for the metro ticket, increased utilities. Plus I had to take into account the 60+ mile train commute that would require me to leave home at 6am and not return until 7pm just to work an 8 hour day.

We are disappointed. BUT I have been trying to get my husband to consider moving out of Los Angeles. So he has been talking positively about exploring Las Vegas. I am a nurse, so I can get a job almost anywhere and we are strongly considering serioiuly looking into making a move.

Any comments, suggestions?

[CindyLou]

close....Palmdale

I've heard Victorville is VERY nice....

[babyphat24]

Hey Cindy,
Just out of curiousity are buying a home in the high desert( Victorville, Adelanto?) I am planning on buying a home up there that is where my mother lives and every other house is for sale, and they are all brand new..... It's a nice area though.. Your story gives me hope

[crazydebt]

sorry to hear that, hope you get it resolved quickly

[CindyLou]

by the way, what is your month mortgage after all is say and done ?

Principle and Interest - 1744 (291,000 financed on principle)
Mortgage Insurance - 121 (.5%/12 months)
Homeowner Insurance - 66
Property Taxes 312 (1.25%/12months)
------------------------------------------------
Total 2243


AND HERE IS MY UPDATE: Home Inspection did not go so well. Major Problems with Hot Water Heater looks like its been leaking since the bank took over the property 6 months ago. Major dry wall rot underneath and needs to be replaced...lot of work.

Also, there was a fire underneath the patio in the back and instead of fixing it they just patched it with a peice of plywood.

There were other small things, but just these two repairs alone are thousands. Plus near where the porch had caught on fire the electrical outlets didn't work...hmmmm...

So, we are back to square one.....well maybe not square one, but at least square 3...lol. AND Our real estate agent was a no show for the inspection after making a big azz deal of making sure the appointment was convenient to him!

Time for a new agent!

Now, I wonder how long it takes to get our $2000 escrow deposit back once we cancel the deal tomorrow????

[crazydebt]

by the way, what is your month mortgage after all is say and done ?

[crazydebt]

thats great news cindylynnsmith. I will definitely be hitting you guys up when its my time to make the commitment

[CindyLou]

as if 2008 the upfront MI fee is determined by credit score, amt down, and the origin of the downpayment. If you look at the beginning of this thread, Nick posted the new guidlines.

In addition the monthly MI is .5 percent which us much less than PMI....so it all evens out in the end.

[rrockinggramma]

How does that 2 percent fee work under the "new FHA?" If I borrow 150,000 with 3 percent down, so 145,500 does that mean that I would at close pay another 2 percent fee for the MI?

[CindyLou]

Great news! Counter offer accepted except for the Home Warranty and Termite Inspection report, but our Real Estate Agent is going to buy that for us out of his bonus.....weird things to exclude...I the bank does not want to imply any type of warranties....

Now we have 5 calendar days for inspections!! It will be a busy week. They want a less than 30 day escrow so it look like we should close on January 29th if the inspections all go as planned....

I'll keep updating as we go along...

The loan officer was suppose to get my case number today to prevent me from paying 2% under the new FHA regs intead of 1.5% for the prepaid MI fee. I didn't hear from her ...so hopefully she was able to get that going today.

[CindyLou]

Update: The bank counter offered and asked for the purchase price to be increased by 3% to cover the Nehemiah downpayment grant.

That is exactly what I expected and we are 100% fine with that!! Basically this just allows us to finance 100% of our loan in a round about way.

So here is the deal we offered back...(although not yet signed by all parties)
Purchase Price 290,000
Seller Pays 6% ($17,400)to closing costs
Seller Contributes 3% ($8700) to Nehemiah Program for down payment grant.
Seller offers one year home warranty with rider for A/C and Spa.

Ok, we shall see!!! Thanks for the warm wishes, LRPRN! I'll be back as soon as we hear.

[lrprn]

Good luck, Cindy - our fingers are crossed for you hoping for a yes or at the very least a reasonable counter-offer!! Keep us posted, ok?

[CindyLou]

Update: Whew this house hunting thing is hard! Especially since we are shopping 60 miles from our current residence!

Made another offer today. We had backed out on the last one because their were questions regarding the working condition of the pool and the owner did not want to "un" winterize it for inpsection. Big red flag!

Anyway made another offer today and here is what we did.
3 BR 2.5 BA 2157 S. F. listing price: $282,000 (sold for $380,000 in '06 and is now bank owned) Great condition, just needs a little paint upstairs...maybe new appliances in kitchen for cosmetic reasons only.

We offered listing price and ask for seller to pay all closing costs, which comes out to almost exactly 6%...$16,900 In CA you can ask a seller to pay everything on FHA, including the prepaids (taxes, insurance, etc).

We have also asked the seller to make a 3%...$8460 contribution to the Nehemiah program so that we can recieve the downpayment grant.

Our realestate agent is anticipating a probable counter offer increasing the asking price by 3% to cover the grant. We'll see. The comps in the area are all in $350-380,000 range. Even though this is a bank owned property, this lender is willing to work with FHA buyers.

I'll keep my fingers crossed for no counter offer ...we want a YES!

Hopefully we'll know something by friday! I want to get my FHA case number before Jan 1 to avoid the additional up front fee of .5% due to the grant gift changes in the new regs....

[sandhall]

Bker i put my sweet baby missy down yesterday. I so agree it was one of the hardest things in life. She was 13 yrs old and i knew she was in pain.

I guess i am in a catch 22 we did a chapter 13 in may 2006 we converted to a 7 aug 2007 but my credit reflects a chapter 7 in may 26 2006 and i have ask for a update but of course they says it is correct even with me sending them in the court papers. So when this do i respectively have to wait till 2009 to get a good rate. right now before discharge i have a 650 640 630. everything on my credit as of now is reporting correctly but the bk. I figure by the end of 2008 i could have 20% down. And maybe have a score of 670's. We don't have car payments nor will we need cars over the next 5 yrs. I just really don't want to rent till the end of 2009 because we are moving to a new state in march of 08 and really would like to look to buy at the end of the yr. any ideas i could do a first time buyer program but my hubby couldn't just hoping that i don't have to live with inlaws till 2009 LOL