WE GOT THE HOUSE!! LESS than 2 YEARS OUT!!

[tobee43]

ahhhhhhhhhhh please that darn lawn.......

[df04527]

AHHHHHHHH --- I'm so happy for you too!!! Now where's that lawn? lololol --- GOOD LUCK GAL!!!

[tobee43]

CLOSING TODAY AT 3 PM!!!!!!!!!!!! WHOPPPPPPPPPPPPPEEEEEEEEE DEEEEEEEEE DO!!!

and good thing they make house calls!!

[tobee43]

carlsbadmike...this is another thread that further explains "land contracts"....the best possible at the moment.... this is from another thread i posted


"i know it does get a bit confusing.....so here's some general info if anyone wants:

"Land contracts were very popular in the late 1970s and early 1980s. Back then, installment sale contracts, sometimes called contracts for deed, offered more attractive financing terms over the higher rates and rigid qualification standards of institutional lenders.
Land contracts began to disappear when loan requirements softened and rates dropped below 8%. But they have not vanished all together and, in fact, tiptoed back into the market in 2006."

What is an Installment Sale Land Contract?

Land contracts or contracts for deed are a security agreement between a seller, called a Vendor, and a buyer, called a Vendee.

The Vendor agrees to sell a property by financing the purchase for the Vendee.

The Vendor retains legal title and the Vendee receives equitable title.

The owner-carried financing can include an existing mortgage balance or the property can be free and clear.

Upon payment in full, the Vendor hands the Vendee a deed to the property.
All-Inclusive (Wrap-Around) Land Contracts

Wrap-around contracts contain an existing mortgage.

The Vendee makes one payment to the Vendor.

Upon receipt of the payment, the Vendor pays the underlying lender's payment and keeps the rest.

If the existing mortgage has a lower interest rate than the rate on the contract, the Vendor earns extra interest on money that does not belong to the Vendor.
This is how it works.

1.Say the sales price is $100,000.
2.The Vendee puts down $10,000.
3.The Vendee agrees to make payments on $90,000, bearing interest at 6.5%, payable $567.
4.The existing underlying loan is $50,000, payable at 5% interest with a payment of $268.
The Vendor earns 6.5% interest on $40,000 of equity, PLUS 1.5% interest on the existing mortgage of $50,000 and pockets $299 a month."

i just did a quick look up just so some that may not know what a land contract is has a "clearer" view of it....

http://www.bkforum.com/showthread.php?66156-Buy-vs.-Rent-An-Update&highlight=land+contracts

in our case we are doing a straight mortgage...not a land contract....the note is held by the owner and then a 3rd serving party is involved, whom we pay and they handle the mortgage for the owner...whom in our case is acting as the "bank".

[carlsbadmike]

Land contract

Hi Tobee,

Do you build up equity in the house in these land contracts before the end of the loan when the title for the house is turned over to the buyers? If you don't get the title of the house until the home is paid off to the seller, I'm assuming you can't sell it until then? Just trying to understand.

Mike

[tobee43]

it's STILL on!!!!!!! we are closing this upcoming week!!!!!!!!!!!!!!!

thankfully they are coming out to the house to do the closing....i was so worried about going one legged....LOL!!!!!

[SunshineGal]

We had our 341 on 1-11-11 and it will discharge, we fell behind on our current mortgage and we have been able to obtain approval from the bank to modify the mortgage. We fought long and hard for it and it is a fair deal but are now really struggling with the idea of taking the modification as they will require a reaffirmation as part of the deal. The home is upside down and we can build a list for and against leaving. In the end the list that keeps us here is all emotional and the lsit that takes us to the rental world is the rational list, (at least today)

I will probably need to post a new thread just to get the wisdom of the group as we work this out.

Hi Mike, I'm not familiar with the Washington housing market, but I did want to point out something that really isn't being talked about on the news. Option Arms, or "Pick a Pay" loans, where the borrower could chose to pay 1% interest, or the full payment amount, were still very popular until about 2007. These loans had a 5 year adjustable term, after which they converted to a straight amortized loan with a normal payment. When these loans re-cast based on the new loan amounts (quite higher if they have been paying 1% and tacking the interest on to the loan amount) we will most likely see another massive wave of foreclosures. In addition, many lenders allowed a 20% second home equity line behind the 80% option arm first so the borrowers will have little choice other than to pay the much higher payments or walk.

The other problem is that with the economy being so bad and the previous wave of foreclosures, we will have fewer borrowers able to obtain financing so I am thinking we will have a buyer’s market going on until at least 2013. But, this is simply MY opinion and we all know what they say about "opinions", lol.

SG

[mike22]

Congratulations that is great news for you guys. We bought out very first home just that way. I am happy for you guys and it is uplifting. My wife and I have only rented for 6 months our whole life but that may about be ready to change. We had our 341 on 1-11-11 and it will discharge, we fell behind on our current mortgage and we have been able to obtain approval from the bank to modify the mortgage. We fought long and hard for it and it is a fair deal but are now really struggling with the idea of taking the modification as they will require a reaffirmation as part of the deal. The home is upside down and we can build a list for and against leaving. In the end the list that keeps us here is all emotional and the lsit that takes us to the rental world is the rational list, (at least today)

I will probably need to post a new thread just to get the wisdom of the group as we work this out.

I am so happy for you and your family. Keep up the great work and congrats,

[tobee43]

Thanks for the good thoughts tobee. The most frustrating part about it, is that our mortgage (including PMI) would only be approximately $150 more per month, easily affordable for us, and no extra financial burden. Our homeowners insurance would also be close to what we pay in renters insurance as well. Having to find a comparable place is going to mean a lot of extra $$ in rent (we lucked out in our current place, it's nice w/o being crazy expensive). We love where we live, we like our neighbors, and are hoping for a case of extreme luck and fortune.

I'm doing 'woot' guy here for some positive thinking.

well, as difficult as it is to sell it todays market...as you see by us, STRANGERS things can happen....

maybe the owner will work with you!!!

i'm think positive all the way for you....i so hope it works out!

[bellows321]

bellows! thanks so much...and good luck with your situation! mention the "land contract" possibility that Toby wrote about and what my daughter did with her house she could sell...or better stated the people's credit could not get the mortgage so they wrapped around hers...

i would tell the realtor to "think outside the box".... and best of luck to you!! let us know how you make out!!!

Thanks for the good thoughts tobee. The most frustrating part about it, is that our mortgage (including PMI) would only be approximately $150 more per month, easily affordable for us, and no extra financial burden. Our homeowners insurance would also be close to what we pay in renters insurance as well. Having to find a comparable place is going to mean a lot of extra $$ in rent (we lucked out in our current place, it's nice w/o being crazy expensive). We love where we live, we like our neighbors, and are hoping for a case of extreme luck and fortune.

I'm doing 'woot' guy here for some positive thinking.

[tobee43]

I'm late to the party - but wanted to say Congrats to you Tobee

you can ALWAYS come late to my party pandora...been missing YOU!!! i know you have been a busy bee... but miss you anyway!!

and thanks!!! we are excited and scared all at once!

[tobee43]

I am very happy for you tobee. My situation is very similar. I am slated for discharge on Feb 28th, and my landlord is selling the house I've lived in for the past two years (never late or delinquent on a single payment). He offered me and my husband first dibs on the place, but we don't know how on earth we could get financing. His realtor met with us yesterday and we told him our entire situation. We'll see how it all pans out.

bellows! thanks so much...and good luck with your situation! mention the "land contract" possibility that Toby wrote about and what my daughter did with her house she couldn't sell...or better stated the people's credit could not get the mortgage so they wrapped around hers...

i would tell the realtor to "think outside the box".... and best of luck to you!! let us know how you make out!!!

[Pandora]

I'm late to the party - but wanted to say Congrats to you Tobee

[bellows321]

I am very happy for you tobee. My situation is very similar. I am slated for discharge on Feb 28th, and my landlord is selling the house I've lived in for the past two years (never late or delinquent on a single payment). He offered me and my husband first dibs on the place, but we don't know how on earth we could get financing. His realtor met with us yesterday and we told him our entire situation. We'll see how it all pans out.

[tobee43]

Grats tobee, I know you were really looking forward to that!

So, are you gonna dish on the details or what? How did you get the loan...who through... rates...etc.... you can't just say you got approved without some details. ;) And if its already in another thread I'm too lazy to look for it.

here's the true scoop...LOL!!!

the house is being 100% owner financed....we had been renting for the past year...i have been negotiating an "option" to buy for about 6 months with this guy. he's an out of state owner and had the place up for sale for 3 years...the house itself is only 6 years old, but was only lived in for 3 of those 6. the owner is an absent and lives out of state....and has been really wanting to sell it.

i sent him a contract in early dec.....with a decent offer really over 30k for what most of the houses have average selling in the neighboring area, but we had no problem doing that since this house has just about a new in ground pool...cage...and extras as well as it's 4 bedrooms while most in the neighborhood are much smaller.... we had been asking him to hold a 15 straight mortgage at 5%.....i would handle all closing docs...and of course upon his atty's review blah blah blah....asked him if he would accept partial down payment via the past years rental amount.......to my shock.......spoke with his atty last friday and yesterday got the signed contract in the mail...overnight!!

good deal all the way around! we are paying the title co., etc., i'm drawing up the mortgage agreement etc. all for his atty to review and approve...it a done deal...most cool!!