layoff

I'm currently working with a client who is a first time home buyer. He and his wife are in the process of buying a home. The buyers and I have found them a home they are willing to buy and have successfully executed a deal with the seller.

This is the second time the buyer and seller have agreed on a purchase price and buyers conditions. The first time the buyer was not willing to commit to the purchase of the property due to issues that had been brought up during the home inspection.

Usually a buyer will request the seller to compromise with the cost to repair the issues since a home and its features are exposed to wear and tear. Doors, carpet, flooring, furnace's... wear out and eventually need repaired and or replaced.

There are 6 ways to approach issues found during the home inspection.

1. Ask the seller to repair or cure the issue. e.g. fix a broken window.
2 Request the seller reduce the purchase price for the cost of repair.
3. Depending on the actual issue the buyer might compromise with the cost. e.g. living room carpet has wear. cost to replace $1500, seller agrees to pay $800.00
4. Buyer rescind their offer and walks away from the deal.
5. Buyer may purchase property as-is and makes the repairs themselves or lives with the issues.

Yesterday evening I received a phone call from the lender of this client informing me the client has been laid off. This is going to present a problem since the lender requires the buyer to have a job.

Now back to the fact that this is the second time the buyer has had an accepted offer for this property. The buyer wasn't interested in approaching the seller about making the repairs and decided to look for another home.

Then after a couple of weeks of looking at homes the buyer realized this home is going to be the best fit for them. Now they buyer and I have approached the seller again with a new offer reflecting a lower purchase price.

The new purchase price is lower than the originally agreed on price since the buyer is gong to purchase the property without requesting the seller to make any repairs or updates.

Instead of requesting the seller to make repairs the buyer plans on obtaining a mortgage higher than the purchase price agreed on between the buyer and seller in order to finance the repairs the buyer would like to have made to the home.

The loan the buyer is planning on using is called a 203k streamline loan. These loans have been around for many years and are more common now that many homes purchased these days are bank owned that are in need of repairs and updates.

Since the buyer decided to look for another home this caused a delay. Then back to the original home to negotiate a new deal created a delay, in addition the buyer chose to avoid asking the buyer to make or assist in repairing the home this caused additional delays, streamline financing takes additional time since the repairs being financed need to be accompanied with quotes, and the fact this deal started just before Christmas/New Years causing even more delays.

The point to all of this is now that the buyer is unemployed the lender will not sell the buyer a loan and this deal will be dead. Had the buyer taken the professional advise given to them weeks before there would have been a chance the original deal could have closed before he became laid off.

There is an additional fact this buyer is in a trade where layoffs are very common and expected. He is probably accustom to this and financially this might not effect them. However the bank doesn't look at it the same way.

You do your thing, I'll do mine!

Winter Blues

Happy New Year!

This is the first time in quite a while that I've even logged into my blog account. I'm hoping to start the year off in a positive direction.

This blog is more of an update than an informational spat. Since I haven't posted anything in such a long time I'm at a loss for ideas. I'm sure there are plenty of them just waiting to come out but I haven't put myself in this type of mind set.

The past year has had many ups and downs. Many good times and a few bad. This is life and should be expected.

I know that this is the third year I've been blogging and every year I claim I'm going to blog more often and this year I pledge to make a better attempt at it.

If you've read this blog in the past or are new to it feel free to provide feedback. I'm not easily offended and will consider any comments or suggestions as constructive criticism.

This blog is an amature blog with professional opinions and advise.

Thank you,
Tom

Working through the kinks.

One of my clients had found a property he was interested in purchasing. We were able to attain an accepted offer. This property is bank owned and being sold as-is.

The buyer and I went to the home so he could do his own home inspection. He came prepared with a check list of items to check and confirm are in good working order. The buyer was to the point in his inspection where the water needed to be on throughout the home in order for him to check the pipes, faucets, water heater, and toilets.

I volunteered to craw under the steps and turn the main valve on to find a pipe leaking directly above my back. This really sucked since the temperature in the home was a nice 38 degrees and not much better outside. Needless to say I was pretty cold.

Normally I would highly suggest hiring a professional home inspector who is qualified in home inspections. But in this situation the buyer is purchasing a FHA loan which will require its own home inspection completed by the appraiser.

We passed this portion of the inspect since there wasn't any way to check the items listed since I turned the water of immediately following the unnecessary shower.

I suggested to the buyer we have a licensed plumber give the bank a quote to repair the plumbing problems. A plumber then when to the home to discover the entire plumbing system throughout the home had frozen and most of the pipes had been damaged. The total cost to repai was $5000.00. The bank refused to pay for the plumbing repairs so my buyer walked away.

We now have another accepted offer on a home that I believe is a better buy overall. This was a struggle since the seller (a bank) didn't want to sell the home to a buyer using a FHA loan. The reason I'm sure is that FHA loans can sometimes be very strict about the overall condition of the home and the seller (Bank) didn't want to chance putting a deal together with the buyer and having it fall apart due to the condition. Then the bank would lose that marketing time.

The buyer has decided to purchase the home using a FHA 203k loan. This is a program where the home is bought with a loan to purchase the home and an additional loan to repair or update items of a home.

For example: The home needs windows, or bathroom repairs. Also this loan can be used to make additions to the home like adding a family room. The way it works is the home has to appraise for what the impovement costs plus the purchase price. So say the buyer buys the home for $50,000 and has $25,000 in repairs and updates. this total is $75,000 the home has to appraise for atleast $75,000.

So thats where we stand.

Take a break.

Today is Saturday, I woke up with the intentions of working only 2-3 hours today. These 2-3 hours would have been working on items I wasn't able to finnish yesterday before 6:00 p.m. before haveing to pick Joey up from play practice.

Beginning this morning into the afternoon I've been trying to log into one of the websites to which I have work to complete and the site is down. Inevitably creating more of a delay in finishing my work.

This delay is a problem can create several other issue. First it has the potential of making it look as if I'm not finishing my work on time, second the delay might lowers my score with this company and reduce the amount of business they will send me and third delaying when I can complete the work.

I had full intentions of completing this work before noon, heading to the gym by noon and being home by early afternoon. This way I would have the rest of the day to spend with the family and then heading to grandpas house this evening to hang out with others. Then tomorrow (Sunday) I would take the entire day off of work and "take a break".

There is good new though. I've received two phone calls today from other agents who would like to show one of my listings. Another agent who submitted an offer last week took her clients through the home again today and should have a response to the banks counter offer! And I received an email from HUD with an accepted offer from them!

Maybe there will be time on Monday to take a break.

-Tom

Fishing / Camping Trip

Anyone know where I might find a place in Ohio to take a few buddy's on a weekend fishing trip.

I would prefer the location be fairly secluded if possible that has vehicle access. Other wise we might prefer going somewhere that has cabins.

We're not opposed to throwing up some tents, cracking open a few beers, and playing some music while we exchange stories and humiliate each other.

I have a small row boat and might have access to a second row boat we would probably like to take with us if possible.

The trip would probably be sometime late May early June. We would like to be able to catch pretty much anything that can be panfryed. Croppie, Perch, Walley, Cod.....

Sleepless in Toledo.

It's Saturday morning and I haven't been able to fall back to sleep since 6:00 a.m. Since I haven't been able to sleep I decided to get up and do some work. I completed a few BPO's and have been surfing the web since.

So this blog will be completely random and have no sense of direction. Not that an of the other posts I've made have been anyway.

I've recently been told that one of the contributing factors to my inability to sleep is a side effect of using a computer or laptop often and especially late at night just before I head to bed. (hey that rhymes).

Something to do with melatonin?? and the lack there of. I'm not sure. I'm taking a medication that's supposed to help keep me asleep. This medication also is supposed to be the only one available that doesn't interfere with my sleep apnea. It's $45 bucks with a prescription.

There is supposed to be some herbal substance that I can take that will do the same or have the same effect on me. I'll probably try it next month once the prescription runs out.

We'll See

Happy New Year!!!!!

I hope everyone had a fun and safe New Years. Now that we're in a new year I wish only the best for everyone. May this year be more positive than the previous years.

This new years eve was spent with my fiance at her managers home. The evening included playing pool, beer pong, poker, and conversation.

To satisfy your taste buds there were deep fried turkey's, very good I must say. Pizza dip, sausage balls, cocktail weenies, mexi-dip, peanuts, cheese, and some sort of breaded cheese?

On the beverage list was draft Coors light on tap, champagne, liquor, jello shots, water, and soda.

I enjoyed myself talking to new people and being myself as usual. Cracking jokes and being silly. Christie appeared to enjoy herself too. We made it home before she could turn into a pumpkin.

Take care and we'll talk soon.

-Tom