315 Elm Street in Gardner,MA.01440 is not listed as a Forclosure,it is currently for sale for $249,900.It is a three family with two garage spaces and 3,495 square feet of living area.All three units are rented with a gross rent of $2,550 per month.Feel free to contact me with any further questions.
Dimacale & Gracie Real Estate
59 Main Street,Ashburnham,MA.01430
Hi you are not alone unfortunately, I do not know where your intended home is located but it may be that your home is located within a declining market area. We have seen this impact. First I would sugges that you speak to your lender and as you have paid for this appraisal request a copy- once you have the information on the comparisons which were compiled then do your own homework with the assistance of your Realtor or real estate agent you are employing to represent you in this transaction. A knowledgeable agent will be able to determine if there were other circumstances which diminished your property value which the lender may take into consideration. I am told that when it comes to FHA property appraisals that the appraisal follows the property and is assigned a case number so no use trying to locate another lender, they will see the information so if you are still interested in the property and the seller is not willing to renegotiate to the appraised value then it is best to try and resolve this appraisal by providing accurate information. Unfortunately a number of appraisals are being conducted by appraisers who are appropriate in their own markets not the market where the appraisal is being conducted. Do not be fearful to work with your agent/Realtor and determine the validity of the comps used in this transaction and determine if they are using a factor if the property is located in a decreasing market.
Should you have any other questions I would be most happy to assist you or your Realtor.
You can reach me at my corporate email address of MaryBeth@TradeWindsRealtyGroup.com... more
With all due respect, it's clear that with a FICO score of 543 you've made a few bad financial decisions. And you're trying to figure out how to make another.
First, improve your credit scores. But beyond that, work on improving your money management skills. People tend to overlook that; they sometimes think that all they have to do is improve their scores and everything will be OK. Credit scores are a reflection of your spending and repayment patterns. Those need to change, too.
Second, you don't even have enough money for closing costs on the sort of property you're looking at, to say nothing of a down payment. And that doesn't include any repair expenses, either. And that doesn't provide you any cushion in case of major repairs, or vacancies.
Third, the $8,000 tax credit shouldn't be the deciding factor, especially not when you've got the negatives listed above.
Fourth: What $8,000 tax credit? Even assuming you and your fiance both qualify for the credit, and assuming you could afford to buy (without a down payment and without a reserve fund), and assuming you could qualify, there's no $8,000 at the end of the rainbow. It's a 10% credit up to $8,000. In a multi-unit building, it's only applicable to the unit you occupy. From the IRS web site at http://www.irs.gov/newsroom/article/0,,id=206291,00.html :
Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit?
A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. You may not use the entire purchase price of the duplex to determine the amount of your credit.
So, if you bought a 2-family building for $50,000 and the two units were equal-sized, then your dwelling--your unit--would be valued at $25,000, so your tax credit would be $2,500 . . . not $8,000. Check with an accountant for details.
In short, you don't have the credit or the cash to buy. Nor would you receive the tax credit you're thinking you would.
Your plan isn't a bad one--buying a small building, living in one unit, and renting the others out. However, you need to improve your credit. (Well, there are ways to buy with not-so-great credit, but you need to develop your money management skills.) You also need to save more cash. Even if you bought with creative financing and eliminated the down payment, you'd need more than $5,000-$10,000 for closing costs plus reserves for repairs, unexpected maintenance, and vacancies.
Hope that helps.... more
I agree with the other agents - hold firm! This is especially true if the home has been on the market for awhile. Are you working with an agent? Is this a FSBO?
Write up a list of ALL the home inspection "issues" this home had and emphasize that you are "only" asking for a $1500 credit towards a new roof.
And if there is a listing agent, she/he does not want this deal to fall through and neither should the seller. If the deal falls through, the home inspections issues have to be disclosed to future potential buyers at showings.
AND, listen to Scott - they should fix it or credit you at closing. And, watch the time period for responses.
Angela Clark... more
A 203K loan seems appropriate but this is also credit driven and requires a credit score higher than the typical FHA loan. You must seek out a knowledgeable mortgage officer to assist you. In my area Wells Fargo has been very efficient and effective in securing these loans for my sellers. If you would like additional information please contact me, I would be most happy to direct you to a lender who can assist you.... more
It really depends upon what you agreed to. Many times a short sale offer the home inspection and PS are triggered by the short sale approval. I would ask for the short sale approval or approvals.
Go back to your original contract to purchase and see what you agreed to.... more
It is different for every individual and different at any given point in time
It will depend on what else is in your report at a moment in time. Change one variable, the outcome is also changed.
There are more than on bureau, each using a different formula, so it will also depend on which score you speak.
See http://www.myFICO.com for more information... more