You posted a similar question at http://www.trulia.com/voices/Financing/GREAT_home_GREAT_price_SHORT_SALE_and_HIGH_TAX-321688 but you seemed to have added a little different information and were able to squeeze your question in too (Trulia really aught to allow more characters within the initial question).
For the basis of my $1,950/mo estimate in your other question, I was using a 4% interest rate on a loan amount of $216,905 ($213,911 + 1.4% VA Funding Fee), which gives a principal/interest payment of $1,035/mo. Property taxes of $808/mo ($9.7k/year). Insurance of $100/mo ($1,200/year) = $1,943/mo.
When your offer is accepted on a short sale by the seller, it still needs to go to their own bank for review/approval. If you are the first offer, that process can take many months (3-6 months isn't uncommon), as the sellers bank needs to confirm the value of the property/compare it to the amount the seller has accepted, as well as get approval from the investor of the seller's mortgage (this isn't usually the same as who they make their payments to). After all of that is done, then the seller's bank will issue a "short sale approval" which usually matches the terms that the seller has accepted... but sometimes it is different/less favorable to the buyer and then you need to determine if you want to accept the seller's bank short sale approval terms. If there has already been a previous accepted offer but the buyer bailed out for whatever reason, and all or part of that process has already been done, then it may just take a few weeks to a couple months for the new short sale approval to be issued (there was one situation where the bank was ready to approve a new offer within 1 week - talk about a short short sale).
I am not sure how property taxes are reassessed in Pennsylvania, but it could very well be based on the new sales price. You can actually figure it out on your own. You can call up the township & county to find out what they base their assessed values on - and if a sales price for much less than their current assessment happens, would they take that into consideration. Hopefully a real estate agent from this area will chime in with exact specifics on this though. In California that is how it is done though, it's all based on the new sales price (which can drastically change the amount of property taxes - up or down).... more
Hi, There are some loan products that allow the purchaser to roll there closing costs into the loan such as FHA loans. As for 100% financing options (including down payment & closing costs) those are extremely rare if any these days. Depending on your needs and occupation you may qualify for some special programs like these but it's best to contact a mortgage professional directly. You can call any broker you like to inquire.
If you need to nail this down, I suggest you choose a Title Company and go visit them:
They will do a dummy HUD1 for the figures you give them, and you can see the total amount that you would need to bring to the Escrow.
Please contact a Realtor and have them represent you; it will cost you nothing, but not having them could cost a lot.
You need to do some homework. First, you should do some reading about the process of buying a property. You don't need to master every detail. You simply want to get a high-level understanding of the process and the players. Second, if you opt to work with an agent (which is a pretty good idea), then you'll need to interview a few, and select the one with whom you can best relate. Finally, your agent will help walk you through the buying process.
At a certain point, you might also want to have a real-estate attorney to review your documents. Yet, some people are just fine without doing that.... more
You can start by contacting the lender and request a rate negotiation to a fixed 30 year rate. If they won't play ball, we can help you with a short pay refinance. Done several but we have to go FHA, VA or USDA.
I reached out to one of the lenders I deal with on a regular basis and the anwer to your question is below. If you need any further information please feel free to contact. If you need information on a lender please let me know and I can provide you with that information as well.
Yes- you can do what is called a FHA streamline- there is no appraisal done. But you cannot roll in closing costs- so either the borrower has to bring closing costs to the table or the rate can be raised enough to provide a lender credit to pay closing costs.... more
I'll ask the lender I work with most, Fairfield Mortgage.
With foreclosed properties, often there is a 90 day restriction in the deed from the seller. That is, the seller is the one who restricts whether or not the next owner can sell in 90 days. This is to encourage owner occupant buyers.
I'll let you know what Fairfield says ASAP.
Let me know if you have other questions!
Keller Williams Realty Metro Atlanta
m 404-492-7804 .:. f 678-815-0955 .:. firstname.lastname@example.org... more
Am I....what??? responsible to fix it? Well you can look at it a few ways.....you can fix it now and this buyer can buy the house or you can opt not to fix it, the buyer will be unable to secure the mortgage and fulfill the mortgage contingency and you'll have to wait for another buyer to come along that does NOT need FHA funding. 80% of my closed transactions were FHA lending.
How much does it cost to fix it? Did you get any estimates?
Gina Chirico, Sales Associate
Lattimer Realty... more
The builders prefer that you use their lender, as it allows them to save on fees and offer discounts to you, the buyer. VA, FHA and other loans do cost the seller/builder more money, so not all sellers will work with buyers with these loans. It isn't a question of discrimination but an issue of costs they don't want to pay. Some builders are more flexible than others. You should have your Realtor talk to the builder.... more
Hi, It partially depends on how long you've owned it, the values in your area and what else is on the market. Typically kitchens and bathrooms bring the best return, you want to make sure you will make your money back. If you bought it a few years ago and still owe a large amount you should probably price it with the updates in mind. If you have owned it for a long tim and have a good amount of equirty the consider doing the updates if they include kitchens and baths. It may not make you any extra money but can most likely get you a quicker sale. I hope I made sense to you :o)
Fannie Mae & Freddie Mac both require a 620 score to qualify for their loan programs, other types of conventional financing usually require at least the same if not a little higher. There may be local banks who offer loan programs other than the normal Fannie Mae & Freddie Mac loan programs, where if you have enough of a down payment they may be willing to look past scores less than 620. If you are a member of a smaller community bank I'd start there... but with 15 more points you could have a lot more options and are less likely to get screwed. Unless you are in a dire situation where you have to buy a home right now (I don't know too many of those) then personally I'd recommend you continue to work on your scores.... more