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Home Buying in 55433 : Real Estate Advice

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  • Home Buying1
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Activity 227
Thu Apr 18, 2013
Dean Gupta CRS answered:
Yes there few things can be in your favor. First live in the building yourself--so it is owner occupied. 2) then if you can show the Rental leases from 2 or three unit, then 60-70% of that income can be used towards your income and your qualifying could go up. But main thing here could be your credit scores. You may also qualify for city programs, down payment help too. There are 100's of programs are there and some fine prints are there. These rules and conditions keep changing virtually every month. So you have to work with a lender that you can trust. I can recommend you but you will have to call me. I probably can not give contact info in these write ups. Good luck. ... more
0 votes 24 answers Share Flag
Mon Apr 8, 2013
Ben Johnson answered:
0 votes 6 answers Share Flag
Mon Apr 15, 2013
Don Tepper answered:
Easy.

Any good real estate lawyer can do the paperwork. There are two documents--a pretty standard lease and a customized option. Each one is different, but generally the option specifies the purchase price. It also specifies the option fee--the amount of money you're paying for the option. That's generally credited toward the purchase price if you buy. It specifies whether any of your lease payments will be credited toward the purchase price. And the option specifies the length (make it for 3 years or more) and under what conditions the option can be extended.

You may be told that the option violates the "due on sale clause" contained in the seller's mortgage. That's probably true. The seller is giving you an equitable interest in the property--that is, the right to buy the property--even though you haven't bought yet and may never buy. The lender--if it found out and if it cared--might foreclose on the property. But not too many find out and even those that do generally would rather have a performing loan than foreclose on it. A real estate lawyer can give you guidance on how to minimize those risks.

Then at some point during the option you'd purchase the property. You'd go out and get a conventional mortgage and buy it.

There are also a lot of other ways to purchase the property. The seller could do a "wrap mortgage." There's also a technique using landtrust--see http://www.landtrust.net for more information. Essentially, the seller would put the property into a trust. You'd be added as the resident beneficiary. The land trust documents would--similar to a lease-option--specify the length, conditions, etc., of the arrangement. The price can't be set up front--it'd have to be sold to you at full fair market value. On the other hand, that would be lowered by payments you'd be making in the lease.

Again, a good real estate lawyer should know how to go about it.

Hope that helps.
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0 votes 5 answers Share Flag
Wed Jul 2, 2014
Chris Block answered:
Ok TAKE A DEEP BREATH IT WILL BE OK! Hahaha

It is quite possible the agreement could have been for a year. I know some agents that will do standard 3 or 6 month agreements. Some like to have every one go till December 31st for simplicity sake.

The reason why realtors are sometimes loose on the length is because exactly what you said. It just is not good business to try to hold a buyer to an agreement they don't want to be a part of. This is a customer service biz, and in truth the realtor did not contact you for 6 months. I contact people at least every 2 month's that is in your situation, because guess what I would like to still have your business! You feel good with the other realtor AND THAT IS JUST FINE!

There is a legal side of things when it comes to procurement. Bottom line? Everything you said in the question makes sense to me. If you feel this current realtor deserves your business then just tell prior realtor about the situation. If the contract is still current request a cancellation (and request a copy of the contract too). That way you can provide it to your new realtor and move on.

I like to think the majority of realtors out there will understand and do what is best for YOU. Hopefully this guy or his broker does not make a mess of things. Just remember at the end of the day we realtors are here to serve the customer. If you are happy with your current situation then that is how it should stay.

Hope this helps!

Chris Block
Realtor North/NE Suburbs
651-307-7663
chrisblock@thebridgerealty.com
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0 votes 22 answers Share Flag
Mon Apr 8, 2013
Donald James answered:
Good questions. I am assuming your have your own buy-side Realtor. Your professional Realtor should lead you through contracts line-by-line.
0 votes 5 answers Share Flag
Thu Dec 5, 2013
Brian Amiot answered:
Here is a great website for statistics. You can look at the percentage of original price by city, zip, etc. Plus a whole lot more!
http://thething.mplsrealtor.com/interactive
0 votes 14 answers Share Flag
Fri Feb 7, 2014
Kevin Bumgardner answered:
Great question Brie!
There are some good areas in both Minneapolis and St Paul that could meet those needs. I'd be more than happy to give you a tour when you're in the area. I have many ideas around the Grand Ave area in St Paul or along Selby. You might also like many of them in SW Minneapolis...all depends on what kinds of shops and eateries you enjoy. We can talk about it too.
Thanks,
Kevin
612.386.8773
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0 votes 19 answers Share Flag
Fri Mar 15, 2013
David O'Neil answered:
Tax value is just an estimate for taxation purposes and is not what it will necessarily sell for. I wouldn't stress to much about it. Tax values, particularly in Minneapolis, are often quite low. Have a good, quality, local Realtor do a market analysis on your property and that will give you the actual price your home will sell for.

Dave
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0 votes 9 answers Share Flag
Sat Apr 6, 2013
Elizabeth Fuller answered:
First, check the rules. Senior condos may not be rentable to others. Your concierge, if you have one, will tell you. If not, you need to check the rules. Remember, these were built under HUD jurisdiction for the most part, and may be restricted as to more than age. If you need help, I do have quite a bit of experience in this area, and have sold these senior coops and condos as well. Liz, 612-986-4105 ... more
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Fri Apr 26, 2013
Jessica Tracy answered:
You can go online at http://portal.hud.gov/hudportal/HUD?src=/buying/loans and click on the FHA Lender list to find a mortgage broker in your area. I would also check to see if any local banks or mortgage brokers are holding classes for first time home buyers. The classes noramally have mortgage brokers there to answer any of your questions, plus Realtor, attorneys, home inspectors, and insurance agents to discuss the home buying process. Good luck with your first home! ... more
0 votes 14 answers Share Flag
Thu Mar 23, 2017
Chase Lenz answered:
Thu Apr 11, 2013
Ron Jensrud answered:
It's best to speak with a lender about that. I wouldn't consider an FHA loan at the moment. Too Expensive. Look for a Conventional with minimum down.
0 votes 13 answers Share Flag
Wed Jun 17, 2015
Chris Block answered:
My best guess is that you don't have many options available. Before seeking legal representation you need to see what exactly your buyers signed (my guess the bank had a bunch of addendum's for you).

From the standard PA situation the seller has every right to cancel the contract if the buyer does not meet the closing date. From a practical standpoint I have never had it happen to me, but I think lenders sometimes don't take closing dates seriously enough. God I hope that horror story never happens to me.

As for bank owned properties there usually is always an addendum that talks about closing date. Some lenders like HUD just have a standard 45 day closing for financed offers. I already have the extension document if I need it, but there is a very real possibility that they would attempt to charge a daily penalty to my buyer. There is some legal stuff there depending on what is delaying the closing.

But here is the kicker: jumbled in all of those addendum's the lender usually puts language reserving the right to agree, or disagree, to your extension request.

I DOUBT THAT ANYWHERE IN THE PURCHASE AGREEMENT IT SAYS THE LENDER MUST AGREE TO A CLOSING DATE EXTENSION. The fact they verbally agreed to an extension will obviously mean nothing.

I will end with my own story. I wrote an offer on a Fannie Mae property for my buyer who happened to be VA. My lender told me we needed 45 days to be safe on VA loans. I did pretty much the same thing you did, because lenders usually won't allow us to write "closing date 45 days from fully executed and signed PA".

Well we got our offer verbally accepted, and then Fannie Mae sent over all the addendum's. THE STUPID PART IS THAT EVERYTHING HAD TO BE EXACTLY THE SAME AS STATED ON THE PA. When I started looking at the closing date situation I knew we had a problem. Tried talking to the listing agent and she pretty much told me it won't happen, because once again nothing can change from the original PA. Who cares if I pointed out that her own lenders policy was 45days?

End result? I cancelled the PA with my buyer and it took a very long time to finally close on another house.

Now I am working with HUD and they politely set the 45day count as soon as I receive all the seller signed docs. What I have learned is that every lender is different. I now ask the listing agent what their closing date policy is, and most of the time to be on the safe side I account for 10-14days extra to get all signatures. If the bank counters me on the closing date than we can clear everything up then.


Lastly, I won't say that you should not encourage your buyers to seek legal advice. What I would do however is try to be as upfront and honest with them NOW about what they signed in the purchase agreement. That language should be there. You and I both know most buyers do not fully take the time to review these docs. If this closing does not happen they are going to be very emotionally attached. They may want to attack someone, and between the lender/bank/and Realtor we tend to be the easiest target.

~CHris
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0 votes 7 answers Share Flag
Mon Jan 27, 2014
Matt Christensen answered:
Anish,

I always recommend that a buyer have representation from an agent. Realtors work with negotiations all the time and know what is reasonable, what areas you can negotiate for a little more. They can look in on the transaction with a neutral set of eyes, it is easy to miss things in the excitement of buying a new home. There will be many excellent reasons given by realtors in response to your question. Feel free to contact any of them that reply or I can make a few recommendations for you if you wish.

Let me also say that sometimes a builder will try to discourage people from obtaining representation, by stating that you will have to pay the commission. Any reputable builder will be familiar with working with clients who have buyers agents. Personally if they tell me this I would find a different builder.


Good luck!

-Matt Christensen
NMLS# 373371
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0 votes 42 answers Share Flag
Mon Feb 25, 2013
Matt Christensen answered:
Abhifyan,

I have not dealt with this specific situation before. I will foward your question to an underwriter and post back here when I get an answer.

-Matt Christensen
0 votes 6 answers Share Flag
Thu Feb 21, 2013
Stephanie Fox answered:
I think you might see an increase in new home construction as we move into warmer weather. Home prices are rising and the inventory of homes on the market is smaller than it has been for years. People are buying up lots and developers are looking for more land, a good indication of increased home building. ... more
0 votes 9 answers Share Flag
Tue Apr 19, 2016
Ron Thomas answered:
This is rather silly;
If the process have progressed to the CONTRACT stage, (what you describe), you are UNDER CONTRACT!
If it hasn't; you are not under CONTRACT.
0 votes 17 answers Share Flag
Mon Jan 28, 2013
Ryan Bretzel answered:
I just looked and there are 59 single family homes in the Wayzata School District under $450k. What you really need to figure out is what is important to you and your life style. There are many benefits to both townhomes and single family homes. Townhomes are great for those who are very busy and might not be able to maintain the home on the outside. Single family homes are great because they normally appreciate better than townhomes and you have more privacy.

I'd be happy to send all the listings that fit your needs if you tell me a little more about what you are looking for. Being first time home buyer my best advice is to sit down with a realtor so they can explain the process from start to finish, fill you in on all the pitfalls of the market, and do a needs analysis. They can then refer you to a great loan officer who will help secure your best financing options.

If you would like to meet and chat about your options or would like more info on the homes available just send me a message. Best of luck,

Ryan
... more
0 votes 10 answers Share Flag
Thu Feb 7, 2013
Chloe Chung answered:
Seller's asking price is not the actual selling price until the lender approved the price that the seller asked. You have to know that the real seller of the short sale property is not the owner of the property but the lender of the first mortgage the seller has.Usually seller's asking price is lower than the market value of the property. Therefore check the market value of the property and the loan amount that the seller borrowed from the first mortgage.
If the asking price is lower than the market value and the loan amount of the first mortgage. Better not make an offer lower than the asking price. Better talk to an agent who knows about the short sale property before you decide the offer price.
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0 votes 15 answers Share Flag
Sun Dec 15, 2013
Alicia Garatoni answered:
Hi Phenom --

According to the National Association of Realtors (NAR), lender owned properties sell at a 20% discount and short sales (where the seller owes more than the current market value) at a 16% discount.

Does this help?

Alicia
... more
0 votes 16 answers Share Flag
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