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EnC's Homebuying Journey

The last post in this topic was posted 2786 days ago. 

 

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I should have started this earlier. I have an ongoing credit journey thread, now we're focusing on buying our home...which is what brought us here in the first place.

 

I didn't expect things to go so well with the credit repair/credit building so IMO it's wonderful to be writing this so soon :)

 

We started our credit repair in July 2012 and with the exception of a few paid CO's and a few paid medical collections that won't budge I'm happy to say our repair has been a complete success AND we've been pre-approved for a mortgage loan. The pre-approval we have is for an FHA loan and we've run across problem after problem with the houses available in our area.

 

House 1: Offer accepted the day we were planning to put in our offer (BOO).

 

House 2: Some big foundation problem, we decided not to move forward at all.

 

House 3: Horrible tenants that we feared would damage the house upon eviction. Bank stipulation was that buyer "deal" with the tenants.

 

How we're on to house 4. I'm worried about jinxing this :( We saw house 4 several months ago, it was a short sale and I contacted an agent (before we had our pre-approval). I felt a bit bad about that but she only showed us the 1 house so I guess that wasn't so terrible. Anyway, the owner got foreclosed on and our agent just told me that the house is coming on the market as a foreclosure this week! Pending any damage that the owner may have done at the time of foreclosure I'm confident this is the one. As with the other properties this one does have a big problem.

 

No electricity :( I really mean no electricity...the owner leased a solar system for the house and it was taken when he was foreclosed on. So, there is no PG&E and no solar. Because the property is 40 acres we need a different type of loan (USDA). I spoke with a USDA lender this morning and he said he recently did a loan with basically the same problem. The difference was that the one did never had any type of power...the builder got foreclosed before the house was finished. So, he's looking into it for me right now. If he calls back with positive news (IE we can go through escrow and have a grace period after closing or some variation of that) we'll probably be making an offer.

 

I looked on RealtyTrac and it looks like the default amount is much lower than our pre-approval amount :D The z-estimate is a good amount over what we're expecting the list price to be. I know none of this is certain but I'm hopeful. Looking at recently sold properties in the area gives me even more hope.

 

I'm trying to sit here patiently but it is not easy. I'm ready to pack and move! :D Fingers crossed that this house is the one.

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I wouls see what the electric company, federal, state and local credits for solar where before hooking up a regular meter. You may find solar is the way to go. My local company will let you see the past year or so of electricity usage in a place, you may want to pull those. Is any of the framework still atached to the house?

 

I would make sure my home inspector went over where the solar attached to the roof (and in attic) with a fine comb. Old owner could have ripped it out and not filled in bolt/screw holes and watere soaked in.

Edited by saladdin69

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Eh, I never thought of any of that. We'll definitely look into the solar option and any potential damage from the removal of the solar system. I believe it was the company who leased it to him that took it, hopefully they'd have respect for the home and follow proper guidelines in removal of the system. Thank you for mentioning that, I'm so excited right now....I am not thinking of all the ins and outs I need to slow down and assess things better :)

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No electric is going to be a huge financing problem. You must have power, period. Electric poles run about $5,000+ each installed.

 

How about looking for a nice surburban home with a sidewalk and running hot water.......... :grin:

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Actually, it looks like we're going to be okay with the electric issue. My agent said that the seller will most likely be willing to bring in the electric and my lender is good with that. We still have to wait for it to be listed though. Everything else is good :D

 

In regards to a suburban home...yeah not so much. We moved away from the city life for good reason. Wouldn't trade what we have for a free house. The wonderful part about where we live is we only have a 5 minute drive to the grocery store a few restaurants and gas station. 20 minutes to decent shopping and 35 minutes to major shopping/malls etc. We make 2 trips each week and that's enough city life for me! I have the best of all worlds here, we have skiing 1 hour away, beaches 3.5 hours away...it's perfect here.

 

I've been on the telephone all day :( At least things are looking good. I'm still watching for new listings and trying not to get my heart set on this house.

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Actually, it looks like we're going to be okay with the electric issue. My agent said that the seller will most likely be willing to bring in the electric and my lender is good with that. We still have to wait for it to be listed though. Everything else is good :D

 

In regards to a suburban home...yeah not so much. We moved away from the city life for good reason. Wouldn't trade what we have for a free house. The wonderful part about where we live is we only have a 5 minute drive to the grocery store a few restaurants and gas station. 20 minutes to decent shopping and 35 minutes to major shopping/malls etc. We make 2 trips each week and that's enough city life for me! I have the best of all worlds here, we have skiing 1 hour away, beaches 3.5 hours away...it's perfect here.

 

I've been on the telephone all day :( At least things are looking good. I'm still watching for new listings and trying not to get my heart set on this house.

Where do you live? I ask because you said "city life". In The Great State of Tennessee living in the country could have different issues then say someone living in Montana. Could help to have local people chime in if they know the area.

 

He had no power at all from the electric company? You didn't see a pole or disconected meter? I'm surprised that you would have to put in a pole and meter. I assumed the previous owner was "selling" unused power back to the company and would have a basic setup. Also, with no meter he was getting all electric power he needed from a solar system. That's a little odd. Not meaning it's not right, but odd.

 

If interested, call that leasing company and see if you can get a deal if planning on living there for long time. Think long term on this one.

 

What is used for heating? Curious if solar could generate enough in winter to heat with electricity.

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We live in Northern California in the foothills. It probably isn't technically "country" life but about as close as one could get living in California :) We have a population of 2500, most people here have between 10-20 acre parcels. There are several small parcels under 5 acres and some that are 100+/200+ acres. I'd be happy with 20 personally, if a good portion is useable. The property we are looking at is 40 acres with about 80-90% being useable.

 

I'm certain it was never hooked to PG&E and there was no buy back, we actually do that now at our rental...the tie in to the grid. The house we're looking at is .5 miles from the nearest pole, but after looking on google maps and talking to PG&E power is probably underground and much closer than we initially expected. I have a rough quote of $9000.00 to bring power in, but an electrician (I think) is calling me today and they are going out to survey (again I think this was the term used) and assess how much line needs to be brought in, either from the nearest pole or the nearest underground power.

 

Heat/Stove/Water heater are all on propane. The propane tank is owned and on the property, I am surprised the owner didn't take it with him. I'm assuming it was part of the home package when he built.

 

After talking to several solar companies it seems that getting PG&E is going to be better in the long run. We'll probably install solar down the line if this works out.

 

The same bank that foreclosed on this property sold another property that didn't have power. The other property was foreclosed also but it was foreclosed before building was complete. The bank agreed to bring in the electric...that's why this may work out. If they won't agree to bring the power in we may be out of luck.

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Thank you :)

 

Yay, hubby asked me if I want to go for a hike on the property today....lol YES PLEASE! I need to call our agent and make sure it wouldn't be trespassing...that would suck. He doesn't believe that power is .5 miles for sure and wants to see for himself...ugh such a man. He also wants to see if the owner took a few things that he told us would stay before (when it was a short sale).

 

So CB'ers I have a question...

 

My agent tells me that the listing agent has the listing but it isn't being placed on the mls yet. I'm confused and admittedly don't know how all the ins and outs of real estate work. It seems strange to me that it would take so long to go on the market. I understand that during the foreclosure process there are steps that need to be taken before the property is offered for sale, but once it's said and done and assigned to a listing agent...shouldn't it be placed on the mls? My agent says they aren't accepting offers yet. Does this sound right? The property was foreclosed on in November last year. It seems to me it should be on the market by now...anyone care to shed some light on what might be going on?

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I got a few answers today, the listing agent has done his BPO and the bank has ordered up a 2nd BPO...I think that's what our agent said. After the 2nd BPO comes back they should have an initial listing price. We drove out to the property today and its as lovely as I remember.

 

I talked with our USDA lender and he's running our pre-approval today :D I know we qualify and we're still under the 45 day timeline for multiple mortgage inquiries. I know we'll get the pre-approval, so unlike our FHA approval I'm not stressing out. All dispute notations have already been removed and the 1 med collection that was unpaid has been paid. We're just waiting for the property to hit the mls. HURRY UP ALREADY!!!

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I got a few answers today, the listing agent has done his BPO and the bank has ordered up a 2nd BPO...I think that's what our agent said. After the 2nd BPO comes back they should have an initial listing price. We drove out to the property today and its as lovely as I remember.

 

I talked with our USDA lender and he's running our pre-approval today :D I know we qualify and we're still under the 45 day timeline for multiple mortgage inquiries. I know we'll get the pre-approval, so unlike our FHA approval I'm not stressing out. All dispute notations have already been removed and the 1 med collection that was unpaid has been paid. We're just waiting for the property to hit the mls. HURRY UP ALREADY!!!

My advice is temper your excitement. This thing hasn't been listed yet so the bidding hasn't begun. If this is a good deal, you won't be alone in the bid. Short sells can take 6 months here and USDA can have long lead times. Don't go buying furniture yet. This could be a long ride.

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We're expecting it to be listed between $275K and $325K...quite a range, I know. Those are prices of similar homes in the area...either listed or recently sold. Average acreage here is about 10. I'm actually less excited today. PG&E is horribly unreasonable to bring in and I don't think the seller would go for it (rough quote is nearly 100K), full solar won't pass USDA or FHA financing :(

 

But looking at the grand picture I'm okay with it not working out. I do love the property, but most properties here are good size so I am sure we can find something that we like. We had discussed before that we'd prefer 10 acres, 20 max. 40 is huge lol. I really like the setting of the home though and we do so much outdoors that the property is perfect for our family. There are plenty of "perfect" properties and I'm happy to continue looking. We've discussed submitting an offer once it's listed requesting them to bring it in. My thought is worst case they say no, we could be surprised. Not holding my breath though.

 

I'm taking a 2 day break from real estate searching and hope to come back to it to find some new listings :) Our littlest turned 2 today so after her nap we're off for shopping adventures in the city and pictures...yay!

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When you described the distance I knew you were in the Nor Cal foothills. I bet I could pinpoint it to one of two cities too. I will definitely follow your thread as we are almost neighbors. I would love to live up that way, but custody orders keep me within 20 minutes of the East Bay

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Ugh, the property was listed today. It's well within our price (and approval) range. I don't see being able to afford bringing in PG&E though. I am all but certain that the bank won't do it. My agent said they had done it recently on a different property...but it turned out power was at the site already...just not hooked up...big difference :(

 

I'm trying to find a way to make it work. I have a few phone numbers to call tomorrow about doing the 203k streamline and hiring outside of PG&E to do the labor (I was told that it can be up to $15 a foot difference which could change things). PG&E's quote is for about $22 per foot and easements. I'm confused with how easements work...but the property corner is right across from a pole...so any easements would be on the lot not someone else's property, I'd guess that'd make it easier. I can hope, right?

 

I did look at 2 other properties today. They were horrible...with the exception that one comes with a cute kids playhouse. There are 2 more we're waiting to get access to view, not gonna lie, I doubt anything will compare to "The House" lol.

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I am not an expert, but an Easement is basically the legal right of access to use a portion of somebodys land. It will usually be legally recorded etc. I saw a home for sale recently that allowed for a utility company to have access/drive across part of the land. An outside contractor may or may not have access to use someones land, yet PG&E may have the legal right.

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^correct. It could also define a portion of the property being used for utility purposes. For example, I once owned a home with a portion of the yard on a busy street. When we built a pool, we had to stay 20 feet from the street because of a utility easement, meaning the lines ran through my property 20 feet in.

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Drove through the foothills yesterday and thought of you. Any update on your home buying journey?

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Poor you! The foothills were horribly hot yesterday! We had a power outage when it was 104 :( 2 Fires and a drowning on the American River also...yesterday was a rough one!

 

As far as the home buying we're at a stand still right now. We have had a busy busy week. We're hoping the house we like drops in price this week, we looked at our finances carefully and we *may* go forward even if it is a bit more than we initially wanted to spend. It would still be well within the DTI allowances....just more than WE wanted lol. Our current DTI is under 4% and our income allows for the higher purchase. I just may not be able to shop as much...which could be a blessing really :D

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Not too terrible, spent the day at Rollins :grin: As we were cruising the lake I thought about how awesome it would be to live around there, and it reminded me of you. Well, I have my fingers crossed for ya, so keep the updates coming!

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