patrick.net

Troy,
what does TCO stand for?

total cost of ownership. All outgo less principal paydown basically.

I would imagine the place would rent pretty easy, and stay rented, for $1,000 or so a month. It's hard to say, because the rural areas with the acre lot type subdivisions do not have many rentals (I don't know of any personally - but I am sure they are out there), so the amount someone would pay to get away from all the crap found in town (see Investor's post) is hard to figure.
I am hoping for the total monthy payment with all taxes and stuff to come in under $1,100. That is the planned outlay. Most other costs associated with the house will be flat vs where and how we live now - I think/hope. WIth the exception of the dang swimming pool. I never wanted a pool, but it's there so we shall see. If it gets too crazy, the pool will become a planter.

waiting for the loan underwriting to get done. Should have some news next week.

loan underwriting still going on..... sloooowly.

Bap33 says

SIDE NOTE: The pool is the site of a mass suicide … of those big mean looking Jerusalem Crickets (I grew up calling them “sweet-potato bugs”) … must be 1,000 of them things in that pool.

was it filled with koolaide?

just had to ask. ;)

so far as the owner occupancy question, I haven't a clue why I asked. It was a couple of weeks ago...

Jim Jones never would have stood a chance against these bugs. And squirrles ... big mounds all around. Next spring will be a joy.

Squirrels, OMG. Get those suckers.

still jumping through lender hoops. This is insane. There is no excuse for the lax lending of the past .... but this Procto-system now in place is kinda TSA-ish.

one bad thing I have found ..... a GFE is heavy on the E and light on the GF.

Bap33 says

still jumping through lender hoops. This is insane. There is no excuse for the lax lending of the past …. but this Procto-system now in place is kinda TSA-ish.

There is an old saying "if you are burned while drinking hot milk, you better be careful while drinking cold butter milk" :)

How are the rental properties keeping up?

Where is this property? Big house for such low price in Bay area, I would be surprised.

Not the Bay Area, inland empire near the 99 if memory serves.

Central Valley 99

Here's what's happend of late.
Lender approval of loan
Lender oreders an FHA / HUD 203b inspection to confirm requested repairs and bids that I have submitted (5 times). (if anyone was not stupid, this would have been day 1, and not day 25) And this dude that came out is a failed contractor and a complete tool. He took on the role of house proctologist and spend 5 hours at the house. He then spent 4 more hours telling me and my REagent how smart he was. He had told me he did not like to do anything with REagents around because they always "feel I am messing up thier deal." Yes, he does mess up deals, and he is a complete tool. Me and my agent waited and waited for this guy to start talking about the issues we I gave bid on. He stalled and stalled until my REagent left due to getting late, and THEN this pile of crap inspection guy starts wanting me to sign some contract and crap. I asked "what's this for?", he said "it's just common procedure ... blah blah". So, I skipped reading the paper and signed it and went home. My wife called me about dinner being ready, to give you an idea how long this idiot had me there.

The next morning I sat and read the entire contract this dipshit inspector tool had me sign. At 8am sharp I called him and told him I was not comfortable with the contract he had me sign and I asked for some FHA/HUD documentation to support the positon and authority he expected to have in this deal. Since I am using a general contractor, and all subs are contractors, and all bids are broke down to labor and materials, this idiot tool has no friggin role -- and it pissed him off because he wants to have as many "draw bid inspections" as possible (my guess) because he gets paid $150 per inspection PLUS milage. I told him I would only need one draw inspection at project completion. He was all angry at that. So, I explained to Mr. Tool that I would be talking to my REagent and the Lender to find out WTF is up. Mr. Tool said he would not work with any changes in his contract. He said "if you don't like it, tear it up and throw it away". I went to Lender, Lender answered my questions - and made it clear that there was no time left to make any changes or adjustments and we now have to keep our lips firmly pressed against Mr. Tool's ass. I said a few words that you can not say in church, and left. THis is what happens when the wrong person is put in a position to have effect on others. THe tool's personality type is commonly called bullshitter assbite.

Now we all wait to see what this maggot sends as a report. This process is too slow and friggin insane. Escrow extentions are being requested. Stupid people are drawn to inspection work.

ok ... up date time.

I do not hate the inspector anymore ... he is just doing his job. But, he made my life suck more than it needed to.

We got an extention to 1/11/11 (that may be an omen huh?)

Everything that was requested to be done has been done. $1,675 in inspections and certifications thus far. All paid in cash as I went, to the suprize of all thus far.

The only lasting negative I have is the fact that the interest rates are creeping up as I sit waiting. That kinda sucks.

Anyways, the HUD/FHA inspector has all of the final paper work in his lap now ... as soon as he "ok's" the work detail and bid package, we should be funded and done.

Merry Christmas folks.

Bap33 says

Anyways, the HUD/FHA inspector has all of the final paper work in his lap now … as soon as he “ok’s” the work detail and bid package, we should be funded and done.

Merry Christmas folks.

Happy holidays and good luck, Bap!

Bap33 says

The only lasting negative I have is the fact that the interest rates are creeping up as I sit waiting. That kinda sucks.

To give you a bit of relief, I read an article this morning that stated interest rates actually went down today. I was trying to find the article for ya but it's burried somewhere now.

Merry Christmas to you too.

HAd I been able to lock when I started this process, I would have been at 3.75

I think I'll be lucky to stay under 4.5 when it's all said and done

underwriter is underwriting - everything completed.
next step is "move to close" (not sure of the correct verbage)
should be signing docs this week, maybe early next week.
Today I bet the loan broker $20 that some stupid assed request will be made by the underwriter that will hold up the process, will cause me to miss escrow closing time, and I will not get the house. He's pretty confident it will close with no sweat.

Stay tuned.

oh, and 4.5 is what the GFE had on it yesterday when I signed some stuff..

Bap33 says

Today I bet the loan broker $20 that some stupid assed request will be made by the underwriter that will hold up the process, will cause me to miss escrow closing time, and I will not get the house. He’s pretty confident it will close with no sweat.

Stay tuned.

Yes, yes, and YES but I still managed to Close on time. Well a day latter actually.
Although all was moving forward the whole time and I was putting money out I would never see again, on inspections and other appraisal fees. Nor if the deal fell flat, was I convinced I'd get "ALL" of my money back from other fees like Title fees, and Broker fees, and other deposit monies.

It was very stressful, and keeps the Home buyer, imprisoned in agony and suspense, trapping them from shopping other lenders for a better deal. In spite of the verbiage in the HUD addendum attached to the daily changing GFEs I got, that were all over the map. I wasn't even sure what my total closing nut would be. In spite of the "new laws" that was supposed to make lenders more forthcoming.

Ok, here we are. The loan docs are supposed to be in the lender agent office tomorrow. The escrow will have to stay open a couple of days. An extension was requested on Friday and no response yet, but the REagent and the Lender agent both asure me that the seller will not have any problem with waiting a couple of days for escrow to wrap up.

Had to come on here to get away from the political area! I find life is a little calmer when i avoid that stuff. That dang shooting pulled me back into the junk, but I'm all done with it now! lol

It is COLD this week.

To recap, my offer was accepted on 11/08/10
Stay tuned.

welp ... the lender did not send docs, they sent more requests for stuff we should have had requests for a month ago, or more.

This sucks all the ass.

Doubt we have enough time to satisfy these underwriters lists.

Not a fun process.

Sounds like it would be easier to just rob a bank and pay the seller with the bank's money directly.

Ok .... and so today the entire package/bundle/answer pile was turned into the east coast based lender for final underwriting.

Even if they did the impossible and got docs to me tomorrow, there is no way the thing closes in time. I have no idea how much more F-ed up the system can be.

I have spend $2,175 in fees, inspections, certifications and just plian F-ings.

The latest F-ing was having to pay the lender's appraiser to go-re-inspect a fence that was vandalized during this process. A fence that was ok when I made the offer, it was still ok when we went into contract, and then it got tore up so I bought the parts and repaired it to keep things moving, but they couldn't just go by the pictures we sent them. Oh, and put on new water heater quake straps -- all on my dime. Capped by another $200 right in the butt to get it re-appraised, even though value is not even an issue with the fence F-ed up!!!!!!! Arrgggg!!.

My hard-money idea looks soooo much better right now.

Thanks for the positive thoughts folks.

All issues have been addressed.
All questions have been answered.
All paper work is in.
The REpro is sending a bunch of proof for the seller/escrow to know we are all in at this point.
The downpayment sits ready.
The bank account is ready for the auto-withdraw to begin.
House insurance is set up.
The lender's exact words: "100% of the time the loan goes through from this point on."

Stay tuned.......

ok ..... tomorrow is Friday. Friday in the morning the NY based lender is to send the docs to title, and title is to send them to notary near here. Me and wife will be called by notary as soon as they hit her office tomorrow morning. Local lending agent is going to come too, incase of any issues, they are fixed on the spot.

After all docs are signed they will be nextday aired back to snowy east coast (they will not accept electronic data transfers --- odd huh?).

Monday they should fund and trigger the title/escrow completion.

All should be done by Wednesday (says local lender)
Trouble is the last extention runs out on Monday. We are 3 days tardy at best. I told the local lender broker to have the NY based lender call the seller directly and explain the time frame. Friggin idiots took for-ev-er.

So, what will happen this time? Seller going to say "times up!"? Or, are we in there?

Here is one thing that happened that you may not believe: I was asked by the NY lender to explain why my signiture did not match on every document, and then sign a document that said I had signed every document. Yes, that is the truth. I was asked to sign a doc to prove I had signed the other docs. My answer was "I did sign everything, and I signed most things 3 and 4 times by now, and my ability to write well goes away after the first 30 signitures" or some other smartassed answer. So, just to make a point, my local lender broker took a pic of me signing the doc that I was asked to sign to prove I had signed all the docs just to make double sure they had proof that I signed docs .. and he sent it to them. That was pretty funny.

Bap33 says

Here is one thing that happened that you may not believe: I was asked by the NY lender to explain why my signiture did not match on every document, and then sign a document that said I had signed every document.

These were only the loan documents right? Or did it include the purchase contract as well? I've been authorizing my agent to forge my signature for purchase contracts. Previously, he authorized me to forge HIS signature to write my own contracts.

But with that put aside, I'm glad all is working well.

um, I don't really know what docs they pertain to exactly, I just did as I was told.

today sucked all the ass. These idiots on the east coast did not send any docs until 3pm our time. friggin suck ass MFers. And so, nothing is completed until Monday.

On a side note, the docs they sent today indicate that they have sold the loan already, as I am having to re-sign up for some other company to remove funds from my bank account on auto-pay. So, it is my best guess that these MFers have been dragging ass to dely enough time, so they could sell the loan before they even make the actual loan. Just my guess, wht do you guys say?

We entered into contract on Nov 8th.
It is now Jan 28th.
Yea, I think these pukes sandbagged while they found a buyer.

you know ... you are 100% right - again. In my world, people that do a job as unproductive as these folks are normally unemployed. I know I could not hold my job if I operated like these people. I am sure you are in the same boat. This frustration zaps my spirit and drive much more than a bust-ass day of work ever has.

ok .... so, Saturday morning at 8ish my lending broker calls me and says that the final pile of papers have arrived. I told him I would be right there, and I was. Signed everything that was not signed on Firday night. Went by the CreditUnion and got the "cash to close" (up from $10+K at the begining to a new high of $14+K). And the entire package was sent over-night USPS on Saturday around 11ish.
So, I have spent $2K+ on inspections, appraisals, septic pumping, well testing, fees, and repairs. These costs were "flat" and not rated by house price.
And I just sent out $14K+ for escrow to close. Some of these costs are flat, some are based on loan amount. I'd say, from memory, it is about $5K in flat cost and $9K in loan based cost that are a percntage of the loan.
Anyways, I am into this deal a full $16K+.
Here in the valley there are not that many middle/working class buyers that are sitting on $16K, debt free, with 780 credit, so it is my suggestion that prices will still go down in the middle/upper-middle/non-rental market - OR - fees will be allowed to be included into FHA assistance loans to allow more buyers with less cash (same trouble that started this bubble).

Checked in today, and so far I have nothing more to do.

Anyways, I think the next two days tells us if we have chicken or feathers.

@ Bap33

I must confess this is one of your best posts if not the best!

closed and recorded on Thursday
started working on it on Friday
should be about 5 weeks of busting ass before wife and kids move in -- then i get to do the one we live in now, since it's a family owned rental.
Need to find a reasonable metal building for a shop.
Need to get back into shape ... friggin back is tight from just a few hours on work. I'm such a noodle armed pus-gut these days.

I'll keep you folks aware of the 203K draw process and how that goes.

Adios

What work are you going to do to it?

Congrations.
Finally closed, huh?

Looks like lots of work there. I assume you got some experiences fixing home though, don't push yourself too much, and take care of your back. Back pain sucks.

OK, now, can we expect "Bap's step by step guide to fixing home with pics" ? ;-)

Bap33 says

I’m such a noodle armed pus-gut these days.

Pretty funny description... congrats on the purchase.

@ToT, roof, flooring, painting, doors, jambs, casing, base, toilets, sink traps, undersink cabinet bottoms, new A/C, privacy/pool fence, sink fixtures, some outlet upgrades to GFI, plumb for gas at oven and dryer, removing all near-house landscape and lower near house grade, .... just little stuff too.

@seaside, thank you. Yep, closed. I have a card in my back pocket that says I used to be a capenter. Most of the stuff is under the 203K contractor bid. I'm just doing the extras that help things come together nice. As far as pics, I took a bunch of "before" pics, and even did a vid walkthrough on my wife's camera that's about 12 minutes long. I have no idea how to post such things on here, but I my be able to set something up on some hosting site (?). Anyways, I have tons of "before" pics. The "after" pics will be a couple months out.

@ellie, thanks. Getting old sucks.

One week after close:
New roof will be 100% done tomorrow
New HVAC and some duct modification all done.
New facia and re-hung some gutter.
Some new starter board (the plywood you see from under over-hang)
All base and doors removed
New jambs installed in a few spots, doing match doors everywhere else
Toilets removed
Removed fart fan covers, but left in fans until after painting and then replace.
Removed all HVAC duct registers.
Switch plates and plug covers removed
Removed the door chime off the wall ... first time I could remember taking one of these things apart.
Lights and fans removed
Window blinds removed
Walls repaird (one more coat of mud and some areas will be re-textured)
Pool temporary secruity fence done
Weeds mowed and then rotatilled
Some fence removed after wind blew it down
Removed some corny pravacy lattice that looks like it once surrounded a spa
masked off everything but windows and front door.
Ran gas line for stove and dryer
Removed some shrubs against house. Tons more to remove.

Next up:
Prep for paint inside.
Refinish butcher block top of island
New angle stops everywhere
May replace kitchen sink, but the 1/4 round tile on it is absolutly cherry, and I do not want to screw it up.
New light bars in bathrooms
Remove these super big, wall size mirrors in the master dressing room and replace them with skinny mirrors from the circus.
Remove the shrubs and set grade away from house
Need to either repair some windows or get inserts.

getting in the swing of things now. only bummer so far was making a pecker track on my new facia ... first 16# galvy I'd driven in a few years ... and it had to be in prime location. Me and my brother laughed a while over that one. I see it every time i walk by. lol

How much was new HVAC, did you do the roof your self?