Home Buying: Loan vs house /w damage

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SaintDude

Miss Deaf Texas++
Veteran XX
Evening folks. I'm talking to my realtor tomorrow but I figured I'd hit this place up also because I can get real answers here strangely enough sometimes.

My wife and I are giving serious thoughts about buying a HUD owned (read: foreclosure) home. Awesome neighborhood and house but it does need some work. It's in need of a new roof and fixes for some water damage in the master bathroom, both of which we can afford to do. This is one of the only homes we've looked at in the last several months that has gotten both of our attentions. It's currently selling for 75k less than it's last sale price from 3 years ago. We would not be able to live in this neighborhood any other way looking at other current listings. Anyway, here's the problem.

- It's HUD owned and being sold "As is"'.
- The bank we're working with is telling us that it probably won't pass pre-inspection due to the structural damage so they won't approve of the loan for that property.

So we can afford to do the fixes but we can't do it because we obviously don't own it yet. In order to own it we need to get the mortgage but they're saying 'fuck that' until it is fixed.

If this was any other seller we could negotiate a fix into the agreement but with this HUD thing in the way we're kinda fucked I have a feeling.

Any Twar home owners, lawyers or general know-it-alls have any suggestions getting around this predicament?
 
i don't want to sound like a dick but...

why don't you move into an area/house you can actually afford?
 
when I was a young boy I bought a bike for 20 bucks thinking i'd fix it up and flip it

ended up flipping it alright, into the dumpster

never went that route again
 
if you like being married I would stay far, far away from buying a house with structural damage and attempting to fix it
 
I finally sold my house last year and don't think I'll ever own one again. Apartment life is the life for me. If I have to move again for work, I don't want the burden of having to sell one.
 
You would think the bank who owns the thing would be more willing to help you out simply on the logic SOMEONE IS INTERESTED and it is a rare chance to get the thing off the inventory books and revenue in the form of a mortgage. But then again I don't run a bank so...
 
he said its a HUD owned home so it isn't a bank that owns it

if it was bank owned they would be more than happy to make him a loan if he's credit worthy
 
Feannag said:
You would think the bank who owns the thing would be more willing to help you out simply on the logic SOMEONE IS INTERESTED and it is a rare chance to get the thing off the inventory books and revenue in the form of a mortgage. But then again I don't run a bank so...
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Interesting
 
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SaintDude said:
Evening folks. I'm talking to my realtor tomorrow but I figured I'd hit this place up also because I can get real answers here strangely enough sometimes.

My wife and I are giving serious thoughts about buying a HUD owned (read: foreclosure) home. Awesome neighborhood and house but it does need some work. It's in need of a new roof and fixes for some water damage in the master bathroom, both of which we can afford to do. This is one of the only homes we've looked at in the last several months that has gotten both of our attentions. It's currently selling for 75k less than it's last sale price from 3 years ago. We would not be able to live in this neighborhood any other way looking at other current listings. Anyway, here's the problem.

- It's HUD owned and being sold "As is"'.
- The bank we're working with is telling us that it probably won't pass pre-inspection due to the structural damage so they won't approve of the loan for that property.

So we can afford to do the fixes but we can't do it because we obviously don't own it yet. In order to own it we need to get the mortgage but they're saying 'fuck that' until it is fixed.

If this was any other seller we could negotiate a fix into the agreement but with this HUD thing in the way we're kinda fucked I have a feeling.

Any Twar home owners, lawyers or general know-it-alls have any suggestions getting around this predicament?
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Get a 203k Loan, HUD homes are always sold AS-IS. Also, ask your realtor to provide 4-5 comps within 2-3 miles of HUD homes and ask him/her to show they discount they are accepting in that immediate area. HUD homes are not like other foreclosures, they generally take a certain percentage discount and if you can figure it out, you can make the best possible offer.
 
i hate to sound like ngfm

but have you ever seen holmes on homes

or holmes inspection

you're in a fucking nightmare
 
naptown said:
find a shady bribe-able appraiser and a different lender
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Already doing some research on different lenders. Appraiser for current lender is their own people so no bribing. QQ

CatKillingOwner said:
structural damage? new roof? water damage?

possible mold too.. good luck with that moneypit
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I've been in the house. The water damage is ceiling drywall only in the master bathroom and we were already thinking of redoing it anyway. There is zero mold smell at all either. The roof is just at it's lifes end and needs to be reshingled. Believe me I plan on having an inspection to see if this place has any other gotchas but so far it looks promising.

reZolut said:
i don't want to sound like a dick but...

why don't you move into an area/house you can actually afford?
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We have been. We have another two homes that are pretty much turn key we're looking at but we're not totally in love with. Like I said, this is the first one that has really gotten our attention. We would love to live in this area if we can get through the paperwork BS. Considering it's so undervalued we could put 20-30k in upgrades and still be way under the homes assessment value.
 
JustinCase said:
if you like being married I would stay far, far away from buying a house with structural damage and attempting to fix it
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The bank would consider it structural per appraisal. Redoing the shingles and redoing one bathroom isn't huge plus we'd stay in our apartment while the work was being done. We would want to retile the bathroom regardless btw. Believe me if the roof's actual structure needs to be redone or if there is termite damage or it had foundation issues I'd be out in a fucking heartbeat. FYI this is the extent of the damage.

2aks6.jpg
 
Snake~eyes said:
how bad is the damage? Shady appraiser would help. What bank owns it? Seller financing an option?
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See above for damage. It's HUD owned ... that's all I have. I'm assuming that means government owned? 0_o

Tigran said:
I finally sold my house last year and don't think I'll ever own one again. Apartment life is the life for me. If I have to move again for work, I don't want the burden of having to sell one.
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I've been in apartments my entire life. I've reached my limit of living under\over retards that have zero noise considerations for neighbors. Yes, you can always have noisy neighbors in a house environment but it's a far from from someone stomping over your head because they're a bunch of drunk college douches. Beyond that it's nice to have some home equity vs throwing money at a landlord that will never let you do things like put in new carpet or appliances or upgrade a heater to something efficient etc.
 
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