REAL ESTATE Repairs before closing?

[Carny]

it is a manufactured home (essentially a double wide trailer)

They can be a cheap alternative, but keep in mind they go down in value and are generally a bad investment.

 

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[SteveO]

You are actually making this sound easier all the time. There is no foundation problem? Perhaps it is just set on jacks or blocks? You don't need an FHA loan. I doubt that you will need to even "fix" this. My dad has a manufactured house that is on stands. My sister has two of them. All of them have house loans on them. I think they paid a percentage point higher than the going rate but they definitely have loans on them. I will ask them tomorrow where they found the loans. I recall them needing to shop a bit.

You could also try ALL of the local banks.

 

[SteveO]

They can be a cheap alternative, but keep in mind they go down in value and are generally a bad investment.

The fact that this place is on acreage may be a difference maker.

 

[CarrieW]

SLOW DOWN! You are letting emotions dictate your actions.

The next few comments can easily be taken as me being a jerk. I'm not. Read these as a concerned friend.




I understand your kids are excited but if you let them make financial decisions (especially as important as this) you'll end up very broke and they will too. Your husband is your partner and should be helping you in the process.




I could type pages about this comment, but I'll try to be concise. First, if a bank that makes money by lending money won't lend money on a property there is probably a very good reason. If they did loan you money on a house that fell apart in a short time, did they "help" you?

Banks or any other lender aren't into "helping". They are out for a profit. If you or your family thinks that unless you get help you are screwed then you need to take a step back and think about a few things. Why do you feel like you need help? Why can't you just get what you want? If you don't have and can't get what you want, what steps are you taking to change that?



This is starting to touch on spirituality/religion and I don't want to go there, but do you believe that there is one perfect house for specifically for you? Be very careful with this. If you think this is the one house that you are supposed to be in you will ignore every single warning and red flag that comes up. I think it's much more important to provide for your family. That's hard to do if you buy too much house or one with more problems than you can handle. If you get a house that you can't afford it will be a curse, not a blessing.

I do not think you are being a jerk everything you said makes sense.. I will go one by one...

the kids definitely do not make any decisions... they are involved in the process of looking at properties and get a vote on if they like it or not(taken with a grain of salt) they are excited because we have been in the process of handling some things that needed to be taken care of before we were in a position to buy. it has been a long few years waiting for this moment to finally arrive

my husband is my partner in life... not so much a great business partner... he allows me to handle things and his only help me asking me questions and giving opinions when I ask for it... we have very much divided the responsibilities and other then times like these when I have to explain details to him because its about our home(rather then an investment) he does his things to take care of us and I do mine... he has the shorter list but I definitely like my jobs and wouldn't trust him to do anything I handle right or wrong it works for us...

the only good reason the banks wont loan on the money is because they have specific financial instruments meant for certain situations, they are the 99% reading black and white rules and have no authority to change the terms of something like an fha loan, just because something looks like an ugly duckling on paper doesn't mean It isn't really a beautiful swan there is pleanty of money to be made here. but only if it fits into their little square box...

I am definitely not the one in the scenario saying were screwed and no one wants to help us, that would be my hubs... all I can do is explain the rational behind why they didn't accept our full offer bid with the financing we had and explain that there are other options while I try to figure it out... I don't need help from a bank. help is what friends and family do, what I is need someone whos business model fits the loan I need to get into the property. apparently not so easy to come by... when I say were screwed is when I have nothing more to try

we will have no issues affording any financing we can get on this property... even hard money. we are looking at properties that will cut our housing payment in half... we will never be house poor or be in a position to lose another property again... we have been in our current rental for over 6 yrs paying double what a bank loan on this property would be... and even if we used hard money it would be around the same payment we already make

and to sum it up, I do not know if this is the perfect house we are supposed to end up with... I do like it. I can see us living there. will I cry and mourn if we don't get it... nope! theres actually a house sitting on an acre that we already looked at that I personally love but the numbers on this deal are just too good to not try to get it worked out... I just have confidence in the fact that things happen for a reason and I never regret things I do... I make the best decisions with the information I have (or can gather) and then if it doesn't work out I move on... and figure out if the next place is good enough for me to pursue...

this was basically a crazy situation that I stumbled into. if it works out great I will fish out my back door in my lake on a nice house and beautiful lot for an awesome price... if not I will still have a place to live and will make the very best out of wherever we end up.... I am good like that. it doesn't take much to make me happy

 

[Carny]

The fact that this place is on acreage may be a difference maker.

Maybe. More likely it just clouds the issue. The land value will likely go up. The value of the mobile WILL go down. The net effect is hard to predict.

In 15 years the house itself will be worth much less than it is now.

 

[CarrieW]

that is only true if it is not transferred to real property... it isn't an actual trailer(trailers have perm axles wheels and a tounge so it can be hitched up and moved to another location...) its a manufactured home installed and left there...
mobile homes have not been built since 1976... personal property depreciates... once its converted to real property and the title is surrendered it does not diminish as a personal property trailer on leased land... on non perm location you pay dmv title value tax... once it real property you pay county property tax... it only depreciates if its not maintained properly or the market goes down...

5 yrs ago I could have had my pick of bank loans for this house... even companies like greentree whose whole model was this market stopped doing it and now only provide insurance to dealer sold and financed homes...

I could get a bunch of loans to put up a brand new modular... but none for an existing that I have heard of or found that are not fha... I would do things I am not proud to admit to find a straight up lender...

 

[CarrieW]

double

 

[CashFlowDepot]

Sucks that it is bank owned. that really limits your options and it is why I do not buy bank owned houses.

check in to the FHA 203K loans.
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou

With the new Dodd-Frank rules, you will not find a private lender/hard money lender who will put up the money for an owner occupied houses. It is WAY toooo risky for them.

 

[CarrieW]

ok... so I spent all morning getting turned down by brokers... only to find a wonderful guy named David, who couldn't personally help me, but gave me the most awesome lead!

I knew about 203k loans... it usually has eligibility on the sites. it wasn't there so I didn't think about it. as far as I knew they were only for stick builts...

well there are not very many lenders in the country that do them on manufactured homes... I was given the keys to the kingdom! He put me in touch with a 203k broker who does manufactured!!!

that 203k broker is speaking to his underwriter at the lender right now to make sure the foundation is allowed to be repaired under the 203k I am waiting for the response

I will post back soon!

 

[SteveO]

I did talk to my sister about her experiences. She said that there are companies that specialize in manufactured home financing. A google search on "manufactured home financing" turned up some places. I did not go to any of the links.

She did say that getting the home "permanently affixed" will help with the value and the financing. That is up to local codes. Have you checked the codes in the area? Is that why you need to do the foundation work? She seemed to think that properties outside of the cities have less codes to deal with and may have an easier time.

If you haven't done so already, find out if the place is permanently affixed or whether it can be.

Keep calling lenders. Time is running low....

 

[AroundTheWorld]

Keep calling lenders. Time is running low....

What he said! Don't just wait for this one to get back to you.... find 3 or 4 promising leads...

 

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[SteveO]

One other thing. My sister said that having the home permanently affixed will allow for easier financing and a better rate. But, it does not exclude you from getting financing. You should be able to find lenders that will consider it.

 

[CarrieW]

its installed to county codes just not hud/fha ones... they have a certification of permanent location on the home...it is attached to the deed of the property and cannot be moved. it is permanently installed just not on a hud approved foundation... only time it is an issue is when trying to get financing... hopefully the 203k lender allows for foundations...

there are a lot of lenders who will do manufactured homes...brand new ones... not as many for existing ones. I have been scouring google searches for every term I can think since Friday night I went thru the mobile home financing lenders back last summer... we were trying to purchase a existing manufactured that needed NO WORK. It had been completely redone top to bottom that year... no one would touch it... I can buy brand new ones with financing all day long... supposedly a few years back (during the market crash I assume) lenders discontinued most of the programs that allowed for existing manufactured homes... just like the dodd frank crap.. 2 yrs ago I could have gotten a private money lender on owner occupied. not so much anymore...

 

[SteveO]

Sounds like you are running low on options. Have you called all the local banks?

 

[CarrieW]

What he said! Don't just wait for this one to get back to you.... find 3 or 4 promising leads...

lol I am trying! I have spoken to a half dozen more people while waiting... it took me 4 days to find one promising lead. I am working on it!

I got a contact from one call who let me to 6 more contacts who none could help but referred me to another broker who maybe able to help... my husband is actually helping hes been dealing with finding masonry contractors all day

 

[CarrieW]

I have called my personal local bank. I was also told to call the local credit union. that is my next step after this broker... I was told that credit unions have less strict guidelines on properties...

 

[CarrieW]

well local credit union will do it... they do not care about the foundation... the catch is they will only loan 75% of purchase.

still waiting for the 203k loan guy, I am sure hes still waiting on the underwriter for the lender...

so if the 203k guy falls thru I need to figure out where to come up with 16-17k fast LOL

hey at least I found a loan! LOL

 

[SteveO]

I went with an incorrect assumption that you had money for a down payment. You were talking about putting thousands into a new foundation which you will not need to do with this loan. The majority of the loans you were talking about would require 20-30% down.

I hope you have this money in the bank or have someone that can gift it to you. Otherwise you may have more challenges to come.

Congratulations on locating a lending source!

 

[CarrieW]

I have the around 10k I can get in cash... what I have plus what I know for certain I can borrow/gifted.

 

[CarrieW]

well the fat lady is warming up her pipes...

I have spoken to more people than I can count... I heard back from the 203k guy. not so good news. they will repair an existing foundation but not modify or change one... they changed the regulations just over a month ago. not wanting to just take one answer I called 5 other 203k lenders and asked about foundation repairs without mentioning it was a manufactured home... they verified that he was correct.

I can get a contruction loan possibly but the min down for this deal is 24k that is likely out of my reach. and more then the 17k the credit union wants.

so it appears I have only 2 options. (I hate even typing that) I can find a way to get my hands on 15k to do the credit union close or make the repairs before closing(blah) or

wait for it to go open to investors and hope I can win the bid without too much competition...

so the real question becomes 15k for the close(Id rather put it into the loan then the property) or get an investment deal together...(will an investor provide proof of funds if presented before its under contract say up to a specific price)??? getting an investment deal together risks me losing the property to another investor.

trying to come up with 15k will be very difficult for me since I cant find hard money

can anyone think of anything I haven't tried? another direction to look? anything?

thanks to everyone who has taken their time to try to help I hope someone else got knowledge out of this besides me...

even if we don't end up with this place it was a very challenging and fun project to attempt and I really know more now about this crap then anyone wants to. LOL I will definitely have use for this information in the future

 

[SteveO]

I wonder if you are confused about the investor route. Are you suggesting that you find an investor that will put up all the money for you? I thought you were initially looking at hard money which would require you to have a down payment as well. I don't know how to get into this deal without 20-30% of your skin into the game.

Unless someone else has ideas, I think you may need to go the standard route for a house with the low-down type of financing available.

 

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[CarrieW]

what I was thinking is going the hard money route as an investment...(since it cant be oo) buy as an llc or whatever with the hard money fix it rent it to ourselves for a year then buy it for slightly more from our llc and pay off the hard money...

it was a thought idk if it is possible I would have to sit and do due diligence on that scenario...

I agree totally and I am about to just go and put in an offer on the white house... LOL my kids love that I call it that its a home that we saw that needs ALOT of updating but I really like the property a lot and I would love it there with the price of the place and the loan we have we can rehab it and have everything be new...

we drove past it a few nights ago and all the flowers are in bloom and it smelled heavenly

I wish it had the water like 222 does...

but again I know wherever we end up its where we are supposed to be

 

[DreamPursuit]

it is a manufactured home (essentially a double wide trailer) that they build in 2 halfs and then drive to the lot and install it... on install they remove the axels wheels and tounge.

it is considered personal title property until it the title is surrendered and you file a cpl (certified perm location) with the county and the title is void and the home then becomes attached to the deed and conveyed with any sales...

there are many kinds of foundations that can be done... from what you would see under a mobile home with wheels (some cement blocks and jacks) to footers with blocks on them and skiring around it , to footers buried and a crawl space masonry foundation perimeter wall and then the house is attached to that permanently . or a slab.

what is under it now is most likely footers with blocks or just blocks and a vinyl skirt... I have not been under it yet. all I know is that for sure the skirting auto fails. it has to be masonry... obviously footers and a crawl space is more cost effective then an entire slab.

basically someone bought the land with a older actual mobile home on it. went and replaced the trailer got it deeded to the land then lost the land to foreclosure... did the cheapest install which is for a mobile and not perm like fha requires...

edit to add... theres nothing wrong with the foundation that's there except its not up to the fha/hud code for financing... if it was a dealer finance the difference in the cost from what they did to hud/fha code is about 7-10k

I thought the home was sinking when you mentioned foundation issues.

Usually for HUD/ FHA to finance a mobile/ manufactured home in addition to having the tongue and axles removed it's going to need the following:

• a masonry skirt around the perimeter with a footer
• footers under the block piers
• the block piers need to be covered on all sides with concrete to make them one continuous piece. (Shear walled)

 

[CarrieW]

I thought the home was sinking when you mentioned foundation issues.

Usually for HUD/ FHA to finance a mobile/ manufactured home in addition to having the tongue and axles removed it's going to need the following:

• a masonry skirt around the perimeter with a footer
• footers under the block piers
• the block piers need to be covered on all sides with concrete to make them one continuous piece.

yes this is what I was going to have done...

 

[Olympus]

I feel your pain. I closed on my house last year, and it took nearly 4 months to close on the loan. 4 MONTHS. It wasn't a bank owned home or anything. Just a regular home loan. I had to go through several "loan officers and loan specialists" with my lending company... I called up there probably twice a day for 2 months straight, but persistence finally paid off in the end. I think I was talking to some of the VP's of CapitalOne by the end. The banks were/are completely ridiculous about their standards. I was going to mention some of the items above but looks like I'm late to the party.

Good luck! Like you said, if it's meant to be, it will.

 

[SteveO]

I could have saved us numerous posts if I would have known that there was no money for down-payment. A hard-money loan usually requires more money down than a standard bank loan. You would have still needed a down-payment regardless.

Bum deal. Live and learn...

Good luck in your search.

 

[CarrieW]

the last lady I spoke with at wells fargo was astounded... she said omg I am so sorry I cant believe I cant help you... if I were you Id be in tears... LOL I mean yea I like the house but I am not gonna cry over it

 

[CarrieW]

just received a surprise return phone call from someone... they may have a financing option for me... I will know either this evening or tomorrow morning... LOL I am not holding my breath... but he came very highly recommended to me from a friend in the business.

He didn't seem phased by any of the story, said he would be very surprised if he cant get it done... even if he cant go thru conventional means he said he has other options available to him

we will see

 

[CarrieW]

ok so the president of his bank has requested I go out and take pictures under the property so they can see exactly whats under there.. supposedly its to figure out if we can go fha or a different route... the conclusion they came up with is that the 203k loan will work but they want to see what is under it to see if the foundation needs to be changed or stay as is...

heres a link to the property pictures I have I will post the pics of under once I get them... idk about you guys but I am dying to know whats really under it LOL

http://s1054.photobucket.com/user/carrie_weber1/library/?view=recent&page=1

I will keep everyone updated!

thanks guys

 

[CarrieW]

I added the pics from under the house to that album