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-   -   Thinking of selling out of this big house and buying a forclosure. (http://www.diychatroom.com/f2/thinking-selling-out-big-house-buying-forclosure-162582/)

JEng 11-08-2012 10:50 AM

Thinking of selling out of this big house and buying a forclosure.
 
Up until yesterday the freedom of having a smaller home that we could make our own made me feel great!
I'm getting ahead of myself! I'm Jackie, and I'm new here! I found this site while looking at the difference between prefab and tile and DIY
showers


http://maps.google.com/maps/api/stat...00&sensor=true

They were rude and also told me a kitchen or bathroom would be 45-65k each. One house I looked at had a pool so I called to find out if they do inspections, they do, but she acted like I killed her cat or something and hung up on me. I wrote her number down.

Point being, my brother bought a house for 50k cash and everyone laughed at him. Him and his wife did the work and they even made their own kitchen cabinets. His taxes say its worth 150k, I don't say it to my husband but I like His better!!!! This is the second one Hes done, and he had me over helping with the first one everytime I was in town. If I use my home equity loan, do I have to use those goons who waste every cent or with the proper permits, and initial "up to code" fixes-can I have family or friends help me do this. I woul much rather accept a bid from one of them. Does the Bank and HUD care?
Any Texans here?????

LVDIY 11-08-2012 11:30 AM

Welcome!

What happened yesterday?

oodssoo 11-08-2012 11:38 AM

Don't quite understand your position about "small homes vs big homes" and what happened yesterday made you become a new member to this site?

When reading your statement, I thought an autobot had hacked into the site and posted some random post!

Please elaborate...

JEng 11-08-2012 11:42 AM

I edited above! I couldn't figure out how to reply! LOLZ!

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LVDIY 11-08-2012 11:53 AM

I just read your updated post, and I feel like I walked into the room in the middle of a conversation. I don't really understand exactly what you are in the middle of, and what you are trying to do?

angelatc 11-08-2012 11:57 AM

We just bought a foreclosure, but that doesn't make me an expert. While we wait for one of them to show up, I'll share the bits I learned.

HUD homes seem to be in the worst shape, compared to FNMA homes at least. Getting a mortgage for them can be tricky, because lenders aren't lending much right now, and getting a loan that includes enough to make repairs is fairly unlikely. (This might be specific to the region, though. YMMV) They also won't finance properties that are seriously damaged. A realtor could give you specifics, but here a bad roof and a non-working furnace would kill the deal. Some HUD homes come with a Repair AlLowance, but I'm not sure how that works as for getting the mortgage. (I do know that you don't get it if you pay cash.)

We looked at and bid on several HUD homes. Only 1 was move-in ready.

Some FNMA homes provide access to mortgages that allow for repairs.

If you take out a Home Equity loan in cash, I doubt they care how its spent. Call up the company and ask.

JEng 11-08-2012 12:00 PM

Ok, big house is spooky and my daughter still lives. We don't need the AC bills. The taxes are so high it makes me sick, and we could be doing so much else with the money. It's lonely too because my neighbors are snobby and my parents didn't raise me that way.

The contractors in the books charge about 50k a bathroom and for a kitchen, so for 150k for 2 baths and a kitchen. No way!!!! My brother did it for less and I know I can get someone to help me tear it out and DIY or use a friend on a budget....

That's what I'm saying, I edited it above but if that wasn't clear I hope this helps cause 150k+20kto get to code+10k for all else

180k+137k
317k
This is not the way to fix up a foreclosure. That's why I'm here. I'm gonna need to get an education.

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angelatc 11-08-2012 12:08 PM

If you can pay cash and/or get financing, you can do the work yourself. You still have to pull permits and such, but you can do that as a homeowner.

Even with jobs that require a pro, you can save a lot of money by doing as much prep work as possible.

JEng 11-08-2012 12:19 PM

I'm working with a forclosure expert in finding our home. They have a special financing available that has made buying Huds very lucrative if the home is eligible and gives lower interest rates. We have foreclosures (selling every month in this county) and there are so many it's unbelievable because we have an incredible job market. It's because of the ARM loans. These are predatory but serve their purpose. I'm sure investors who buy tons of properties have no qualms about these because their flips aren't on the market long.

Regardless, I'm in 4000 sf right now. We will stay if we have to, but we won't ever be able to put in a sunroom or pool. No trips. We just have one life. My mom suffered with Cancer in this house, and I took care of her. She is dead now, and me and my daughter are just sad. We can't move on.

That's hard too.

I just want a house have this size, to make our own. This is not something we have ever attached to.

My friend did this same thing last year and it can't be impossible...

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angelatc 11-08-2012 12:24 PM

Quote:

Originally Posted by JEng (Post 1047385)

Regardless, I'm in 4000 sf right now. We will stay if we have to, but we won't ever be able to put in a sunroom or pool. No trips. We just have one life. My mom suffered with Cancer in this house, and I took care of her. She is dead now, and me and my daughter are just sad. We can't move on.

That's hard too.

I just want a house have this size, to make our own. This is not something we have ever attached to.

My friend did this same thing last year and it can't be impossible...

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We just did the same thing. Gave up 3600 sf for a 1700 sf foreclosure. If I had more money, there are two more homes that I'd buy tomorrow too.

LVDIY 11-08-2012 12:25 PM

OK, so if I understand you correctly, you live in a big spooky house that you want to sell, and instead buy a small foreclosure that you can fix up?

There are ways to fix up a kitchen and a bathroom for less than 50k each, it all depends on what your starting point is. If someone gave you a general 50k quote, they probably gave you the average price of a full teardown and remodeling.

There are ways to do it cheaper, but it all depends on what your starting point is. Just because it's a foreclosure doesn't mean everything is in bad shape and has to be replaced.

A foreclosure might not necessarily be the best deal either, you might be able to find a non foreclosure home that suits your needs without having to take on heavy remodeling.

It all depends on your local market and what you have a stomach for. I would start by finding a good local realtor that can help you navigate different options.

JEng 11-08-2012 12:33 PM

Quote:

Originally Posted by oodssoo
Don't quite understand your position about "small homes vs big homes" and what happened yesterday made you become a new member to this site?

When reading your statement, I thought an autobot had hacked into the site and posted some random post!

Please elaborate...

Well it makes sense that u would say that, I was having trouble getting it to just type out the words and even my edit doesn't make very much sense. Truthfully, I don't know how to put on pictures either, and I just learned to post.
It's cool if u like big houses, but I'm just sick of opening my electric bill. Plus, my kid says paranormal society wants to film our house for free. It get old;) I hope we shall be friends!

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JEng 11-08-2012 01:04 PM

Exactly! But I really want to shop for the forclosure items on a budget. My brother taught me where to go and how to buy. He went to Auctions every Friday and got the most amazing things. Carpentry is in my blood so buying a few saws and sanders would be a good investment. I also painted 75% of or home but the high up I couldn't because I didn't have the tall think they stand on. If I can learn tile, that's a huge asset. I think if I can use a saw to build things, I can probably learn tile.
My concerns are tear downs.
Got to have copper wiring.
My dad is a great plumber and so is my brother.
Brother can change out toilet in 30 minutes including drives to store. Gotta Learn that if just for tiling.
You can install ur own floor and save thousands if its not carpet.

Seriously, this is nothing compared to what I'm going to need to know.

Any tips along the way will be helpful.

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angelatc 11-08-2012 01:41 PM

Quote:

Originally Posted by JEng (Post 1047420)
Exactly! But I really want to shop for the forclosure items on a budget. My brother taught me where to go and how to buy. He went to Auctions every Friday and got the most amazing things. Carpentry is in my blood so buying a few saws and sanders would be a good investment. I also painted 75% of or home but the high up I couldn't because I didn't have the tall think they stand on. If I can learn tile, that's a huge asset. I think if I can use a saw to build things, I can probably learn tile.
My concerns are tear downs.
Got to have copper wiring.
My dad is a great plumber and so is my brother.
Brother can change out toilet in 30 minutes including drives to store. Gotta Learn that if just for tiling.
You can install ur own floor and save thousands if its not carpet.

Seriously, this is nothing compared to what I'm going to need to know.

Any tips along the way will be helpful.

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You can rent scaffolds to paint up high. You can rent most speciality tools, like tile cutters, too.

We are expanding the kitchen, and we found cabinets that match those that are already there on Craigslist. So we're designing the kitchen around the cabinets, instead of vice-versa, but it saved us thousands of dollars and will work just fine.

I want to remodel the bath extensively, hubby is balking, so I'm holding off on the tile and such there.

user1007 11-08-2012 02:41 PM

Well, I definitely think you need a real estate agent you like to help you find a smaller home more suited to you, in foreclosure or as mentioned perhaps not. You will need someone to help you out of the home you are in or even if it is paid for you will be stuck with the taxes.

Have you factored in how much you will need to sink into your place to make it saleable at a fair price? I think in addition to a good real estate person you should line up an independent inspector to go through your current place and any place you find to let you know what you are in for. Only then can you start putting reasonable numbers in terms of money and time to tasks at hand.

As for tossing around numbers of what kitchens or baths should cost? There are just too many variables and it would be irresponsible for anyone from afar to offer you advice.

I don't think closing your eyes and fingering an ad in the yellow pages is the way to find a contractor or remodeler either. You should ask around for names, take a look at some work done, and thoroughly check references. And way up front, make sure you understand any scheduling constraints.

I think a trip to your building and planning department to explore what permits you will need and what work you are allowed to do yourself will save you a lot of anguish and anxt. And make sure you understand if you are walking into any sort of historical landmark or homeowner association situations with restraints on what you can and cannot do--especially to the exterior. In more and more places, because people got overly creative, they need sign-off from a licensed plumber and electrician for new work. Most, unless they know and trust your work, will not sign-off unless they do the work and I am sure you can understand why.

I usually worked with mortgage and construction loan brokers for projects of mine but at least a discussion of what you are thinking with your bank early on seems in order. I would encourage you to make sure you have cash enough on hand for payments on perhaps two mortgages until your current place sells and at the same time you are going to need chunks of $$$ for improvements/fixes.

And in deciding whether friends and relatives can help you pull this off be honest about the time they have to commit and on what schedule. Can they spend a couple months working on either of your places or will they only be available nights and weekends?

Good luck. Sadly there are certainly some good foreclosure and desperation sales properties out there. Keep an eye on the ratio of such in your new nieghborhood and to how many are being bought as rentals.

4,000sf is a lot of house and if it is old and poorly insulated I certainly sympathize with utility bill sticker shock.


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