Bank foreclosures

[DeeVeeEight]

I am looking to buy a house and have come across one or two I really like. I put an offer in on one only to find out that it is owned by a bank (foreclosure). The bank has refused several FHA offers on this house (one at full price).
What is the problem with these banks? Do they not want to sell the properties that they are sitting on? Why do they drag their feet? I would think that an empty house with no mortgage being paid on it is a liability to the bank. Something just doesn't add up here.....
The economy is in a shambles, we need to get some cash flowing and here the banks are putting on the brakes, stopping deals from happening..... WTF????

Does anyone have an explanation for this? :amazed:

 

[mrvette]

Yeh, they ain't holding the damn mortgage for ANYONE, and they don't have anyone to SELL it to....fanny/freddie/FHA...all them outta business....

:cussing:

If'n you name was wall st. biggie, you think for a microsecond you going to invest in the MORTGAGE market??

no no and FUCK no, your boss fire your ass so damn quick....:smash:

 

[moose5.7]

Why dont you e-mail the white house and ask them to give ya a bailout.:banghead:

 

[DeeVeeEight]

I just found out from my realtor that the reason the bank refused our offer is because we have an FHA loan. WTF???? Now what do I do? :suicide: What's wrong with an FHA loan? :bomb:

 

[mrvette]

I just found out from my realtor that the reason the bank refused our offer is because we have an FHA loan. WTF???? Now what do I do? :suicide: What's wrong with an FHA loan? :bomb:

FHA is not in business much anymore, second off that implies 100% financing and in a free fall RE market these daze, bank don't CARE....

put 20% and try again....

 

[DeeVeeEight]

Ask you guys a serious question....:hunter:

Oh well. Here's a serious answer to my dilemma....

I contacted my Bro in Law who knows about real estate and what the banks want - he has been in the appraisal biz for decades, here's the scoop.

The property I am interested in has some condition issues like cracked and peeling paint - it does not qualify for FHA funding for this reason. If I am able to obtain "conventional" funds I can probably buy the property. Because he is my Bro in Law he is making some calls tomorrow regarding mortgage options and we will see what we can do.

 

[JPhil]

Contact the local building department and research the history of the house--if it perchance was busted for meth or dope, or has had 'illegal' modifications to it--remodeling, etc with no building permits---or ("Peeling paint"??)fucking 'asbestos', 'mold' or 'lead paint' ""issues"" (if it's a house older than a couple decades)---even if it has a only a finished basement or a detached garage right up against the property line, ask to see the permits or records for that. That kind of thing can suck you into a maelstrom of bureaucrtic bullshit you'll never overcome & may well bankrupt you. No matter what kind of neighborhood it's in. (The meth houses are usually in lower class neighborhoods, but the marijuana farm houses are more typically in upper-scale neighborhoods---where you just wouldn't think it would happen here!)
The banks are covering their asses like teenage virgins abandoned at a biker party, and even more scared, right now.
That info should be public information, we do it more & more often.....And if the building department clams up and zips their lip, then try inquiring at the local police department & see what you get. If they clam up, then walk away, just walk away.

& if your bro-in-law is trustworthy, trust him more than any bull shit you'll get here. But don't be afraid to just say "Nope, forget it" if it doesn't feel right because there will be others. Just like buying a 'Vette....there will always be another one come along.

I know, this has nothing to do with financing, but it can sure fuck up a deal, &/or make you regret it.

John

 

[010752]

Banks can't sell your Fha loan very easily. Mortgage investment money (the groups that buy the mortgages) is very strick these days. Sort of like buying GM stock, not many people are taking the risk.

To have any bargaining power these days, conventional, the more than 20% down the better and hopefully your score is 750 or so.
And the only way a bank can come out on one of their own foreclosures is to originate the loan themselves and that means you bend over for their own special fees etc.

Look at short sales too.

And Obama has played hell with your brother in law's appraissal business too. Banks now pretty well have the final say on that crap too.

A lot of little tidbits get passed that no one ever hears about.

 

[mrvette]

Ask you guys a serious question....:hunter:

Oh well. Here's a serious answer to my dilemma....

I contacted my Bro in Law who knows about real estate and what the banks want - he has been in the appraisal biz for decades, here's the scoop.

The property I am interested in has some condition issues like cracked and peeling paint - it does not qualify for FHA funding for this reason. If I am able to obtain "conventional" funds I can probably buy the property. Because he is my Bro in Law he is making some calls tomorrow regarding mortgage options and we will see what we can do.

That is the 'official' FHA line, but every house in existence has cracked and peeling paint, so we know that is bullshit.....

maybe as well say that house has a ant or bug in it, or that terror of terror it has ASBESTOS or LEAD....as any house does....or terror of terrors, blown in insulation, or FIBERGLASS....jeez, ever vette owner going to DIE....

the reason I said above is much closer to the truth....I bought FHA once, decades ago, and there is no such excuse then....

:quote:

edit....I see Jphil has already covered what I echo'd......

A house up the street here, was subject to a full blown SWAT raid some years ago, P/O got his ass in troubles, lost his business and house because of crack and his wife dragging him that direction.....damn shame, we watched the dealing and decline on him over some years here, WE, being my neighbors and most of them are retired .mil......

Took almost a year for that bank to resell that house....then the second owner bailed in a business failure, and supposed divorce....chicken/egg on that one......

then it was vacant for about 2 years, nice house too, shame....people are idiots....the present owners are idiots too, cut a bunch of trees down, and left the treetrunks and shit all over the front yard....I thinking of calling the county on them.....I should take a pix of the place.....think I will.....