Short sale?

[wolfie]

A lot of this isn't going to involve you. The bank wants to recoup as much money as they can. Right now the other couple are obligated to pay them that money, and when you buy the house you will have a new contract with a new price. So the only way the bank is going to get the missing money is by going after that couple. So the couple will need to provide a bunch of information on why the bank should be willing to just let them walk away from the debt. You shouldn't need to provide more then you would if this was a normal sale - but you might need to provide it more often since paperwork getting lost seems like it happens a lot in these cases.

[AfleetAlex]

Thanks for that; I'll be prepared to supply paperwork a couple of times if need be. 

This is the first house I've ever purchased, so I'm learning as I go!

[Piratelvr1121]

My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.

It is absurd.  I joked with her these people must get their house hunting tips from "House Hunters" where I've seen people pass up places that could be the home of their dreams "If it didn't have that 80's wallpaper!" Heck our house had Spirit of 76 wallpaper and we primed and painted right over that. 

[otterwoman]

My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.

It is absurd.  I joked with her these people must get their house hunting tips from "House Hunters" where I've seen people pass up places that could be the home of their dreams "If it didn't have that 80's wallpaper!" Heck our house had Spirit of 76 wallpaper and we primed and painted right over that.

It may be that these people are looking at houses that are at the very top of their price range, so they have no wiggle room for paint and new floors. That is their failing; I would set aside money for upgrades and such. Their real estate agent could be guiding them to these too expensive homes. Or they might not have the time to do renovations.

[Piratelvr1121]

That is too bad, as the fun *sorta* of home owning is that the work never seems to stop! We still haven't done everything with this house that we'd like to.  I want to paint my middle son's room, the covering over of the 70's wallpaper in the living room took us 8 months to get done and there's still some in the hallways, office and stairwell that I'd like to cover up and we've been here 3 years.

Oh and the carpet in our living room is stained, pulling apart, the carpet in the master bedroom is a bright rosy pink, while the other two bedrooms have carpet that have some lovely 70's shades of harvest gold and avocado. One of these days I'll talk DH into using some of our tax $ on redoing all the carpet in those rooms, once we have other bills paid off.  He wants to redo the kitchen, but I won't let him, cause I love it.

The house has great bones though, and is in a great location (across from ice cream store, less than a block from the pediatrician who will do stitches and casts so you don't have to go to the ER.  Though we haven't had to do that yet. *knocking on wood, spitting and turning in circles*

[JenJay]

My friend who's doing a short sale has been having trouble trying to sell her house and says people come in and complain about the color of the walls (um, that can be changed, folks) or the carpet (which is clean, we've been to their house many times and it's very well kept) which could also be changed.

That ridiculous.

I look at the big picture like location, does it have "good bones," etc. Walls and floors can be changed.

It is absurd.  I joked with her these people must get their house hunting tips from "House Hunters" where I've seen people pass up places that could be the home of their dreams "If it didn't have that 80's wallpaper!" Heck our house had Spirit of 76 wallpaper and we primed and painted right over that.

It was noted in our listing that one of the features of the house was that the master bed and bath were on the main floor and the other 3 bedrooms were upstairs. This one couple came to see it and the lady whined constantly about the master being downstairs. Hello? Did you not read the listing? She also wanted us to pay to replace ALL of the carpet throughout the entire house because we have cats. Do our cats pee on the carpet? No. Is she allergic to cats? No. She simply doesn't like cats and didn't think she should be subjected to carpets where cats have been. Ever.

(Normally the seller is gone when a prospective buyer comes to see a house. In this case we were literally in the middle of packing for the move and asked if she could wait a day so it would be vacant but she insisted she had to see the house right then. She complained that it was hard to get a "feel" for the house with so many boxes everywhere. LOL)

[AfleetAlex]

I'm very much looking forward to painting, picking out my own carpeting, getting furniture that was not a hand-me-down (nothing wrong with that, but I'm looking forward to choosing my own style). That's part of the fun!

I've already planned out what I'm doing in many of the rooms in the house I don't own yet. 

[DavidH]

The only advice I can offer is about buying a house needing work.  Where I am, many people don't want to deal with that, so you can get some great deals, but you still have to be able to do the work.

Doing work often requires cash, so make sure you'll have enough after buying the house to pay for it.  Although the bank may not be willing to do repairs, an inspection to help you identify what will need to be done can be useful to help you make a decision on how much to offer.  It's also helpful to divide work into needs to be done now (like fix a leaking roof) and would be nice to have done (like changing a paint color you don't like or remodeling a functional but ugly kitchen).  Finally, if you decide to take on a house needing work, be realistic about not only the budget, but the time you need to invest. Just because you can pay the carpenter doesn't mean you have time to be home to let them in and all of that kind of thing. 

[MommyPenguin]

I know that I *should* look at the bones of the house, myself, but I'm not sure I'll be able to do that next time.  The house we're currently living in supposedly has good bones.  However, the work is taking forever.  Granted, my husband is working on his thesis at the same time.  But we've been using the bathtub to wash our hands for over a year because there's no sink.  In the one bathroom.  The other bathroom has nothing at all... no toilet or sink, no tile floor, etc.  I'm just really, really tired living in a home that is under renovation.  Our next house needs to be completely finished, or at least only need very small, quick repairs.  No "needs TLC" house for me!  And we'll only be there 4 years, so it's not like I can figure on getting the house how we want it "someday."  (I wouldn't count things like painting and carpet, which are quick short-term fixes, in that.  I'm thinking more like a bathroom needing retiling, a kitchen needing new cabinets, etc.)

[jaxsue]

I know that I *should* look at the bones of the house, myself, but I'm not sure I'll be able to do that next time.  The house we're currently living in supposedly has good bones.  However, the work is taking forever.  Granted, my husband is working on his thesis at the same time.  But we've been using the bathtub to wash our hands for over a year because there's no sink.  In the one bathroom.  The other bathroom has nothing at all... no toilet or sink, no tile floor, etc.  I'm just really, really tired living in a home that is under renovation.  Our next house needs to be completely finished, or at least only need very small, quick repairs.  No "needs TLC" house for me!  And we'll only be there 4 years, so it's not like I can figure on getting the house how we want it "someday."  (I wouldn't count things like painting and carpet, which are quick short-term fixes, in that.  I'm thinking more like a bathroom needing retiling, a kitchen needing new cabinets, etc.)

My definition of "good bones" means that "needs TLC" is not part of the package. New paint/ripping up carpeting is no big deal. Having to gut the house, big deal. YMMV.

I bought my mid-century house 1.5 yrs ago. I love its vibes. There is a lot of original stuff that I like, and except for the kitchen it was never remuddled (term I use for ugly redos).

I would go crazy living in limbo while rooms remained unfinished.

[AfleetAlex]

The house I'm looking at appears to have good bones and only needs some minor repairs and cosmetic changes in the short term, so I've budgeted in having the hardwood floors refinished and carpeting and painting/wallpaper removal done. The roof looks good too. Obviously I'm having a home inspection, pest inspection and radon inspection done before signing anything.

One of the things I realized I needed to think about were all those purchases a homeowner must have that an apartment dweller probably doesn't need: a lawn mower, hoses, water softener salt, rake etc. A lot of them are relatively inexpensive but they can add up.

And I also need some new furniture, but I'm in the 'cross that bridge when we come to it' mindset on that!

[JenJay]

Very true! Window coverings, lighting fixtures, pet doors, landscaping, etc. All little things you're stuck with when you rent that you get to change when you buy, which is awesome, but not cheap.

[DavidH]

I know the home shows portray people moving into a new house with new furniture and everything, but many people can't afford the house, updates, and furniture at one time.  It also isn't a bad idea to move in a wait a little while to see what you really want after living in the space.

There are a whole lot of random things as you say, mowers, hoses, gardening supplies, fertilizer, blinds, snow shovel, etc. For things like a mower, craigslist is a good source of inexpensive used ones, for binds, you can get very inexpensive temporary items at a home improvement store while you order or save for exactly what you want. 

It is very easy to spend $500 or $1000 at a home improvement store the first time you buy a house on things you never really though about before. 

[magicdomino]

Very true! Window coverings, lighting fixtures, pet doors, landscaping, etc. All little things you're stuck with when you rent that you get to change when you buy, which is awesome, but not cheap.

Even a brand new house can run up quite a bill.  At least a used house will come with some landscaping and perhaps some window treatments.  Even if they aren't to your taste, it gives you something to work with.  And then there are the future repairs, both large and small. 

That's okay.  A house may be a money pit, but it is your very own money pit.   

One small tip:  Leave off the landscaping for a year, aside from mowing the lawn and removing any dangerous trees.  The house bought in late summer may have an excellent display of spring bulbs; the bush that looks dead in April/May may be a beautiful blooming crepe myrtle in August.

[AfleetAlex]

Very true, although since I made the offer in late August, I've seen it through summer, fall and winter! 

I'm not going to go crazy on furniture right away; however, I've saved up to replace certain very worn out pieces that I don't even want to set foot in the new space!