I need some words of encouragement and advice. Here it goes.. In June I decided that I wanted to buy a house and stop flushing money down the drain, so I called my bank to see how and what I needed to get a loan. Well after signing a few papers I was preapproved for a mortagage. Being a first time home buyer my bank offered inhouse financing up to $65,000 with 3.5% financing for 30 years. Extremely extatic, I started my search. I knew I had to be in a certain school district and elementary school area( I have a 5 year old just starting Kindergarten), and had to have 2 bedrooms. Well my real estate agent called me and advised there was a house that just came on the market but was a foreclosure. This house was in a prime neighborhood that I knew I could never afford other wise, so we went for a look and it was love at first sight. It had everything we need and some. So since the house just went on the market Thursday August 23 (the day we looked) the seller wouldn't entertain any offers for 48 hrs. I put in my offer of $62,000(on market for 59,900( the house is worth double that)) I asked for 3% assist and I waited. Monday August 27th rolls around and with no other offers on the table, they accepted:) Its now November 14th and were still not in the house. I was supposed to close on the house Oct 19th, but my contract has been extended 2 times already. The issue is the Deed, I was told it needed to be transfered from the original owners to the Sheriff, then from the Sheriff to the Bank. Why and How is it possible that the bank can put the house on the market before this is all done. I just dont understand.
I'm a single mom, working 2 jobs, had to move out of my rental(Sept 23) because my landlord was going to renew my lease for another year(lease end Oct 1) if I didn't move. So I put all of my things in storage and my daughter and I started staying with my dad(my mom passed way in 2004, I was 19). This isnt the best set up as my daughter and I have to share a bedroom, my dad smokes, and doesn't clean up after himself. I"m trying to stay positive but this is so overwhelming. During all of this mess, my transmission went in my car, so I had to borrow money to buy another car(it runs, but isnt pretty). I had to get a new job, because my company was down sizing and I was to be let go, I broke up with my boyfriend(not such a bad thing), and I'm doing this alllll alone(not such a bad thing either, just hard not having someone there to talk to about it). I know in the long run this will be the best investment I'll ever make(if I make it).
Any words of advice, encouragements, or similiar stories are all welcomed.
***I didn't mention earlier but my loan was approved Nov. 2, so hopefully I wont have to go through loan process again. Also my attorney and real estate agent have called numerou times on my behalf, so I think my next step is calling myself. The program my house is under is called "HomeSteps".
I agree with Krista P. You need to see how long the rate is "locked in" for. Usually it's 90 days or less so you very well may be running out of time. If you do, you'll have to start all over again with a new loan application. Given that you just started a new job, it may be difficult to get qualified again or be qualified for the same amount.
When you move into your home all the grief will be worth it looking back!
I cried several times when purchasing our home on a short sale and it was so much work and an emotional roller coaster but so worth the wait and money!!!!
I would ask your realtor to start putting some pressure on the people she is dealing with at the bank. You should have been able to close at this point. Have her mention that you are now home less while you are waiting maybe they will get it done a little quicker.
Worst case is that you threaten to walk away, then they have to start the entire process again and that will cost them more money. The down side to that is they may just let you go and find another buyer.
Hang in there :)
Congrats on such a steal! Our first home was also a foreclosure, it was a big headache but we were always so proud of how much we saved. We were able to make big improvements on it and sell it for a good deal more when we finally needed a bigger place.
Your realtor can probably put some pressure on, banks tend to drag their feet once they have a buyer. If she hints that you are going to back out, that might help. With our place, they went ahead and gave us the keys so we could start working on it (tearing up carpet, etc.) before all the paperwork went through. I DO NOT recommend that, we were very lucky that nothing went wrong.
I don't want to scare you, but you really should check in with your bank to make sure your financing is still good. You have had some major changes in your life that could affect the financing and financing is not final until you sign the paperwork. Do that NOW!!!! So you do not get to closing and the refuse to fund it.
Your realtor can put pressure on the bank to push this through.
Just keep your head down and be patient. It will come through and soon you'll be a HOMEOWNER! :-)
Keep on the agent and the bank and see if you can get them moving any faster. Explain your situation.
Also, keep in mind that staying with your dad until your house closes and you can take possession means that you aren't paying rent OR a mortgage! So sock away as much as you can right now and think of it as a blessing in disguise.
You're almost there! :-)
You realtor needs to be doing a better job pushing this through and following up with the title company and selling bank. There's no reason a foreclosure sale should take that long. Short sales are notorious for taking forever, but foreclosures are usually very quick and clean sales. Call your realtor and find out what's going on here.
Hang in there. You've done the hard part, now you just have to see it through to the end. Buying a home can be a daunting process, but pretty soon you'll be in your own home! Just keep that goal in mind. You can do it!
I hope everything works out for you. I don't much about buying a foreclosures but we just bought a home and the process was extremely difficult. We bought our first house in 2005 during the real estate boom and it was SOOO much easier then. We were making less money to 2005 but banks were willing to us more. I know that's what led to the current economic situation that we are in but still...Anyway, with the house we just purchased, we signed the contract in March and did not close until May 15th. Closing was delayed twice. My brother just bought a new home and was selling his current home and it has been a disaster for them too. The signed their contract in mid June and they just closed on Halloween! So all I can really say is that I know 2+ months seems like a long time to wait and it can be very discouraging but nowadays 2 months isn't really that long and it will all be worth it in the end. Just make sure you have all your ducks in row so you're ready when they are.
I would check with an attorney. I don't know much about foreclosures, but I do know that banks will do whatever they can to avoid them. Perhaps they are still working with the original owners to modify their loan?
The realtor is a great person to start with... the get a referral to a real estate lawyer. A letter from an attorney may push the bank along a little faster than from your agent!
In the meantime, please check with your lender. When we purchased our home, our approval and mortgage rate were "locked in" for 90 days. The builder changed our date 3 times because the house wasn't finished and we had to go through the approval process again before we could close on the house. If you got approved in late August, you may be running out of time.
I don't know anything about foreclosures! Stay positive--hopefully you're almost there!
