I want to buy a house... then make it a home..

[NowImDownInIt]

REALLY, really long.....

Very seldom do I feel sadness about our credit situation.. I would rather focus on the solutions and behavioral changes we are adapting. I go on HAR all the time just to check out the trends in the housing market for purchasing a house when I come out of bankruptcy. I am perfectly aware that you CAN get a mortgage in a chapter 13 bankruptcy, but unfortunately we still wouldn't meet the credit requirements.. Oh, how I wish we did.

I went on HAR today and found my dream home for a deal that you one cannot possibly beat. It is a fixer upper (which is exactly what I want, we are very handy and I want a house that's mine, you know?), built in 1920 (I wanted something between 1900 and 1960), 2500 square feet... It has an incomplete kitchen. It's like someone made this listing just for me. I shy away from houses with "newly remodeled" kitchens because I would just want to redo it anyway. I'd rather not pay $10k more for someone else's idea of a great kitchen. I suppose I am picky.

Get this..

It's $63,500... or $25.32 per square foot

That's less than I paid for my 912 square foot home in 2006.

Why must it taunt me so.... I filed BK in my name before my husband and I married 4 months later. His credit is not much better than mine, but we've been working on it. I figure by mid next year he will have between a 650 and 700 credit score. Mine might back it to 640. It's very close already.

I imagine that this is a house that was put on the market after Hurricane Ike because the only major issue (other than the incomplete kitchen) is the cut out drywall on the first floor. My dad knows people though.. I know it wouldn't be an issue.

Here are things that we can fix ourselves:
- Stairs leading to mother's quarters
- Kitchen, including cabinetry
- Possible replacement of subfloor and flooring downstairs
- Deck on front patio (it doesn't really need replacing though, just something we
would consider)
- Repairing brickwork on fireplace
- Sun room windows
- Back porch and portico

The things we would need to hire someone for is wiring the kitchen (if need be) and the dry-walling. I could do the dry-walling myself or have my step-dad do it, but I would want it perfect. Everything else is just details and the only things that would be necessary from the gate are getting in a sink, some makeshift counters and bringing in our stored appliances.

In case you are concerned, I am not overestimating our abilities. My husband is incredibly handy in his own right and I have volunteered with HFH for going on 10 years now (since freshman year with JROTC) and my mom, sister and I totally gutted and refinished a house from the ground up after my parents divorce when I was in the 7th grade. We didn't have the money, so we did it ourselves. Including the drywall. LOL. I want that with my home. I really can't get that feeling of ownership without putting in the sweat equity. Nothing beats the pride we get from super awesome before and after pictures.

Judging by the dated pictures, it went on the market on September 10th. Anyone out there with the realty experience to tell about the average time a house like this would sit? I know all markets are different but best guesses are fine too. I just want to have hope that it's even possible. I guess in reality it's kind of a pipe dream.




What do y'all think?

Here's the listing if you want to check it out..

http://search.har.com/engine/dispSearch.cfm?mlnum=38106184

[drowning123]

That's a nice house, and if structurally sound, an excellent bargain. If you can totally afford it, I'd say go for it. It'll take your mind off things and you can start building your life again. This is what we mean here by having a fresh start. Good for you. I see some folks get crippled by the fear of taking on the responsibility of owning a home again after bankruptcy. I can't say I blame them. It's a scary situtation, but you do whatever makes you comfortable. Luckily for you, you have a husband. I wouldn't want that responsibility anymore, as I'm a single mom. I'll rent from now on. Maybe one day I'll buy a little condo after my son is grown.

[NowImDownInIt]

That's a nice house, and if structurally sound, an excellent bargain. If you can totally afford it, I'd say go for it. It'll take your mind off things and you can start building your life again. This is what we mean here by having a fresh start. Good for you. I see some folks get crippled by the fear of taking on the responsibility of owning a home again after bankruptcy. I can't say I blame them. It's a scary situtation, but you do whatever makes you comfortable. Luckily for you, you have a husband. I wouldn't want that responsibility anymore, as I'm a single mom. I'll rent from now on. Maybe one day I'll buy a little condo after my son is grown.

That is totally understandable too. Our issue is approval. IDK if we can even get approved.

The house has really good bones. It's very structurally sound, no dry-rot in the frame, no termites (which is a huge problem in this area), the drywall just fell apart from the storm surge from Ike.

More and more people are renting these days, but my history really makes me want a home for my kids to grow up in.

Caution: Story of my life to follow

My parents split up and reunited 7 times before they finally divorced in 1998. During their marriage, up until 1994, my dad worked as a photographer and we moved whenever the jobs ran out. They tried to make it to where we would move during the summer or Thanksgiving break. We moved every 6 months to a year and never within 100 miles of the last place we lived. In 1995 he went into yacht sales and we settled (kinda ?) in the Houston-ish area. I went to 5 school districts between 1994 and 1998. I have no childhood, lifelong friends. We finally stopped moving when my mom bought the house I mentioned above when I was in the 8th grade. I went to school in 12 different school districts before 7th grade.

I think that I have moved more than the average military brat. Since becoming an adult, I have lived in 9 different homes (well, houses and apartments, not really homes). I am 24 years old and if I have my way, after we buy a house and move, we will not move again until both kids are out of the house and we want to downsize. I want to buy a house before 2012 because that's when my son starts kindergarten and I want him to start and finish in the same school district. That's one of the few things that are really important to me. I want to make memories, in a home, with my family.

If I add it up all my moves, I think it comes to somewhere around 26 moves. I can't remember or personally verify moves prior to kindergarten excepting that I know where I was born and my sister so those verify at least one move. As a general idea, my older brother born in Big Spring, I was born in Plano, and my little sister was born in San Antonio. That makes a pretty awesome little equilateral triangle with 300 miles in each leg. Add Houston, Austin and Port Aransas into the mix and you more or less get the story of my life.

[drowning123]

OK, NOW I get what you're saying. I'm 38 and I've probably moved 6 (twice at the same place) times within New York. LOL. Well, you may need to let this one go if the credit can't cut it. I'm sure an even nicer one will come along. I've only moved once with my son and now twice after I leave the house. My son was 3 when I moved into the house I'm now surrendering. It was my first house and I was excited, but oh how that has changed. I found all sorts of things wrong after living there and lately I've started to hate it more and more. It was just a starter home, but now I'm done with it. My son is now 10 and hasn't really made much friends at school anyway, but I'd like him to finish 6th grade at this school. I hope to move in time so that he can start middle school in a new school district and that's where I'll settle until he leaves for college.

[tobee43]

That is totally understandable too. Our issue is approval. IDK if we can even get approved.

The house has really good bones. It's very structurally sound, no dry-rot in the frame, no termites (which is a huge problem in this area), the drywall just fell apart from the storm surge from Ike.

More and more people are renting these days, but my history really makes me want a home for my kids to grow up in.

Caution: Story of my life to follow

My parents split up and reunited 7 times before they finally divorced in 1998. During their marriage, up until 1994, my dad worked as a photographer and we moved whenever the jobs ran out. They tried to make it to where we would move during the summer or Thanksgiving break. We moved every 6 months to a year and never within 100 miles of the last place we lived. In 1995 he went into yacht sales and we settled (kinda ?) in the Houston-ish area. I went to 5 school districts between 1994 and 1998. I have no childhood, lifelong friends. We finally stopped moving when my mom bought the house I mentioned above when I was in the 8th grade. I went to school in 12 different school districts before 7th grade.

I think that I have moved more than the average military brat. Since becoming an adult, I have lived in 9 different homes (well, houses and apartments, not really homes). I am 24 years old and if I have my way, after we buy a house and move, we will not move again until both kids are out of the house and we want to downsize. I want to buy a house before 2012 because that's when my son starts kindergarten and I want him to start and finish in the same school district. That's one of the few things that are really important to me. I want to make memories, in a home, with my family.

If I add it up all my moves, I think it comes to somewhere around 26 moves. I can't remember or personally verify moves prior to kindergarten excepting that I know where I was born and my sister so those verify at least one move. As a general idea, my older brother born in Big Spring, I was born in Plano, and my little sister was born in San Antonio. That makes a pretty awesome little equilateral triangle with 300 miles in each leg. Add Houston, Austin and Port Aransas into the mix and you more or less get the story of my life.

ahhhhhhhhhhh.....my heart goes out to you NOWIN...it's a lovely home...indeed it is..

ok...let's get creative here...call the realitor...ask him if the owner would consider owner financing?? tell him or her the situation and ask them if they could help you.

now....my daughter could not sell her house and needed to move to nc.....sooooooooooo.....she found someone with terrible credit that wants to buy the house....she found a broker that's working with the couple to build up their credit to be able to buy the house...in the meantime this couple is paying the mortgage and has 18 months to improve their credit enough to purchase my daughters house...it was a win win....for my daughter...but it never HURTS to just call and be honest and say...HELP ME GET THIS HOUSE...who do you know that will give me a mortgage...?? i vote go for it!!

[NowImDownInIt]

now....my daughter could not sell her house and needed to move to nc.....sooooooooooo.....she found someone with terrible credit that wants to buy the house....she found a broker that's working with the couple to build up their credit to be able to buy the house...in the meantime this couple is paying the mortgage and has 18 months to improve their credit enough to purchase my daughters house...it was a win win....for my daughter...but it never HURTS to just call and be honest and say...HELP ME GET THIS HOUSE...who do you know that will give me a mortgage...?? i vote go for it!!

This got me really excited. Then I googled the address and discovered that it is now bank-owned, so I don't think that will fly. I could qualify if I bought it myself, but I can't with my husband at the moment and Texas is a community property state.

[tobee43]

well, you know what???? the bank doesn't want it either...really still call...see if you can find someone to work with...ok..it might NOT be this house...but a house you will have. it might take some work...but you can do this i know it!!!

[NowImDownInIt]

I am really, REALLY excited now. Am going to update when I get home.

[tobee43]

I am really, REALLY excited now. Am going to update when I get home.

it's hard to get you going that's for sure...come on...now really...what do you have to lose...absolutely nothing but everything to gain.

what the heck are the banks going to do exactly with all these empty houses...somethings going to give...and i just want YOU to be one of the first in line when they start handing it out...

[DeadManCrawling]

If you are really interested, I would pursue it. I would also throw extreme low-ball offers, if you get a line on financing.

A house like that might sell for half (or less) of what is listed price. Banks are funny creatures when it comes to selling homes, especially fixer-uppers. Keep in mind that the level of work required on that particular home will rule out almost all normal financing. Most FHA, Fannie, etc, must pass inspection to be approved, and that house won't pass.

My wife sells a LOT of lower priced homes, as an agent, and some of the deals happening right now boggle my mind. Homes that were sold for 300k at the height of the boom are selling for 70k now. And they are nice places.

On the low end of the spectrum, you can get, right now: A livable place, minimal repairs, 2-3 bedroom, 2 bath, for 30-40k. A little more, and you get a pool. And in decent neighborhoods. Of course, this is the blighted housing landscape of Florida, but it's great for buyers.

Here, the upper end is in trouble. Anything over about 3k square feet takes a very long time to sell and brings less money than the smaller homes, on a sq foot basis. We think this is because of the outsized tax, utility, and maintenance bills on these homes. And insurance. Many people have reset their expectations and no longer want or even desire the McMansions of years past.

For you, in TX, though, I would say keep pursuing until you have what you want. But do so with the price more in mind than the exact home. If you want a fixer-upper, there will be plenty whenever you have it all together, in terms of financing. Try not to get emotionally hung up on a particular home. There are so many, you should really look at a few dozen in person before even thinking about favorites.

All that said, I could envision a very stately and comfortable transformation in the one you linked. Beautiful in many ways. Lovely fireplace. Make sure to triple-check that upper balcony/porch. The wood looks to be in poor shape, and could pose a problem for the entire upper floor.

Good luck,

-dmc

[tobee43]

If you are really interested, I would pursue it. I would also throw extreme low-ball offers, if you get a line on financing.

A house like that might sell for half (or less) of what is listed price. Banks are funny creatures when it comes to selling homes, especially fixer-uppers. Keep in mind that the level of work required on that particular home will rule out almost all normal financing. Most FHA, Fannie, etc, must pass inspection to be approved, and that house won't pass.

My wife sells a LOT of lower priced homes, as an agent, and some of the deals happening right now boggle my mind. Homes that were sold for 300k at the height of the boom are selling for 70k now. And they are nice places.

On the low end of the spectrum, you can get, right now: A livable place, minimal repairs, 2-3 bedroom, 2 bath, for 30-40k. A little more, and you get a pool. And in decent neighborhoods. Of course, this is the blighted housing landscape of Florida, but it's great for buyers.

Here, the upper end is in trouble. Anything over about 3k square feet takes a very long time to sell and brings less money than the smaller homes, on a sq foot basis. We think this is because of the outsized tax, utility, and maintenance bills on these homes. And insurance. Many people have reset their expectations and no longer want or even desire the McMansions of years past.

For you, in TX, though, I would say keep pursuing until you have what you want. But do so with the price more in mind than the exact home. If you want a fixer-upper, there will be plenty whenever you have it all together, in terms of financing. Try not to get emotionally hung up on a particular home. There are so many, you should really look at a few dozen in person before even thinking about favorites.

All that said, I could envision a very stately and comfortable transformation in the one you linked. Beautiful in many ways. Lovely fireplace. Make sure to triple-check that upper balcony/porch. The wood looks to be in poor shape, and could pose a problem for the entire upper floor.

Good luck,

-dmc

dmc...LOVE your name...i thinkl!!! can your wife refer her to a texas realitor ....or even handle an out of state sale..

shoot we need to start a networking process here to help each other get back on their feet!!

we didn't find the foreclosure buying experience in florida that easy of a task. glad to hear things are starting to finally move!

[NowImDownInIt]

I spoke to my mortgage broker (from my 2006 home purchase) and was informed that I can, in fact, apply for the loan without my husband on the mortgage. I actually qualify now according to her. My scores are within range and my payment history is good. The payment might actually be lower than my current rent, even with PMI. We would lowball the first offer, of course. The house appraised in 2009 for $123,713, this was the value post the Ike damage. So the proposed equity will be quite high.

The house would pass the home inspection (performed really as an FHA appraisal) if they were to supply a stove and demo the back portico. The dry wall doesn't affect safety, soundness, or security. I called the Realtor and was informed that the house is structurally sound, including the foundation. There are no termites.

http://www.hud.gov/offices/hsg/sfh/ref/sfhp1-22.cfm

The neighborhood is good, very established, but not "cookie-cutter" new construction, which I hate. The neighborhood is 100x better than the one I'm in, as is the school district. This is actually one of the two local neighborhoods in which I am considering.

I told her that the home is in need of completion and she did bring up the inspection, but doesn't think it will pose an issue. If it does she said we can explore the 203(k) loan as an option.

http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm#BOR

It has good bones. I think if this doesn't turn out in our favor I will probably continue searching and planning to purchase a home within the next year.

P.S. - I am not even remotely interested in having a pool. I want a home with good bones, so we can give it a facelift.

[NowImDownInIt]

Make sure to triple-check that upper balcony/porch. The wood looks to be in poor shape, and could pose a problem for the entire upper floor.

Good luck,

-dmc

Thank you for all your advice. The patio/balcony you speak of is actually an enclosed sunroom. The windows are just covered with storm/hurricane shutters. I think that the hardwood in there is very dirty and have damage from the storm. I have an appointment to view it tomorrow and I am very excited.

The windows will probably move me into a 203(k) loan, actually.

[tobee43]

I spoke to my mortgage broker (from my 2006 home purchase) and was informed that I can, in fact, apply for the loan without my husband on the mortgage. I actually qualify now according to her. My scores are within range and my payment history is good. The payment might actually be lower than my current rent, even with PMI. We would lowball the first offer, of course. The house appraised in 2009 for $123,713, this was the value post the Ike damage. So the proposed equity will be quite high.

The house would pass the home inspection (performed really as an FHA appraisal) if they were to supply a stove and demo the back portico. The dry wall doesn't affect safety, soundness, or security. I called the Realtor and was informed that the house is structurally sound, including the foundation. There are no termites.

http://www.hud.gov/offices/hsg/sfh/ref/sfhp1-22.cfm

The neighborhood is good, very established, but not "cookie-cutter" new construction, which I hate. The neighborhood is 100x better than the one I'm in, as is the school district. This is actually one of the two local neighborhoods in which I am considering.

I told her that the home is in need of completion and she did bring up the inspection, but doesn't think it will pose an issue. If it does she said we can explore the 203(k) loan as an option.

http://www.hud.gov/offices/hsg/sfh/203k/faqs203k.cfm#BOR

It has good bones. I think if this doesn't turn out in our favor I will probably continue searching and planning to purchase a home within the next year.

P.S. - I am not even remotely interested in having a pool. I want a home with good bones, so we can give it a facelift.

i told you....you will do this...you're going to be the bkform's example of mortgages rec'd after bk...YES!!!!!

[NowImDownInIt]

i told you....you will do this...you're going to be the bkform's example of mortgages rec'd after bk...YES!!!!!

LOL, except it will be during the BK and not after. My plan doesn't end until 2013. I am getting more and more excited.

I just learned that:

Question 42: At what point, or LTV percentage, can the MIP be terminated?

Answer: On loans closed on or after January 1, 2001, MIP will be terminated for mortgages with a term more than 15 years, provided the MIP has been paid for at least 5 years and have an LTV less than or equal to 78%; or for mortgages with a term 15 years and less serviced, in which the LTV ratios are 90% and greater and the LTV ratio is less than or equal to 78% and the MIP has been paid for at least 5 years. Mortgages with a term 15 years and less serviced and with a LTV ratio of 89.99% and less will not be charged annual MIP.

So with the amount of instant equity this house has and the fact that I will be securing a 15 year mortgage, FHA doesn't require mortgage insurance premiums! Yay!