We've hit a bump in the house buying road......

[JeepMom]

The appraisal came in too low. Which normal you'd say "fine, let's get another one". BUT we used in my realtors words the appraiser is "the fairest guy out there" and not "the toughest guy out there".

THEN the mortgage broker won't even send the papers further to underwriting because he knows they will be denied because of the roof of the house. We are still approved for the loan, just not with this roof.

SO, the people will have to fix the roof, get reappraised and then we can work out another price. Or they they can put the money for the roof in an escrow account so we can move in before the roof gets fixed. OR they do nothing and we walk away from the house and start looking for another one.

[miss puff]

I am sorry to hear that Jeepmom. If they do agree to get the roof fixed, are they going to raise the price of the house? Will it make a huge difference in how the new appraisal comes back? How long do they have to decide? Good luck getting all this figured out. I was so excited for you and your new house. please keep us posted

[JeepMom]

We should hear somjething today what their plan of action is.

If the yfix the roof they will get the house reappraised. BUT it won't be much more than our current price because it came in low.

Trying to make sense of this:

We are paying $91K but they are paying $2Kclosing so really they are getting $89K for the house.

The appraisal came in at $89K not $91K.

The roof will add at most $5K-$6K but it will cost $8-10K. So reappraise the house at $95K. Well the the house is higher than before because of the roof so we can renegotiate a price.

Who knows where the heck it will end up.

It's inconvient but in the long run best for us the buyers.

[scammer]

I consider myself a real Estate expert. A realist of sort, I am always looking at deals that are crappy and I need to slap some people around (figure of speech) so they see the real facts. I am kind of a jerk in a realtors eyes. I make them work for the 6% commission, most people don't. Are you willing to answer my questions? Thought I would ask before typing a bunch and wasting my time.

I do have two questions though?

How much cash do you have to negotiate this deal, it is important.



How long has previous owner lived there?, what did they pay? when?

[JeepMom]

I consider myself a real Estate expert. A realist of sort, I am always looking at deals that are crappy and I need to slap some people around (figure of speech) so they see the real facts. I am kind of a jerk in a realtors eyes. I make them work for the 6% commission, most people don't. Are you willing to answer my questions? Thought I would ask before typing a bunch and wasting my time.

I do have two questions though?

How much cash do you have to negotiate this deal, it is important.

$0
We want to put no money up front.

If you mean this:
We offered $91K them paying $2K Closing (Them really getting $89K out of the deal)
Appraisal came in at $89K
Roof is screwing us. It's a total mess, needs complete tear off as there are already 4 layers on top of the boards. (Estimating $7-10K cost for this)


How long has previous owner lived there?, what did they pay? when

I have no idea on either. My realtor is on vacation but someone in his office would be able to tell us if we asked. They are older people and my guess is they own it free and clear. *This is my guess, not a known fact.

[scammer]

You don't have many options with the no cash, banks are wise to these deals. No money downs, are a tough game, and I would suspect tougher with the rising interest rates.

This jumps out first thing;

CAN YOU EVEN GET A HOUSE FINANCED WITH THAT MANY LAYERS OF SHINGLES? Someplace I came across this, forget were that is a issue?

Call city and ask inspector what code is? This might get really fun!!!

Idea's are popping into my head, but do this first.







72

[JeepMom]

Roof must be torn off, I will not buy it with 5 layers.

The realtor called asking if we can put down closing costs and I said that it would be a possible option.(We can call dh's parents they will loan us the cash until Tax return)

It seems that the owners have something up with the house that they have to get $X out of it. (Second mortgage or refinanced or something)

Price quote on the roof was done $9K

[bkbiker]

The building codes in most parts of the country is 2 layers of shingles, (one original roof and than one installed on top) I have never seen a roof with 4 layers, 3 layers once.

Good luck,
bkbiker

[JeepMom]

3 is common around here. 4 is insane.

Them being cheap with the roof is bitting them in the ass.

[scammer]

The building codes in most parts of the country is 2 layers of shingles, (one original roof and than one installed on top) I have never seen a roof with 4 layers, 3 layers once.

Good luck,
bkbiker

Thats what I thought, think of the weight on it!!!, can't imagine it would even lay correct with four!!!


whats this mean???
"It seems that the owners have something up with the house that they have to get $X out of it. (Second mortgage or refinanced or something)"


So were are we at here on the roof???, whats code Jeep??

[pink_amulet]

Jeep ~~ you have a private message

[JeepMom]

whats this mean???
"It seems that the owners have something up with the house that they have to get $X out of it. (Second mortgage or refinanced or something)"
It means they probably have a mortgage of (using numbers out of the air) $83,500. 6% Commission on $89,000 is a about $5,340 so they need to break even at some point. They can't sell the house for $85K because it won't cover the loan they already have.



So were are we at here on the roof???, whats code Jeep??

I have no idea but 4 layers is against code I would assume.

[scammer]

whats this mean???
"It seems that the owners have something up with the house that they have to get $X out of it. (Second mortgage or refinanced or something)"
It means they probably have a mortgage of (using numbers out of the air) $83,500. 6% Commission on $89,000 is a about $5,340 so they need to break even at some point. They can't sell the house for $85K because it won't cover the loan they already have.



So were are we at here on the roof???, whats code Jeep??

I have no idea but 4 layers is against code I would assume.

This is the main thing I come across in deals all the time. In fact, I am in one right now. I have a deal were seller is above a realistic price, due to sales commission and payoff. Ain't my fault, and I am not the scape goat to offer above market to help him out.

So, your deal is dead wouldn't it be?

You have possible long term owners that kept going back to the well and sucking equity out.

A house that the seller should have completed the work themselves, wonder if a permit for a new roof was ever pulled on this place.

A house that doesn't meet code, and probably can't be sold, if your going to get a mortgage on it. If the appraiser caught that situation and noted it properly wonder what FNMA or FHMA would allow? Bet they wouldn't let the deal fly.

Simple solution, they dig into there pocket and fix the roof that is not within code, and then they market the house.



Bad situation, don't be there scape goat.

[scammer]

ohh by the way, watch out for this one.

You get a call from bank or realtor trying to roll the whole cost of roof into your mortgage to keep deal alive.

[robivi3]

Y'all are lucky! here in Sunrise they won't even let us double layer! Sorry the deal is having glitches.