short sale counter. UGH@!

scorpiomom2005 · September 2011

So we had an update that the house we offered on had 2 mortgages. We offered slightly less then asking price, with closing costs included. The first lien holder approved the sale price, but only half the closing costs. This is our first home, so we don't really have a lot to play with, we have the 3.5% down payment, but very little to play with after that. If we have to pay closing costs we won't really be able to paint or carpet or anything like that until we get built back up. This is a kink in my plans, but we're still waiting to hear from the second lien holder. I'm almost thinking this is a sign or something.

breaness · September 2011

When you say you have the down payment, but little to play with after that, does this mean you don't have any savings left?

I would highly recommend not buying until you have enough money for a down payment, the ability to pay closing costs if needed, the ability to pay for new home expenses (moving, paint, etc.) and still have savings left over.

Since we've gotten into our house we haven't been able to put any money in savings. We're working on getting it the way we like and buying all of the things we need. It'll probably be November or December before we're settled 100% and savings will start building up again. If we didn't have our emergency fund, I'd be freaking out right now.

realisticdreams · September 2011

I feel you. We have owned a mobile home before, but bought it straight out. Obviously funds are tight since I can't work much with all of the girls therapies/dr. appointments. Winter is where DH makes his money, 3x as much per paycheck.

We were planning on saving A LOT this winter & looking in the spring, but our REA friend told us about the RD/USDA loan, with 0% down, and I FELL IN LOVE with a house that was 67550 list price. We didn't know if RD was going to be funded for next year & totally dove head first into this.

We were pretty much oblivious to the charges that would quickly add up.

$500 earnest deposit (cashed upon seller acceptance)

$400 appraisal

$275 home inspection (only thing we have paid out of pocket, and we actually have a friend whose godfather does them & he did it for free)

$390 septic pump/inspection (THIS WAS CHEAP!)

$590 well/septic/termite inspection (FML. base price $270, had to be repeated, $200 charge for "RUSH" on the first, even though it took longer than the non rush 2nd.)

$560 1 year homeowners

$400-800 escrow deposit for taxes 6months-1 year

Then mandatory things like Changing locks, etc.

We don't even know how much we have to bring to closing AND we were supposed to close yesterday.

we have 3% seller closing costs (really this is us too because we had to bump the selling price up by 3%)

I know some of those you may not need depending on location (well/septic?)

but it adds up..quick. We have about 3k in savings and if closing costs are 3k we are screwed, if closing costs are 1k, I will be happy. Last 'quote' was $600 out of our pocket in addition to our $500, I don't think this includes well/septic totals though.

I can't wait for this to be OVER.

Justinlove · September 2011

Please tell me that you are do have a 6 month reserve set aside for your emergency fund. If you don't, then I would really reconsider attempting to purchase this home. Homes are more than the mortgage and if you can't afford paint....I can only speak for myself when I say that I would NOT feel comfortable living that close to the bottom of my wallet.

breaness · September 2011

Justinlove:
Please tell me that you are do have a 6 month reserve set aside for your emergency fund. If you don't, then I would really reconsider attempting to purchase this home. Homes are more than the mortgage and if you can't afford paint....I can only speak for myself when I say that I would NOT feel comfortable living that close to the bottom of my wallet.

Couldn't agree with this more.

short sale counter. UGH@!

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