Real Estate Crash thread

[4matic]

The odd thing is after 90 days "gift" money is basically clean.

[MontuckyFried]

It's because they don't want to lend you a large amount of money at rock bottom interest rates for thirty years...

Bingo. That's what it seems like, at least. They're just able to conveniently enforce the Patriot Act now that it suits them better.

[MontuckyFried]

The odd thing is after 90 days "gift" money is basically clean.

That's what's stupid about the whole thing. So they question OUR money from our OWN dang accounts, but somebody getting hundreds of thousands from an anonymous source 4 months before is a-ok? Stupidity run amok.

[4matic]

I'm getting a lot of calls from realtors asking what my "bid deadline" is. I'm comfortable the house is priced at full value so I'm telling them first come-first served. Advice?

[SuperGaper]

Our condo in Jackson closes on the 30th, controlled by the Housing Authority so me made 3% since 2005, not bad in the end.

Close on a house in East Jackson on 5/17, but will honor the existing lease until end of September. $435,000 of 1971 ranch in Far East Jackson, been a rental for 20 years so will need some, ahem, updating. Big flat lot, 2 doors down from the Elk Refuge. Paid asking, but hoping for $6000 for new windows.

30 year fixed bought down to 3.5 for $2k and change, no closing costs.

Not looking forward to renting all summer, but hopefully will be worth it in the end.

In high rollin' SF, my parents listed their home of 32 years, a 1901 3 story victorian on 3rd and Clement for 1.3 million, under contract for 1.335 48 hours later. They are already under contract in Napa, condo on the river downtown for like $700k.

They bought the SF house for 185k in 1981!

[mobygrape]

In high rollin' SF, my parents listed their home of 32 years, a 1901 3 story victorian on 3rd and Clement for 1.3 million, under contract for 1.335 48 hours later. They are already under contract in Napa, condo on the river downtown for like $700k.

They bought the SF house for 185k in 1981!

Nice move! I'd happily move out of the city to the country for that kind of payout. Maybe downtown napa is not the country, but sounds like a nice change for them.

[mobygrape]

I'm getting a lot of calls from realtors asking what my "bid deadline" is. I'm comfortable the house is priced at full value so I'm telling them first come-first served. Advice?

This sort of sounds like they are feeling out a multiple buyer situation, or seeing if you would hold off accepting a bid in order to generate said situation.

If you're happy with the sales price, and it's a solid offer, I'd say go with it. Don't monkey around waiting for multiple offers. Sounds like that's the way you're leaning.

The offer in hand can evaporate if you start dicking around.

[liv2ski]

Patriot act. That's what my mortgage broker told me. All money has to have a documented trail for at least 90 days.

Your broker is an idiot. Guys, documentation is still easier now than it was in 1984, when I started in the biz. That said, all borrowers need to understand that all money needs to be sourced or seasoned from an acceptable source. Don't be moving money around 90 days prior to applying for a loan or during. Provide the lender your last 2 years tax returns and most recent 30 days pay stub, etc, etc. If your LO can't walk you through the basics, get a new one.

[4matic]

I'm getting calls from brokers trying to wrangle both sides of my deal. Ruthless bastards.. I did get a call from the guy that brokered the place to me wanting to run an open house and made it clear I was only paying one side of the deal. I would probably let him do it but he's such a dumass. Offers are not rolling in on day one. The agent selling the house down the street came by and said my house is way nicer than the one he's selling (it is) and also that if you don't have a bid in one week you're too high. He lowered his price today; still higher than mine.

[MontuckyFried]

Provide the lender your last 2 years tax returns and most recent 30 days pay stub, etc, etc.

It ain't that easy anymore. Or at least it wasn't for me. My loan just got final approval TODAY, so I'm pretty up to date on the procedure. Those guys went through my stuff with a fine-toothed comb. I have a bit of unique situation, where my residency is established in one place, but my clients send me all over the state for work. They could not fathom how I had no rental expenses in my place of work. I kept telling them that my clients pay for my lodging and related expenses. They kept questioning that, and their system kept (falsely) plugging numbers into my monthly expenses. Kept saying I had rent. Kept saying I had a mortgage. Neither is true. What's so freaking hard to understand about my situation? Is it that hard to believe? I had to not only show them multiple tax returns and all associated docs (hudge packets), but they wanted my corporation's tax returns, letters from me, letters from my financial adviser, letters from my CPA, utility bills, insurance statements, HOA dues, they checked with the Secretary of State to prove my employer was a real company and current, and the list goes on and on and on. I freaking WISH it was just 2 years tax returns and pay stubs.

I'm a damn good bet for a bank, as I am as good of a potential borrower as they could ever wish for (as far as risk goes). It's just freaking hard to get a mortgage now.

[4matic]

First offer today at $380k with no closing costs to me; $10k over ask. I hope the dump will appraise. Eat it Hugh and Benny!

[MontuckyFried]

First offer today at $380k with no closing costs to me; $10k over ask. I hope the dump will appraise. Eat it Hugh and Benny!

Good luck with the appraisal. Apparently our bank's underwriters were giving our appraiser all sorts of heck. If it freaking goes through already, we'd be getting a damn good deal on the place. Should be worth MUCH, MUCH more, but it's a foreclosure and a great price. Yet, those buttholes have been nitpicking everything, and kicking it back to him time and time again for the dumbest of things. The place is in pretty great shape too, with a climbing local market, so no worries there as far as the bank's concerned. The final appraised price is only 5k over what our offer is. Our realtor is annoyed because it should have been much more solid than that, like 100,000-200,000 more solid than that.

Buncha bullcrap going on in the lending world right now. More to add to my story today in a bit.

[MontuckyFried]

...Continued.

So I get a call from the bank this evening. I've been told for the last couple of weeks that everything was good and they were simply waiting for the appraisal. I was told I was approved. However, we've been working with a deadline from the Seller, Fannie Mae. Bank was supposed to get all docs in by today. They failed. Now that they've accepted the appraisal (finally), they drop the bomb this evening that they need like 4 more items from me, and won't proceed until then. I'm talking total bullcrap items. Like a letter saying that my move to Montana (which happened a couple years ago) did not adversely affect me financially. WTF? It's obvious it didn't as they've scrutinized all my financials for the last few years. They also want more crap from my CPA.

This deal might fall through due to the damn underwriters, who ironically are working for Fannie Mae. My realtor was telling me she's never heard of banks requiring so much freaking stuff, and that it's worse these days than ever before. If I'M having this tough of a time, then I'm not sure who the hell could possibly get a mortgage these days. It's retarded. The lender (ultimately Fannie Mae) was demanding pointless documents from the Seller (also Fannie Mae) that the seller straight up refused to provide, and lender said they couldn't proceed without it. Had to beg to get that waived, after seller said "Absolutely not. We don't do that." The hang up? Seller said in original buy-sell "Non-realty items are not conveyed" (such as appliances and junk leftover inside the house). Lender wanted an amendment stating "the value of non-realty items is $0." Seriously. Who freaking cares? Original buy-sell addresses that, saying that crap's not being conveyed.

I think you're right, Benny. They don't want to give loans out these days with such low interest rates, and they seem to be trying their best to stop me. Now it feels like they're just dicking with us. Why would these underwriters pull this crap at the last second? I'm about to freaking lose it with these clowns. After putting up with their bs (from both ends) for this long, I don't know what I'm gonna do if this falls through, which it might if they don't get all docs in to the title company stat.

[Benny Profane]

This is important. It's not only California.

http://www.calculatedriskblog.com/20...-investor.html

[4matic]

I put the house in escrow. Too bad because an offer came in today at $400k. Should have been more patient. I'm guessing it won't make FHA appraisal so I'll probably get another shot.

[Benny Profane]

http://www.calculatedriskblog.com/20...sh-buyers.html

[mobygrape]

I put the house in escrow. Too bad because an offer came in today at $400k. Should have been more patient. I'm guessing it won't make FHA appraisal so I'll probably get another shot.

Too bad. Not every offer floated pans out, though. Some sketchy realtors/buyers out there. We had 3 offers the first weekend ( house priced right). None of them panned out.
one weird buyer wanted to buy sight unseen, verbal offer. backed out late that night. realtor was super sketchy too.
one couple did not have funds, were relying on dad, who didn't like the house, no funding
not sure what happened next. Something dumb.

2 days later got a solid offer. There are ( or were, a couple of years ago) a bunch of freaks out there...

Good luck

[Flyoverland Captive]

I'm about to list my house; the last one took three years to sell, so I'm preparing for a long ride.

[mobygrape]

http://www.calculatedriskblog.com/20...sh-buyers.html

Why would you purchase a home w/ all cash w/ rates this low? Unless you don't think you can make a better return elsewhere...

I guess it sort of greases the transaction, as you don't need to wait for the bank to get their act together, and appraisal above offer price is not really a concern. I guess that is some motivation to make sure things go smoothly.

[Flyoverland Captive]

My realtor told me he just closed on a house for a client who put 50% cash down; it still took the bank four months to get the mortgage done. 100% cash saves a lot of headaches.

[MontuckyFried]

My realtor told me he just closed on a house for a client who put 50% cash down; it still took the bank four months to get the mortgage done. 100% cash saves a lot of headaches.

I can believe it. My bank's underwriters are being utterly retarded right now. I might lose the house all-together if they don't pull their heads out of their rears within the next half hour or so. Deadline to get docs to title company was last Friday. They decided at the last second (literally - Friday afternoon at the end of the business day) they needed more inconsequential items from me and are holding up final approval. I've provided everything they wanted to the letter, and today they decide they need more stupid (and non-existent) items.

If your home sales are being held up or falling through, this is why. Lending is tighter than ever right now, and is an absolute nightmare to go through. Good luck.

[Benny Profane]

Why would you purchase a home w/ all cash w/ rates this low? Unless you don't think you can make a better return elsewhere...

I guess it sort of greases the transaction, as you don't need to wait for the bank to get their act together, and appraisal above offer price is not really a concern. I guess that is some motivation to make sure things go smoothly.

It's mostly institutional money investors, small mom and pop investors, or Boomers finally selling in expensive markets and moving to cheaper places, like Florida and Arizona. The normal market is still sick.

[4matic]

Too bad. Not every offer floated pans out, though. Some sketchy realtors/buyers out there. We had 3 offers the first weekend ( house priced right). None of them panned out.
one weird buyer wanted to buy sight unseen, verbal offer. backed out late that night. realtor was super sketchy too.
one couple did not have funds, were relying on dad, who didn't like the house, no funding
not sure what happened next. Something dumb.

2 days later got a solid offer. There are ( or were, a couple of years ago) a bunch of freaks out there...

Good luck

All three of my bidders visited the house and deposited checks with the title company. I just don't believe this house will appraise at $400 sq ft which might be part of the intention. If it doesn't appraise they will be first in line to negotiate price. I will be stunned if FHA appraises it for $380k but I'll take it. Two were FHA and one was 5% down conventional with contingency of $5k over appraisal maximum. No way it appraises for $400k imo. I did get a call about an all cash offer but turned it down.

[skier666]

Rents still increasing in Silicon Valley (Santa Clara)....70's construction apartment complex - studios are now up to $1515/mo and 2bed/2ba now as high as $2025/mo.

SF Housing is now back to nutso. Limited inventory, low rates, bidding wars, lack of rain this year (its been nice, heh) and a hot job market are fueling the fire. To be fair, we had to negotiate the purchase of our last two homes before they even went on the market...so its always been a tight market. It is tempting to flip our place given the amount of work we've put into since September...but we need a place for the kiddies and this one's as perfect as we can get right now.

As far as South Bay areas such as Cupertino and Sunnyvale...I heard on a Real Estate radio show that some of the past weeks sales had 64 offers on them. One of which had a listing price of $900K range and ending up in contract at $1.4mil.

Going through the REFI process now as well to try to lock in a lower rate. I agree on on fronts from above. The amount of scanning, signatures, re-scanning, re-explanation, etc has been mindblowing...and basically was my fulltime job all last week.

[skier666]

I went to a event showing of this place last week...not really my style but check out the dining table chairs!

http://m.sf.curbed.com/archives/2013...s_for_765m.php