Wednesday, August 22, 2007

Almost there.

Well, we're getting closer, but the bank just called and asked that we deposit $13K at their bank. They are really nervous about the whole mortgage business. Lehman Brothers just closed their sub-prime lending operation today and are laying off 1200 employees. What a time to get a rehab loan!

Friday, August 17, 2007

The Bank and the City

I don't know what our City guy said to the Banker, but I absolutely love him. He spoke a long time on the phone with our banker and made the banker very pleased with the situation. I guess that's all that really matters.

So we can go ahead with the rehab loan as planned.
Bullet dodged.

Now on to the "Post Rehab Appraisal". This is where we tell the bank all of the work we're going to do to the house to increase the value. This part includes figuring out permit fees, material costs, contractor appraisals, and everything we add to increase the value of the (banks') property so that if both of our heads fall off, the bank can reclaim the value of the loan.

I want this in our kitchen:

Apparently is costs about $4k.

I need to figure out how to make it/find it at about 25% of that cost. It's the first real project I've got to start on. Wish me luck.

Friday, August 3, 2007

When it rains, it pours.

OK, so it's not really news that the Sub-Prime Lending market is imploding. Yes, we knew that. Hell, we saw it coming a year ago. But COME ON!

We've been talking with a local bank who offered us a decent deal on a rehab loan. There are lots of twists to this loan as we are self employed and well, a bunch of idiosyncrasies. But as of the start of this week, our guy at the bank basically says, "Yes, we've got you a rehab loan." We were happy. Things were working out. We should have KNOWN that was the first sign of the apocalypse.

So after what... 2 days... our rehab banker calls us. "Oh, by the way, we're not doing this rehab loan program anymore. You have 24 hours to complete the loan application to lock it in or we can't help you." --WHAT?!?! OMG,so now we have until the close of business ( I hope) to scurry our little beehinds over to the bank with a check for $xxx to seal the deal.... oh, but wait... we can't do the rehab without the City agreeing in writing to sell us the house and to guarantee the rehab incentive loan from the City. Argh!!!

OK, well that shouldn't be too hard. The City Commissioners voted to sell us the house, we just need it in writing. That's public record, right? And the Rehab Loan Application was sent in on Monday. They already agreed (in principle) to give us a rehab loan... like MONTHS ago. What's the big deal?

The big deal apparently is that the City had an appraiser head over to the house. He estimated the value of the house at $5K over the AGREED to selling price, and apparently the city may not be able to sell us a house for less than the appraised value... even though comparably priced homes are HABITABLE-- and ours is decidedly NOT habitable. And, the application process is more in depth than the bank loan. Looks like trouble. So where does this leave us?

It leaves us with 2 hours to have the City approve the Rehab Loan and get the paperwork to the bank and get the bank to agree to the terms of the City. We have six hours for us to get a check over to the bank, assuming all conditions are met, and IF the City doesn't change their deal to sell us the house at the price we proposed last year.

Hubby is rapidly trying to get the bank and the city to communicate, hopefully to get everything ok'd and approved before the Rehab loan offer goes away. Apparently the bankers are terrified of all these sub-prime loan fiascoes blowing up.

I gotta admit, I understand.