Saturday, September 15, 2012

Acceleration

My plan all along was to move back home. I've been monitoring real estate listings for a few years now - mostly in the off chance that I find a deal too good to pass up. I guess my original plan if I found such a property was to rent it out until I was ready to move home. Well, one day in late May a perfect house came up for sale.
I know my hometown better than any other place on earth and have extremely specific locations that would be acceptable. This property was ideal! Its back yard faces the local golf course, on the same street (about 10-15 houses away) as my wife's parents' house. Less than a mile to my parents' house. The largest public park and the town swimming pool are also within a mile! The price wasn't unreasaonable, but wasn't a good enough deal to get me to move back home. I thought about making a lowball offer, but that's risky if it comes too soon after a house is put up. So I waited. And hoped the place wouldn't sell. Two weeks later the price was reduced by $50 thousand! Now, this deal was too good to pass up. I called a realtor parent of a high school classmate to schedule a walk through. We saw the huge potential from the moment we walked in. The house was a short sale and nearing foreclosure, so a lot of stuff was missing and a lot of work needed to be done. Undeterred, we made our offer the next day for full asking price. The seller accepted. Now we just needed the bank to move to approve, deny, or negotiate. So we waited. We got married. We honeymooned. And we waited. Finally, in mid-August we heard that the first mortgage holder had approved the deal. The second mortgage holder had to also approve, but we didn't figure that would be too much of a problem. Boy were we wrong! The second mortgage holder wanted us to pay them $17 thousand! They should even be getting anything as the first was owed about double our offer price. We said no and sent our original offer back. Rejected. We increased our offer by $4 thousand yesterday and now have to wait for a response. The house moves to forecosure/auction later this month. We could try to buy it in the auction, but would need cash. We would have to break the news to our parents and ask for a loan. (So far we have been planning to surprise them after we closed on the deal. We're approved for the loan, but the mechanics of auctions/foreclosures in our state require full payment in 24 hours). In any event, we will try to enjoy our weekend and hope this deal happens. I don't want to look at other houses...

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