Yes, there is more to the story. There is two parts, because not only did we sell our house, we are also trying to buy a house. Key word, trying. The stories overlap, but it was easier to tell the sale story separately from the purchase story.
While our house was for sale, we started looking at properties because we knew we wanted to move out of the city, and we wanted an acreage. So we started looking at acreages outside of my hometown so we could be closer to my parents and other family. We came across this great 5 acre property just 20-25 min from my parents, and only about 5 min to the closest town. It was close to the highway, so it was easy to get to, and it had a house on the land instead of a mobile home. It was the dream property we’ve been dreaming of and praying for all these years.
The catch?
It’s a foreclosure. We prepared ourselves to look at a house that would need a lot of work, but the bonus was that it was the size of land we wanted and within our price range. Well, we were right; it does need a lot of work. But, the work is mostly cosmetic. The foundation and bones of the house was good. It just needed to be updated and several minor things fixed. It was awesome going into the house and seeing that someone had a party after the previous tenants had been evicted. Some of their things were left behind, and someone decided it would be fun to break all the remaining dishes and push the fridge over. The perfectly good working fridge that now needs a new door or be replaced. They even broke the lock on the back door. The good news is the management company hired to look after the property cleaned all their junk out for us. One less thing to do.
No big deal, we can handle the renovations. The property already has fencing and a barn which will save us a lot of money. But because it’s a foreclosure it has to go through the courts. Before we sold our house, we thought we had lost our chance. Someone had made an offer and our place still hadn’t sold so we couldn’t try and compete with them. It was just too risky. Finally our house sells and we notice that the property is still listed. So we call our realtor to have him check, just in case. Turns out, the previous offer had backed out,because they wanted a financing condition or something similar. It wasn’t going to work for them, which was perfect for us. So we made an offer and it went to the courts. The courts approved and gave us a possession date of May 24. Notice that today is June 11 and we still do not have our house…
So we start to jump through hoops with the bank. We are approved, but there are some reservations and concerns about the property itself. We are getting the mortgage insured, so they have to approve the application as well.
They want an appraisal. We wait for them to get the appraisal and then we get the news that the appraisal came back at $10 000 less than the purchase price, and they don’t want to touch the property. The answer was a big fat NO. So now we try another mortgage insurance company, because that appraisal was a joke. Thankfully the new company is a little more flexible, or so we thought.
They want the house inspected. Okay, but remember people, this is a foreclosure deal through the courts. It is an UNCONDITIONAL offer. So backing out isn’t really an option. I can’t count how many time we had to say this over and over.
We get the house inspected by someone my dad knows and trusts. I warn the bank that it’s going to come back with a list of things wrong. The house is old and needs work. Are you going to freak out at all the little things that need to be done? They assure me that they are mostly looking for big things like foundation, mold, leaks and roof. The big stuff. So I warn them again, the roof needs to be done. We plan to do it right away, but other than that, that should be the only big thing.
The inspection comes back. Exactly what we expected it to come back us. A lot of little things, which we are prepared to fix, it was a relief. Except they get more worried. Whose going to fix everything? How will you pay to fix it? Blah, Blah Blah. Now we want you to get a quote of what it will cost to have everything under the defective part of the report.
*sigh
Ok.
At this point I believe we were at one or two days till our possession date. So we are also trying to get an extension from the bank selling the property. Their lawyers agree to give us until the following Tuesday or they will start charging us interest. Ok, fine, fair enough. So we get the quote done. Hubby does it, because he’s qualified, and plans to do the work himself. The plan is now to do a mortgage plus improvements.
We give the quote to the bank and they share it with the mortgage insurer. A lot of silence with us being told that there is now a lot of back and forth within the bank, instead of the insurer, because the insurer wants the bank to guarantee the property, that it will be up to code and marketable. This puts the risk back on the bank, which kind of defeats the purpose of getting an insured mortgage.
We are now past our possession date, and we get the news. Go to the bank that owns the property and have them finance it. We no longer want the risk of the property, and if we tried to go any further it would just be more of a headache for you. Just go somewhere else. ( they were also concerned that if hubby was going to do all the renos, what happens if he breaks his leg or something? Then who will do it? It was hard not to reply, “What if the world ends tomorrow?? Or we die in a freak storm or car accident??”)
You’re KIDDING…
After all that, and we are now past the possession date, we were pushed out the door. This is also happening the same week we are getting out of our current house. Awesome. We don’t even know the name of the bank that does own the property. So we decide to go through a broker our realtor recommends (the good one, not the one who sold our house). She starts the application and we go to the lawyers to sign papers for the sale. They tell us that the bank that owns it is some trust company in another province.
Even better! Not even one of the big 5? That would have been too easy.
So we start the process all over with the broker, and it is dragging… We try to go through the same mortgage insurer again. Things are going well with the new bank. They are wondering why the property is priced so low.
We know! That’s what we’ve been saying! The first appraisal was in no way close to what this place is worth. It’s not a dump or anything, just needs some TLC.
Now this mortgage insurer wants another appraisal done. Another one…Seriously I’m hiding under my bed covers at this point not wanting to ever join the world again. Right I have two kids. Still have to take care of them.
Appraisal comes back and we are informed they won’t support the purchase price anymore unless it gets lowered by at least $10000. (Insert scream and bad words here)
The good news though is we recently learned that the selling bank was willing to lower the price if that would help us get financing. Something our realtor has never seen or heard of happening. So we are still fortunate. I guess….
This is where we are at now. We now have to go back through the courts to lower the price. Lawyers are trying to go to court today and push for a possession date of June 21, 5 weeks after our original possession date. The other good news, we know the bank and the mortgage insurer will back up the lowered price and approve it all, so we should get our funding on time this time. We just need an amended purchase agreement from the courts.
This is why I want to be a hermit, and just hide from the world. I’ve been doing a pretty good job too. If I ignore you, don’t take it personally. Just means you are the tenth person to ask if we have a house yet. Nope, but I will tell the world when we do, because maybe I’ll feel like joining the world again.
I feel ten times better after writing these two posts, and even feel a little inspiration happening. Maybe I will get some writing done and can share more of my book that I finished editing yesterday! Well spell check at least.
alisabarnim 