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Monday, December 3, 2012

Cautiously Optomistic

So much has changed since last week. Do you believe in second chances? How about third? Do you believe that even when all the odds are against you, and the numbers do not add up, that suddenly you find yourself either outsmarting or beating the odds? That is what seemingly has happened this past week. But let me re-cap....  If you have been reading the posts for the past several months, you know that it seemed getting a house was not in the cards for us, with hedge funds, investors with cash and flippers out there no matter what we bid we got out bid nearly as quick as we could cross the T's and dot the I's . I shared with you that the last house that we looked at, liked enough to put a bid on had once again been targeted by a cash buyer, so we were debating on if we should take a break or keep looking and trying. We also were in the process of applying for another loan with a couple local lenders and the numbers were not where we were expecting or wanting them to be. With nothing going our way, we basically had decided to take a break until late June, and I fully expected to be doing a post today about that decision and how I was handling it. Imagine my surprise that is not the case. 

This past week, while still looking at the portal, and being so very discouraged, this house, the house we call the "cottage on the busy corner" popped up. It was back on the market, the cash deal had fallen through. I called our agent and before I could even get my sentence out, he said that they had a back up cask offer and that we would still be kept as back up, but that odds really were not with us that another cash offer would fall through as the last one had. That the owner wanted cash because he/she wanted a quick close.. it was not about the bid amount. The sale and close on this home was determining another purchase the owner was making. I agreed to look at a few properties on my "reject list" , then quickly changed my mind and told my agent I was just not motivated in doing so, that I had hit that wall again, that I did not want a "reject" as my future home.  I shut down the portal and took a pj day. That was that, or so I thought, and my heart hit the floor. 

A day passed. Maybe two, honestly as I had not been sleeping, and had been so stressed, I was loosing days and hours and even minutes.  I was in a deep dream filled haze, snuggled deep in my covers and I heard my phone ring. I ignored it. They could leave a message. They did. I struggled to become awake and to move out of my warm bed, slipped on my slippers and shuffled to the kitchen where my phone was charging. I picked it up, listened to my messages and it was our agent... something about having a third chance at the house on the corner and to call him.... the call was broken up, his reception is always bad, but there was a text message too.... I immediately tried calling... voice message.  I paced back and forth and rubbed my eyes, washed my face and waited for the phone to ring. It was not a long wait. Turns out he had been on the phone with my hubby and said I was not answering, and then mid call to him my call came in. Apparently, against all odds, the second cash offer had fallen through... we had another shot. One hitch, we had to apply with and get pre-approved with the owners lender, after which if we wish to switch to our own lender, with whom we had just gotten a new pre-approval letter from, that would be fine. Of course I agreed and our agent said that my hubby was already contacting the newest lender and giving them all the financial information that they would need. The wait began. Most of the day passed. Finally the email and phone call we had been waiting on, we got pre-approved for the amount that we needed. Our agent had already contacted the owners agent and stated such and fully accepted us to be golden... however, another hitch, NOW we had to go with the owners lender as our lender on the home, there had been another offer made, as the agent for the owner had re-listed the house for the brief hours it took while we were waiting on the word from the lender! If we did not go with his/her lender they would take the other offer. Our agent sent an email, a text and left a message and said we would do as requested.... with that were in contract! Offer on the 9th house bid on accepted. 

Of course as you can imagine, we are all cautiously optimistic. The last home that we were in contract with, and it seems a lifetime now, feel through due to a funding issue in the "eleventh hour" . Considering that we in the last week applied with three different lenders including the one that owner demanded us to go with, and each one came back with a different number, one at 122 thousand, one at 133 thousand... both with us putting not the normal FHA required 3.5% down, but instead 5% down to make the numbers work, to be funded by FHA, and then the newest one coming in with the same amount as the second, but only the 3.5% down, where the other two said that would not fact impossible was the word they used. I am feeling on shaky ground ; I am sure you can understand why. The one great difference is coming up with another 1.5% of the offer price, or even a full 2 percent if need be is possible for us. It would be VERY tight and clear our accounts out, but we could make it happen and we could recoup after we closed with in a few short months. So that does ease some worry I suppose. However that is just one of the hoops my friends, if you have ever bought a house through FHA you know that first it has to get through FHA inspection and appraisal and if there are any flags aka " fix it's", that is all on us to do the repairs and then we have to pay for the appraiser to come out again, delaying things... it happened with the first home. Another road block is if the house does not appraise for the loan amount and suddenly either the owner will not work with us or we need to make up the difference , that could cause us to loose this home as well... we can not swing 5% , all the fees for inspections, repairs if any are needed and make up the difference as well... plus after there is move in costs such as a moving truck and appliances! It adds up quick and we have called in all the favors money wise that we have access to.  The other hurdle and because this is an older home, 1940 to be exact, though remodeled in the last year, is the actual inspection that takes place on Friday, independent from the FHA inspection/appraisal. Gracious only knows what could possibly turn up....not that I wish to jinx it of course, but it is a nail biter to say the least!!! Just because something does not show up on the surface, does not mean it will not when an inspector digs deeper. 

Now that I have caught you all up on what has transpired this week, you will have to wait, right along with me, to see what happens with all the inspections and appraisals.  In the in~between I plan to post an extra post or two.... one sharing photos from a recent Christmas time outing,  and another, well another if the mood strikes me.... so stay tuned. 

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