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Joseph Moore's Advice

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  • 92 Contributions
  • 4 Best Answers
  • 15 Helpful

Joseph Moore wrote:

Listing agent held up appraisal and is not answering emails - any recourse?

Answer
This is an ever to common and unfortunate situation.  It's happened to me while representing both buyers and sellers.  Since the appraisal came in low you won't be approved at your contract price.  Your appraisal and financing contingencies cover this.The seller has 3 options.  They can demand the contract price in which case you would have to decline and the deal would be dead.  They can agree to sell you the home at the appraised value and you'll get the home.  Or they could possibly try to negotiate in the middle somewhere, but being that it's VA that won't work.It's a bummer that you're out the $1500, but that's part of buying real estate.  The seller is in a worse position though.  More than likely he can only try to sell his property at the current price to a conventional buyer.  VA and FHA appraisals tend to be very similar which means the sellers will have a hard time getting a higher appraisal in the near future; thus making it difficult to sell anytime soon to VA/FHA.I'm guessing you haven't paid the lock extension upfront...?  Maybe talk to your lender about a credit towards the next purchase.  Let your realtor handle the back and fourth negotiation....You may find that the sellers realize they need to just take the appraised value.I hope it works out.Joe
February 07
(2)

How expensive is Minneapolis compared to Washington DC Metro Area

Answer
According to the CNN money calculator transportation and healthcare are only 2% more in DC than Mpls.  Utilities are about 7% more in DC.  Groceries are more in MN by about 5%.I guess it really depends what calculator you use and what your lifestyle is.  Sunnyview is correct....living in DC is more expensive.
February 07
(0)

How expensive is Minneapolis compared to Washington DC Metro Area

Answer
Depending on the exact location housing is about 35%-50% cheaper in Minneapolis compared to Washington DC.  Other cost of living is a minimal change (under 10%).
February 07
(0)

Is there a way to protect yourself when buying a home with central air in the winter?

Answer
We deal with this a lot in Minnesota.  Typically I will advise my client to request documentation on when the A/C was last serviced.  Even then you never know if it's going to turn on and function properly when the weather reaches A/C temperatures.You could sign up for a service plus program through your gas or electric company.  Many times they offer a warranty on parts and labor for A/C units and other household appliances like furnace, fridge, dryer, etc...unfortunately there is no concrete way to ensure the A/C will function properly and with that being said you may consider adjusting your offer to reflect the possibility of a broken A/C unit.  In cold climate states like Minnesota where I live you generally see a small price reduction just for purchasing in the winter as the market generally moves a little slower.Best of luck!Joe
February 07
(0)

Renting a house with an FHA loan... in reality

Answer
I'm not a lawyer so take my response with a grain of salt....With that being said;Look through your closing documents.  You should find a form titled "Affidavit of Occupancy".  This form should tell you how long you need to occupy the home before you choose to rent, etc...  Typically 1 year is expected.You should be careful if you've never lived in the property or haven't been occupying the home for a certain amount of time.  FHA is a government backed loan that is designed to help owner occupying home buyers.  This program is not for investors.  You also probably signed a federal form claiming you were going to occupy the property.  Even if you planned to occupy the home you didn't.  This may put you in the investor category.The odds of the FHA finding out are probably slim, but if they did they could demand you refinance the property or pay the mortgage down to 78% LTV.  They may be able to fine you as well.  I doubt you would be prosecuted because it would be difficult to prove you never intended to occupy the property.FHA or your lender could find out very easily if they check your home owners insurance.  If you are renting the property you need to notify your insurance company because you'll have a different policy.  Since your insurance premiums are probably escrowed your mortgage company will see the declaration change.  The lenders required insurance might not be completely fulfilled by an landlord or investor insurance policy. If you don't switch your policy you could end up not being covered.Call your title company or a real estate attorney to seek further advise.  Also, you more than likely won't be able to obtain another FHA loan for your new purchase.  You also probably won't be able to claim any rent to go against the mortgage on your FHA property when qualifying....unless you have a 2 year history and can document it.  Obviously you don't based on your questions/statement.  Again, talk to the title company, a lawyer and your mortgage banker for more information.Best of Luck!Joe
February 06
(0)

Listing Agent Refused Inspection Response

Best Answer
As-Is is what it says, but not exactly..It really means nothing.  You were agreeing to purchase the property in AS-IS condition which basically means that the seller won't be making any repairs.With that being said;  You had the inspection and realzied there were hidden defects.  The AS-IS means the seller is telling you upfront that they won't fix the issue, but it doesn't stop you from asking for a credit based on new findings.If the seller won't look at a credit then walk away from the deal.  They will put the home back on the market and you can offer lower this time....or they'll go onto the next offer and that person will have an inspection resulting in the same findings.There is nothing wrong with asking for a credit.  I've helped many clients purchase bank owned properties and have gotten credits out of inspection findings.  It all depends on how bad they want to sell the home.Use your inspection contingency to get the credit or get out of the deal. If you feel like your agent isn't assisting you properly then let them know. Being in the same office as the listing agent (Dual Agency) doesn't stop the fidicuary duty of your agent.If your worried about the price and the repairs needed then walk away.  There are other homes...Best of Luck!
October 16 2012
(1)

Is it possible to roll a home equity line of credit into a new mortgage?

Answer
The short answer is No.  The line of credit is secured by the property and I don't know any banks that would transfer the liability to a new property.You could always pay the line of credit off with a personal unsecured line of credit, but the interest rate will likely be higher.If your selling the property then all liens need to be paid off prior to transfering equitable title.  You should speak with a local realtor in your area along with a banker.Best of Luck!
October 16 2012
(0)

Refinancing and purchasing another home

Response
I have a client in a very similiar situation.  Talk to a banker in your area and seek there advice.  A good banker is well equipped to handle this type of situation.Best of Luck!
October 16 2012
(0)

the owner of the house im renting brings people to see the house who might be future buyer. legal?

Answer
Wetdawgs is right.  You can also check your lease.  If you have issues with him showing the property ask him for more notice or just on certain days.  A landlord typically doens't want to upset  tenants when trying to sell or re-rent the property.Good Luck!
July 17 2012
(0)

how do I go about co-owning a house that my parents currently own?

Answer
I'm not an lawyer or banker, but you might need to buy the home from your parents and have them go back on the title through the transaction or at closing, but understand that a lien will be on the property.Your other option may be a cash out refinance in which you take out the loan only in your name on the refinance and they get the cash from the transaction thus giving you a stake in the property and giving them the money.Talk to a banker.
July 17 2012
(0)