Michael Dunn's Q&A

We just successfully completed a sale with a USDA laon and from what i undrestand, there were no requirements from USDA regarding the condition of the home. However, the bank or lender will often ask for things to be repaired if an appraisal or inspection reveals habitability issues.Check at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to find out all of the property requirements.-Mike

Unfortunately I do not have access to the mls over there, so can not give you a number, but I can give you a stratagy: Call a local realtor and ask if they can do a CMA for you on that property. I often do these for free if i think that it may lead to a listing or a sale in the future.-Mike

My question for you is: Why do you want to wait? Banks are much more open to Short Sales now that the new HAFA guidlines are in place and you are likely to get just as good of a deal now as waiting until after a foreclosure or trustee sale. You might even be able to help the owner in the process.It might not even be a short sale, in which case the process will be even easier.The key is to make sure that a good attorney or title company is involved, as well as a realtor with experience in short sales. You want to be sure that you are getting a clean title and that all other liens on the property are satisfied.My advice is to not wait until every investor in the area knows about the property when it goes into foreclosure. Go after it now when you don't have any competition.-Mike

I think the best thing to do is to check on HUD's website. Here's a link to the application page:http://www.ehow.com/how_6151_apply-housing-assistance.html-Mike

Absolutely. Just check with the county records for the county that the property is in. Or, beter yet, have a buyers agent do it for you.Where is the property you are wondering about?-Mike

"Under Contract" means that an offer has been accepted by the seller, but the transaction has not closed yet. Sometimes sellers will continue to accept offers that could be accepted in a "back-up" position. Hope this is what you were asking about!-Mike

Another thing to keep in mind is that they have recently adjusted their guidlines for investment loans. Borrowers now need to have at least two years experience as a landlord to get a loan for investment property.-Mike

This is a matter of personal preference. Here are some things to think about:If you don not own the land, who does?Most likely the land will be owned by an HOA (Home Owners Association) and your rights as an owner would be similar to those of a condominium owner. The HOA will have quite a bit of authority in what you can and cannot do with the land surrounding your TH. You may not be able to have a garden for example, or walk your dog, etc. Other people may also be able to use the land if they wish. The only thing that you technicaly own is the from the walls in.If you do own the land, an HOA may still have some say in how you use it, but it is yours to enjoy exclusively. Your neighbors can't let their dogs pee in your yard. Generaly, you can make the decision as to what to do with it for landscaping, although I'm sure the HOA will have some guidlines.Additionally for myself, I like the security of knowing that I own the land that i live on. It gives me piece of mind that there will never be some other owner that can come and say, "Well it's been fun, but I'm going to use my land for something else now." As unlikely as that scenario may sound, why risk it?-Mike

Yes, if you are prepared to buy both properties. However, if you meant that you do not wish to complete the sale on the first home, and would rather purchase the second...then it depends. In Colorado, the commision approved contract is somewhat buyer friendly in that it alows for a number of opportunities during the due deligence period for a buyer to evaluate the property and if it is found to be un-satisfactory, allows for a buyer to terminate the contract without loosing his/her earnest money. This due deligence period is for a specific period of time, so once the final deadline has past, you are commited and if you do not proceed with the closing of the transaction, your earnest money may be kept by the seller.So, at least in Colorado, if you have not past your final deadline, you could terminate the first contract and proceed with the purchase of the second.On an ehtical note, most people assume that when a contract is signed, barring any un-forseen circumstances or problems with the property, that the parties will proceed in good faith and fulfill their obligations as laid out in the contract. Simply put, I would recomend that you deal fairly and openly with the other party of the first contract and try to work something out, before getting involved in another contract.-Mike

If you haven't missedor been late on any payments, they can't report it as delinquent. If you are participating in a loan modification program with the lender, make sure that you stay current on your payments throughout the process. The loan modification in itself, shouldn't hurt your credit. Also be sure that you are dealing directly with your lender, as there are alot of sneaky scams out there that appear to be offering things on behalf of your bank or lender, when in reality they have absolutely no affiliation. I have heard of some scams that are actually encouraging owners to let their mortgage become delinquent in order to have more leverage with the lender. THIS IS A HORRIBLE IDEA. Just make sure you are dealing with your lender, and that no matter what, you stay current on your payments.-Mike