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    14 Replies Latest reply on Jul 31, 2008 6:27 PM by afsn1766

    Need $415,000.00 ASAP - I'm Already Under Contract

    GoodGuy Newbie
      So, I make $100K today, $110K on 8/1/08, and $125K on 10/1/08 for a company I've been with for 3 years as of 10/1/08 (my starting salary was just $50K, so I've made signicant progress and have much more room to grow). I'm a lawyer. My wife makes $135K today, $150K as of 8/1/08 and she'll make approximately $250K as of 8/1/2009 (she's the 10th doctor in a group in which she will make partner, by contract, as of 8/1/09). We have $54K in the bank today because I've been a lawyer only 3 years, and she's been an attending physician only 1 year. My credit score is apprx 800. Her credit score apprx 750. However, we also have substantial combined student loans of about $230K, unsecured debt of less than $25K, and a current mortgage of less than $200K on the house we now own.

      We want a magnificent new home of 4700+ Sq. Ft. of living space. It's a builder's model. It should appraise for no less than $484,000 (my most conservative estimate based on past experience as a Tax Assessor prior to law school at UCLA, plus having looked in the local market for the past year). The builder claims the house is worth $502K. We agreed to purchase for $415K, which is frankly a heck of a deal no matter who appraises.

      The catch? The builder wants to rent the house back from us for a lease of $3,948 per month for approximately 1 year to 18 months, perhaps a bit longer, at the builder's option. That amount represents what the builder believes should be necessary to pay the taxes, insurance and loans, plus the builder is liable to perform all maintenance and repairs. The builder wants to use the house to continue showing it to prospective buyers in the subdivision. Therefore, we can't buy without an "investment" loan, because we won't take immediate occupancy, and we're being given different stories and a moving ball by the builder's recommended mortgage company. When we signed the contract to purchase, we were assured (after a phone call between the builder and the mortgage company) that we would qualify with just 5% down. Now, we're being quoted 10% down. I'm worried the quote will also go up before closing, which is supposed to be Sept/Oct '08 time frame, and we frankly don't have any more money to put down. We also don't want to lose our $10K in earnest money already deposited.

      So, I want to borrow money from somebody for no more than 10% interest. The loan would be structured as a 30 year mortgage, but there would be a mandatory balloon payment due on or before 24 months, so really the money would be for no more than 2 years, unless the lender has a better idea. Both my wife and I would sign on the dotted line. We each carry substantial life insurance, and we will also authorize direct debit from our account. We just need to make sure we've got a lending committment from somebody who will take a chance on people who have gone to schools like Harvard, UCLA, USC, and don't forget...the lesser known Ivy League School I attended for undergrad...Idaho State University. :)

      Please help my wife and I secure our dream. We're good for it if anyone in this world is. Please call my cell phone at (585) 621-8000 if you can help.
        • Re: Need $415,000.00 ASAP - I'm Already Under Contract
          LUCKIEST Guide
          I'm Already Under Contract, Welcome

          WOW, it sounds like you guys are chasing the American Dream

          Good luck
          • Re: Need $415,000.00 ASAP - I'm Already Under Contract
            willemfinance Newbie
            My name is Willem Roeloffs. I have been arranging loans for many years. Since I do all the work myself and have no overhead, I am able to arrange better loans for my clients. Working with me will be close and personal. I am available seven days a week to facilitate your loan request.If you are interested,I am very confident that I can arrange your loan at a better interest rate and lower cost than anyone else in town.when contacting me please include the following details

            Your name
            Contact address
            Telephone number(direct number)
            Fax number(if any)
            Purpose of the loan
            All request should be sent to my email address at info@willemfinancialservices.net
            • Re: Need $415,000.00 ASAP - I'm Already Under Contract
              DomainDiva Ranger
              Not to rain on your parade here...there are too many what ifs', and more turns than the Indy 500. You need to get a real estate attorney. It's obvious that you are not using an experienced real estate agent and it seems like this particular builder seems to be dangling this carrott in front of you.

              It's nice that you want your dream house...but there are a lot of warning bells here that you may not be listening to. The builder is cutting the sales price by over 20% ..... something is not right. What I think is not right is that this builder does not have enough money to service the debt on this property, he will sell at a 'loss' (yeah right..) and then lease back from you. All you have to do is 'whatever it takes to get him HIS MONEY'. Odds are after a few months...this 'lease agreement' will disappear and then you are going to be in trouble. The bank smells trouble as well.

              Think again. Is this house worth all of the potential trouble? Get an attorney to get your earnest money back if you have to.
                • Re: Need $415,000.00 ASAP - I'm Already Under Contract
                  GoodGuy Newbie
                  Domain Diva, You clearly didn't read the post and/or you just don't get it. First, I am an attorney, and a diligent buyer, so I know what the law is with respect to earnest money in New York. Second, I was previously a tax assessor for a number of years, and given that I've personally placed values on several billions of dollars in real estate, I can assure you that the price for this house is absolutely right. The reasons the builder is making such large concessions include: 1) it wants to get out of its construction financing while it still controls the model; 2) it wants to project that the homes in the new subdivision are selling like hotcakes, including the statement that the model itself is already sold; 3) it recognizes that at the price point at which I'm buying, very few people are willing to wait for a year or so, at the builder's option to extend for an untold number of months, before the buyer takes physical possession of the home, which is a single family property, not a traditional investment vehicle; 4) it recognizes that at the price point I'm buying, very few people have the credit and income to hold multiple properties at the same time, such as the way I am going to have to continue to hold my current home (and mortgage) as my primary residence while I wait for the builder to take its sweet time and get out of my future residence (for which I am liable on the mortgage if the builder defaults on the rental agreement). All of these factors, and several others which are less obvious, justify a significant discount in the price. In addition, the housing market is still falling, and the builder knows that I have to be induced within that context. Again, the discount is appropriate to the deal's structure, but it just so happens to work for me (an atypical buyer) because I was only planning to build or buy after a year or so anyway. With regard to your statements that "it's obvious not using an experienced real estate agent," I can only surmise that you are a part-time and/or semi-successful agent yourself, or you have been in the past. Nobody else would be convinced that the only way to buy a house is through an agent...as if nobody in the market could be sophisticated-enough to do a legitimate deal without an agent. That would be like me saying that everyone needs an attorney for every contract they enter, which clearly some people do not, especially people who are themselves experienced in the type of contract at issue. Please also note that I obtained an additional 3% off the sale price (yet another reason the price is discounted) because I didn't use a real estate agent, as the law clearly allows me to do in New York. I actually used the fact that I wasn't working with an agent to negotiate a deeper discount than was already available. So, for a lot of reasons, your post has been completely unhelpful. You also didn't address the real need indicated in my post, which is that I am seeking to connect with people who can help me get financing, which you clearly are not. Therefore, everyone else is invited to keep responding to my post, and I do appreciate their responses, but "Domain Diva," please don't waste any more of my time.
                • Re: Need $415,000.00 ASAP - I'm Already Under Contract
                  loanguy Newbie
                  Could you identify the city and state in which this home is located?
                  • Re: Need $415,000.00 ASAP - I'm Already Under Contract
                    afsn1766 Newbie
                    0.3% financing
                    email for application
                    afsn1766@yahoo.com
                    no advance fees
                    • Re: Need $415,000.00 ASAP - I'm Already Under Contract
                      afsn1766 Newbie
                      0.3%
                      no advance fees
                      application
                      afsn1766@yahoo.com