[audio-pals] Re: Older Houses
- From: Thomas McMahan <shadowmonstrosity@xxxxxxx>
- To: audio-pals@xxxxxxxxxxxxx
- Date: Thu, 12 Mar 2015 15:16:09 -0500
Yes. I am suspicious about this too even if they are 2014’s taxes and 2013’2
taxes and 2014’s are due this year like here, why are they two years behind,
and is the mortgage behind too?
Yep better do some digging on this one.
Also Josh, check with your State here in Illinois they have what is called
Homesteader’s Act, which reduces property taxes for people with disabilities.
It’s not a big reduction, but any reduction helps. Here it’s done through the
County. We got Pat’s sister in on that too since she draws SSDI. Maybe your
State doesn’t have this though, but might want to check and see.
> On Mar 12, 2015, at 2:56 PM, BethAnn LaPresta (Redacted sender
> "bela28_02@xxxxxxxxx" for DMARC) <dmarc-noreply@xxxxxxxxxxxxx> wrote:
>
> This would HAVE to be disclosed to you by the sellers at the time you placed
> an offer (if you were going to). When the agent selling a home takes the
> listing, they usually "open" title with a title company that would spell all
> of that out. So, everyone should be very aware of this...if your agent isn't
> yet and you are interested, I would ask her. This becomes a negotiating
> point. The seller is required to sell you a home with a clear title, if the
> city and/or county has placed a lien on the property (or anyone else for that
> matter), this would be something that you must insist is paid up before
> closing. It may also be something that you negotiate in as far as you guys
> may be willing to pay the back taxes, but it will come out of the proceeds of
> the house. Honestly, this one sounds a little scary...why are they behind?
> Is the mortgage also behind? Are they in foreclosure yet with the lender?
> Are they going to do a short sale? Lots of questions if you're really
> interested.
>
> From: Josh <lawdog911@xxxxxxxxxxx <mailto:lawdog911@xxxxxxxxxxx>>
> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
> Sent: Thursday, March 12, 2015 12:22 PM
> Subject: [audio-pals] Re: Older Houses
>
> Hey this may be a question that you can answer here, I was doing some rsearch
> on the property that Amanda and I are potentially interested in. Well, I
> called the city tax office and found out that this property has both city and
> county taxes which I already knew. However, I also found out that they are
> upside down in their taxes. I found out the property owners are two years
> delinquent on their taxes at both the city office and the county office. The
> city office mentioned that I would want to go through a title company to
> purchase this property. I do not know why the title company was recommended
> though. Do you have any knowledge regarding properties that are delinquent on
> their taxes and up for sale?
>
>
>
> From: audio-pals-bounce@xxxxxxxxxxxxx
> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>
> [mailto:audio-pals-bounce@xxxxxxxxxxxxx
> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>] On Behalf Of BethAnn LaPresta
> (Redacted sender "bela28_02@xxxxxxxxx <mailto:bela28_02@xxxxxxxxx>" for DMARC)
> Sent: Thursday, March 12, 2015 3:01 PM
> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
> Subject: [audio-pals] Re: Older Houses
>
> I found a 3% down program in 2011---you had to have a 680 credit score or
> better at that time through my credit union. A true conventional loan is 20%
> down, but there are exceptions depending on your bank. There are also a lot
> of low down payment options for first time home buyers, so it's good to check
> around.
>
> From: Josh <lawdog911@xxxxxxxxxxx <mailto:lawdog911@xxxxxxxxxxx>>
> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
> Sent: Thursday, March 12, 2015 11:45 AM
> Subject: [audio-pals] Re: Older Houses
>
> That sounds about right, since the lender has only talked about that option.
> However, if we end up getting a house that is around 100 K then we may be
> able to do conventional. Conventional requires what 10% down or 5% down?
>
>
> From: audio-pals-bounce@xxxxxxxxxxxxx
> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>
> [mailto:audio-pals-bounce@xxxxxxxxxxxxx
> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>] On Behalf Of BethAnn LaPresta
> (Redacted sender "bela28_02@xxxxxxxxx <mailto:bela28_02@xxxxxxxxx>" for DMARC)
> Sent: Thursday, March 12, 2015 11:11 AM
> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
> Subject: [audio-pals] Re: Older Houses
>
> I am fairly certain that with an FHA loan, you will have the taxes and
> insurance in your monthly payment already.
>
> From: Josh <lawdog911@xxxxxxxxxxx <mailto:lawdog911@xxxxxxxxxxx>>
> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
> Sent: Thursday, March 12, 2015 3:40 AM
> Subject: [audio-pals] Re: Older Houses
>
> Well, before we decide that any house is the house we want, we make sure that
> we can afford it with the rest of our bills. As far as escroe goes we have
> not discussed that so that is something that we will have to discuss as the
> time draws near. As I read on down through your email it appears that we have
> discussed the whole escroe aspect. We definitely have had each payment
> considered with tax and insurance in mind with the payment.
>
>
> From: audio-pals-bounce@xxxxxxxxxxxxx
> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>
> [mailto:audio-pals-bounce@xxxxxxxxxxxxx
> <mailto:audio-pals-bounce@xxxxxxxxxxxxx>] On Behalf Of Thomas McMahan
> Sent: Thursday, March 12, 2015 4:58 AM
> To: audio-pals@xxxxxxxxxxxxx <mailto:audio-pals@xxxxxxxxxxxxx>
> Subject: [audio-pals] Re: Older Houses
>
> I accidentally hit the send before cleaning up that mail darn it.
>
> Here’s another little exercise to work on. Lets say you guys decide to go
> for this house. You should have a ballpark of the monthly payment. Sit down
> and plot out a budget around it on one paper, as well as a list of possible
> repairs to do on another list and their costs. Yes a house payment can be
> cheaper than rent, but their are other realities such as the taxes, and
> insurance. Are you going to escrow your insuranc and tax payments into your
> house payment? Most people do that and it usually works out well until they
> assess your house taxes up and then you have to make up the short fall. Of
> course if they assess them downward you get a chunk of money back in the mail
> like my sister-in-law has done the past two years. I didn’t escro my other
> payments. I deal with insurance as I would any other utility, and we would
> do our taxes on our own. Because of that I now pay my insurance once a year
> and it’s cheaper, and once the house was paid for there was less entanglement
> with the bank. I even removed the automatic withdraw for house payment
> because they double dipped us a couple of different months, and didn’t have a
> very good explanation as to why. So it put us into over draw land, which
> isn’t a place you want to be. They did the same to my sis-in-law too and she
> went in and practically threw a fit because she wasn’t working at the time
> and didn’t have income yet. They refunded her money on that one, but as she
> asked them, “now how am I supposed to pay the rest of my bills? You think
> you guys are my only bill to pay?” Banks and their computers can be sloppy
> sometimes.
>
> Now when you do your budget here’s another game to play which may be
> beneficial. Can you run your whole budget on one income? Everybody that
> lives as a couple should do this whether renting or paying for a house. Most
> of us find we can’t, but it is a nice goal. The guy we had going along with
> us to check out houses etc and sort of pointed and guided us along through
> the process gave us that little bit of wisdom. As he said, what happens if
> Pat loses her job and can’t get one very fast? Can you live on just your
> income alone, because if you can get to that point, then you can start paying
> extra against your house on it’s principle and have more paid off faster
> which is good for the credit rating, but if you decide to move in 20 years
> you are carrying less of a load thus will get more money back to leverage
> against your next place should you decide to do that. Or you can both pay
> some extra on house and car, then put the rest in the bank against major
> repairs which are going to come even if you buy a house that was built today,
> in 30 years you will have to had to replace things, they just don’t build
> stuff that good anymore and sometimes that includes homes btw.
>
> Lots of decisions, but at least it looks like you guys aren’t just jumping
> right and grabbing what shines in front of you which is good.
>
> Btw, I don’t think our budget is currently within the lowest income level of
> the house here at this time which would be Patti’s income, although it’s not
> way above that amount. It is a good goal to work for actually, so we will be
> able to start seriously working on this place. Get a lot of little stuff
> done over time, then do a loan down the road and fix the major stuff such as
> re doing the roof etc. I don’t think I am going to lift the house and work
> on foundation, but it would be nice to do actually.
>
> But it’s a good exercise to do. I would run it on your income Josh because
> it is likely to always be there and Amanda’s income is the variable one, it
> can be lower if she’s out of work, but can also be a lot higher should land a
> great paying job. Drop in everything, credit cards the whole deal, then
> figure out once you get to where you’re going which angles to cover and get
> paid off in the budget.
>
> I am guessing you guys have done some of this already though in preparing for
> checking out the housing market and talking to lenders because they are going
> to do roughly the same thing when checking your credit etc. Especially if
> it’s a conservative bank.
>
> Now I think I’ve completed all I was going to say. Took two e-mails, but if
> I had been able to clean up the other one first it would have fitted into one
> probably *lol*.
>
> Instead you get two.
>
> On Mar 12, 2015, at 3:34 AM, Thomas McMahan <shadowmonstrosity@xxxxxxx
> <mailto:shadowmonstrosity@xxxxxxx>> wrote:
>
> Wouldn’t worry about a house on market for 5 months. Most around here are on
> a year or so. To many deals fall through each time that happens that just
> adds more time that the house is sitting there. Age, is only a problem if
> the house hasn’t been kept up and modernized over the years. There are
> people who prefer older houses simply because they are more solid. The house
> I live in was placed here in 1922. Yes it came from somewhere else. The
> house next door is older and was also brought in here from another place too.
> Fairly common in a town that springs up by a railroad. I wouldn’t worry so
> much about that as apposed to how it’s fundamentally built, there are a lot
> of newer places that are likely to give you just as much trouble if not more.
>
>
> Any house is going to have ongoing mantainence of some kind. Sided house are
> nice but siding fades over the years for example and eventually would need
> replacing. Wooden houses have their things that have to be done, and so
> would brick, but brick is the best option as far as I’m concerned accept
> maybe when a big earthquake comes, then I would favor a wooden house, but
> what are the chances of that huh?
>
> I don’t know the market down there anymore so don’t know if that is a low
> ball figure on that house or not, but I can tell you it is larger than mine
> is and mine is two stories, but so is it’s price too.
>
> Go through it with a fine tooth comb with the idea of what has to be fixed
> now, and then in the next 5 years and what would be ongoing over the years, I
> don’t think for the long term ongoing it will be much different than a 10
> year old house verses the 60 year old house, but agin it is a matter of what
> would immediately have to be worked on. When was the house last occupied
> too? A house that hasn’t been occupied for a good while can have problems
> such as drainage because they haven’t been flushed etc. It sounds like you
> already have someone with you who knows how to examine a foundation well and
> give you an idea of what would have to be done and when which is good. Same
> with tuck pointing brick etc.
>
> It may be sitting on market because folks think it’s to high also, but you
> are going to drop in a price and they will take it or leave it, or you both
> the buyer and seller will eventually come up with something in the middle, or
> the seller is going to have an empty house on their hands.
>
> What heating and cooling does it have, and when was it installed too that is
> a factor, a 30 year old furnace is getting kind of old in this part of the
> world, but most of our furnaces are gas and they do have to work pretty hard
> for a good part of the year. Does it have any chimnies, and where do they
> run through the house. Ones that run through centers of houses on the
> surface are nice, but when they have to be worked on they are a lot more
> work. Of course where you live a lot of homes are electric heat and electric
> water heat, which is another thing to add to your check list, how old is the
> water heater and when will you be replacing that. A brand new house
> obviously you would get to wait a while before doing that, but chances are
> you would have to do it eventually, or have your price knocked down when you
> are selling it, or when your descendants are selling it. But that goes with
> any house again.
>
> What neighborhood is it in? How accessible is it to you. Pretend Amanda had
> to leave town for a Month and start your math, what is easy to get to via
> walking etc. Maybe that isn’t a problem for you at this moment, but life can
> always hand you changes, and well, next thing you know, you are walking to
> the grocery store if you know what I mean.
>
> Find out what their highest bills were for each utility in the last year it
> was occupied if you can, you need that in planning a general budget. I don’t
> know your property tax situation anymore, but here they just give an estimate
> from the seller, but the problem is, that if the sell lived in the house for
> a long time you might get a little surprise when the annual taxes come.
> Our’s wasn’t a surprise because the previous owner hadn’t lived or owned the
> house for to long.
>
> So it becomes also a matter of do you get a house that you won’t have to do
> any work or as little work as possible on, verses one that may have to have
> some work done, or one that is a fixer upper. We bought a fixer upper, but
> when we bought it was a seller’s market, it definitely isn’t that nowadays,
> so we went for a house we knew we could likely get. Well the trade off is
> that it’s needed work done on it and still does actually, but likely we would
> at least get some money back when we sell it. Maybe not a lot but probably
> some when all is said and done, and of course the sell of this place could be
> the lverage to getting a better place. It’s probably what you parents did,
> if not them then your grand parents did, that is more the normal thing in
> history. Well up until recently where you have people who expect to buy a
> brand new house that is larger than what their parents owned as their first
> house. Well if it can be swung, go for it, but to me it’s a little
> unrealistic, well to my income level it is *lol*.
>
> What appliances are already there, and how quickly do you think you will be
> having to replace say: stove, washer, or more of a bear dishwasher? What
> about cabinetry etc, is Amanda happy with that, having that done can also be
> expensive unless you have someone who works with you to give you a break.
> How much stuff will you guys do on your own for modifications verses having
> to hire outsiders. So yes the advantage of a new place is that you won’t
> have to do that, but I guarantee you will pay up front for that, but that is
> why newer houses don’t stay on market long.
>
> So then it falls back to degree of work and mantainence that has to be done.
> On Mar 11, 2015, at 9:41 PM, Josh <lawdog911@xxxxxxxxxxx
> <mailto:lawdog911@xxxxxxxxxxx>> wrote:
>
> Hello,
> We are finding tons of older houses that we absolutely love. When I say
> older I am talking 1950’s. I am struggling with this a bit though because I
> am looking ahead, past when I am living there. Or rather to the point that I
> am ready to not live there anymore. So, when I get to the point of not
> wanting to live there anymore it could be 10, 20, 30 or more years down the
> road, but I am sure there will come a time that I am ready to move on. If
> this is not the case and I stay there until I die then it is not a concern,
> However, a 1950 house that I live in for 20 years will then be 85 years old.
> I know the specific house that we are looking at has been on the market for
> right about 5 months. So, what do you all think, do you think I would have
> trouble selling an 85 year old home? It is on the market for 5 months at the
> age of 65 years old. It is right about 112,000.00 right now without
> negotiating a lower price. Do you think I would be able to get my money back?
> If it is not a major concern, the age of the house, then I will not let it
> sway my decision, but taking into consideration that it is an all brick
> rancher with over 1700 sq. ft. and it is almost 100,000.00 and still on the
> market concerns me regardless how beautiful the house seems right now.
>
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