It’s been a while since I’ve posted…not so much because there’s nothing going on, but more because everything seems to be moving very slowly these days. But, here’s a general overview of what’s going on with the business:
As I mentioned a couple weeks ago, the lender for The Fourfecta House went out of business the day before we were to close on the house. As we hoped, the entire loan team (including underwriters) was able to move over to a new direct lending company, and has been working to get approval to work with the downpayment assistance program the buyer is using for part of his financing.
We were originally told that we should be able to close by the end of November (today), which obviously didn’t happen. We’re now being told that we should be able to close by the end of next week. Considering we’re leaving for vacation at the beginning of next week, it doesn’t leave us much of a window, but we’re hoping to close before we leave.
The buyers for The Waffle House completed their inspections over the weekend, and sent us their list of requested repairs. Luckily, the list is short and the repairs are minor — replacing a few window screens, fixing a loose hinge on the fence gate, fixing the weatherstripping on the garage door, supplying a fireplace grate, and fixing reversed hot/cold water lines on two of the faucets.
The lender ordered the first appraisal today, and hopefully that will take place before we leave for our trip next week. Currently, we’re still on track to close before the end of the year.
Offers & Contracts
We’ve made lots of offers over the past month or two, and have actually gotten several properties under contract, but nothing that’s panned out. Here is a quick run-down:
- I mentioned the potential House #28 a couple weeks ago. Ultimately, the bank agreed to a $3000 price reduction and a short due diligence period. During that due diligence period, we found several issues with both the foundation and the house’s brick facade that would have increased the renovation costs by a good bit more than that $3000 reduction. So, we choose to terminate the contract
- We received word from HUD that a property we had bid on several weeks ago had come available again and that they had awarded us the contract based on our old bid. We had two days to submit the finalized contract if we were interested in the property. During that two days, we discovered that the county tax records were incorrect in their flood zone classification for the property, and that the house was in a 100 year flood plain. While we were trying to decide if we still wanted to go through with the deal, we received another email from HUD telling us that they had made a mistake, and that we hadn’t actually gotten the property.
- We’ve been working on a short sale deal for about two months now. The house is scheduled to go to the foreclosure auction next Tuesday, so that was the deadline for getting the deal done. The first mortgage holder approved the deal about 6 weeks ago, but the second mortgage holder has been holding out for more money. They apparently decided today that getting a little bit of money through the short sale was better than getting nothing through the foreclosure, and it sounds like they’re going to sign off on the deal tomorrow. Hopefully they will…and hopefully we can get title pulled and closing scheduled before the foreclosure.
- We currently have about a half-dozen other offers in on properties, waiting for responses from various sellers. Hopefully we’ll get at least one or two of these, as things are pretty slow around here these days and we’re looking forward to our next projects.