Advice....
- Thread starter Baja28
- Start date
Chasey_Lane
Salt Life
Buyer typically pays closing costs but you can negotiate. If I remember correctly, it's around 3% of the procurement cost.I'm going to buy another house to rent out and have a few questions. I found one in Alexandria, VA. Short sale.
Who pays what for closing costs? It's been a long time since I closed on a house, what are the costs and who pays them?
Anything else I should know? TIA
If the lender knows it is an investment property and you plan to rent it out, you'll probably be required to put more money down on the property. Typically it is at least 20% (in Maryland at least) give or take.
Know the rules for rental property where the home will be located. Some HOAs do not allow this.
We have rental property so if you're interested, I can send you all the forms and such I use.
Be sure to do credit, background, reference and employment checks -- I cannot stress this enough!!
awpitt
Main Streeter
Here's a link to the HUD-1 Form which is used in every house purchase in the U.S. It breaks everything down. Keep in mind that there is no set rule on who pays what. That is determined by what is negotiated and specified in the contract.
http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf
http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf
Baja28
Obama destroyed America
Thanks for the advice.
Since it is a short sale, I'm negotiating with a bank who holds the note. There is no HOA. I have plenty of cash for the down payment.
I know the renter personally, a dear friend who if they defaulted, I would just make the payment since I ultimately own the house.
The location dictates that it will GREATLY go up in value due to BRAC. Win/win for me.
Since it is a short sale, I'm negotiating with a bank who holds the note. There is no HOA. I have plenty of cash for the down payment.
I know the renter personally, a dear friend who if they defaulted, I would just make the payment since I ultimately own the house.
The location dictates that it will GREATLY go up in value due to BRAC. Win/win for me.
sockgirl77
Well-Known Member
Be prepared to wait a few months to get an answer. There's nothing short about a short sale.
glhs837
Power with Control
Baja28
Obama destroyed America
60-90 days.
I'm buying in Alexandria. Ft. Belvoir. There is a shortage of houses now.
Update: They already received five CASH offers all substantially above the asking price of $300K.
Off to keep looking...
sockgirl77
Well-Known Member
camily
Peace
Ours took 6 months to the day...IF you're lucky. Realtors always use that timeframe and it rarely happens.
BadGirl
I am so very blessed
Our short sale took from February to a closing in November. Even after placing a full price offer of their asking price, the house actually was bought for $15,000 more than our original offer. And because of the bank dicking around like they did, we lost out on the $6,500 tax break that was going on at that time.
All in all, the short sale process was miserable, and I'd likely not do it again. We got the house that we wanted in the location we wanted, but I think that we'd have been happy at just about any house.
All in all, the short sale process was miserable, and I'd likely not do it again. We got the house that we wanted in the location we wanted, but I think that we'd have been happy at just about any house.
camily
Peace
I agree 100%. It was grueling. There were days I just wanted to quit, and cry. We met all the conditions they made in their counter offer and it still took forever. The bank (Chase) dicked around on us also. Funny thing with short sales is that the listing price really means nothing. The bank has the final say. We ended up paying $5,000 more than they were asking BUT like I said, they payed all closing and no down payment. We used a USDA rural development loan.
sockgirl77
Well-Known Member
I just went through the short sale crap. After 90 days I passed because I didn't know what was going on with the furlough.
The new girlfriend?
camily
Peace
sockgirl77
Well-Known Member
Baja28
Obama destroyed America
Nope and she's history too.
Oh Mike, this stopped being about you a long time ago.
