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Save me from financial ruin!!!

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Re: Save me from financial ruin!!!

Postby eclecticcottage on Thu Aug 23, 2012 3:53 pm

Wow, that's pretty cheap. Relatively speaking compared to the size of the house of course. The cottage we were looking at went for either 22 or 23K. I still can't believe that one.

Another thing to check into, should you come across another one you might want to save ( :D ) is to see if the city has any notices against it. The cottage we were interested in is on a "nuicience property" list with the town. In other words, better fix it or tear it down pronto. We weren't concerned though, because we figured we could talk to the town about our plans and let them know as soon as we had the deed we planned on cleaning up the property and at least securing it for the winter.

Also, most sales like the one on the house you are looking at are buyer beware. You get a quit claim deed, and no guarantee of a clean title (there may be other liens on the property). You could be responsible for back taxes, utilities like water and sewer, or other claims against it, like an IRS lien (the IRS has told us they have an exclusive ability to completely "clean" a title and wipe off all other liens-but I'd talk to a lawyer to be sure about that one). At the tax auction we looked at, the property gets struck down and you pay a deposit-BUT you don't own it until the county approves the sale, usually a few weeks later. In between, it's in limbo-and if it burns down or the PO destroys it because they're mad, you are still responsible to pay the rest of the $$. The auctioneer also stated that personal property left behind ISNT part of the sale and you are legally responsible for making efforts to allow the Po to claim it. You also need to check into easments, etc. It's quite different than buying via a "normal" sale!
The Cottage Blog: http://eclecticcottage.blogspot.com/

Current home: 1950's Summer Cottage turned year round home (the Cottage)
-@ 700 sq ft, heated with a wood stove, on the shore of Lake Ontario
Previous home: 1920's Vernacular (the Old House)
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Re: Save me from financial ruin!!!

Postby JRC on Thu Aug 23, 2012 8:15 pm

Thanks for the replies, everyone. I'll post more photos if I'm able to get there Saturday.
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Re: Save me from financial ruin!!!

Postby GothicHome on Thu Aug 23, 2012 11:11 pm

Most of us wish we could save them all, and we all would probably try if we had the funds. But the reality is we don't and those with the funds are smarter than to lead with the hart.
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Re: Save me from financial ruin!!!

Postby nezwick on Fri Aug 24, 2012 8:27 am

My girlfriend and I find ourselves in a similar position right now. There is a beautiful brick 4-bedroom, 2.5 story Victorian (1 of only 2 brick buildings in town) a couple blocks away which has been vacant (foreclosure) for 2-3 years. GF is friends with the step-daughter of the lady who was foreclosed upon, and has described the house to us in great detail. It (allegedly) retains the original woodwork, hardwood floors, and fireplaces/mantles inside. The outside has some great woodwork on the third level, ALL original windows, and an old (but not original) front porch with double front doors.

It last sold in 2000 for $37,000. I imagine it is worth a LOT less now, possibly low-twenties. However, it has lots of issues - a lot of the brick needs re-pointing, possibly needs a new roof, and some of the woodwork on the west side exterior is in need of repair before it could be painted. Probably needs electrical, plumbing, and HVAC work. It also has a broken attic window, which I'm sure has been allowing water/insect infiltration. The property needs cleared (overgrown with trees and bushes), there is no sidewalk, and no proper parking area. The last owner used to just park in the yard.

I have always dreamed of having a rental property, and with some cleanup, this place could bring in some great tenants. Our problem is, the bank (Wells Fargo) still has not listed it for sale, and we don't have MUCH cash money to use to negotiate a deal. We want to save the house so bad, but by my rough estimates (without even seeing the inside), it could require $50-60k in repairs. If only we had a little more buying power (or more equity in our current home). I'd hate to see the place rot into disrepair and be torn down - or be bought by a slumlord or new owner who rips all the character out.


Here's the Google maps pic from 2009. It was a little overgrown but you can barely see the house now.
Image
The McCullough/Simkins house, built 1872-1877:
Progress thread on Old House Web
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Re: Save me from financial ruin!!!

Postby eclecticcottage on Fri Aug 24, 2012 8:49 am

Is it in foreclosure, or is it foreclosed? There's a difference. If it's still in process AND the bank is willing, you might be able to get it on a short sale (meaning, you pay less than the mortgage and the money goes to the bank). the advantage to the bank, is that they don't have to actually go through all the foreclosure processes. Of course, if they think the property is worth more than what's owed and they will make more by foreclosing...they probably won't go for it. It's a bit like pulling chickens teeth to work with a bank at the pre-REO stage, but sometimes you can. We never got very far in our quest, but we do know they need to post legal notice of the actual foreclosure auction/sheriff's sale. It might vary by state but it seems that here, the bank must auction the property in order to foreclose. HOWEVER *they* can bid on it if they feel they will get more by then listing it in the MLS with an agent.
The Cottage Blog: http://eclecticcottage.blogspot.com/

Current home: 1950's Summer Cottage turned year round home (the Cottage)
-@ 700 sq ft, heated with a wood stove, on the shore of Lake Ontario
Previous home: 1920's Vernacular (the Old House)
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Re: Save me from financial ruin!!!

Postby nezwick on Fri Aug 24, 2012 8:57 am

I guess I should not have used the term "foreclosure" because I honestly do not know the answer to that. Let's just call it "bank owned". The couple who lived there split up when they lost the house, but the house and porches are still piled full of the man's stuff. As soon as I get some free time, I'm going to start doing some serious research on the place.
The McCullough/Simkins house, built 1872-1877:
Progress thread on Old House Web
nezwick
 
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Location: Corsica, PA

Re: Save me from financial ruin!!!

Postby triguy128 on Fri Aug 24, 2012 9:45 am

nezwick wrote:I guess I should not have used the term "foreclosure" because I honestly do not know the answer to that. Let's just call it "bank owned". The couple who lived there split up when they lost the house, but the house and porches are still piled full of the man's stuff. As soon as I get some free time, I'm going to start doing some serious research on the place.


First place might be the county recorder or assessors office to see who the offical owner is and if any back taxes are owed on it. You mgith be able ot see if any leins are filed agaisnt it as well. Where I live, there is a website with this nformation including aerial maps and such. Wonderful tool. Property ownership and the dollar amount of the transaction apparently in Iowa at least, is a matter of public record.

You could probably also pay a title company or real estate lawyer to do this for you as well and give you a legal opinon on what it would require ot gain a clear title. If you serioes it a few hundred dollars well spent. Consider it like an entry fee to a sporting event. If you were a huge football fan, you'd shell out $1000 for season tickets to you favorite team.
1925 Neo-Classical

Previous home - 1968 single story Ranch/Colonial, 1200sqft - 11 windows
Current home - 1925 2 story Beaux Arts Neo-classical overlooking the Mississippi River, 3200sqft - 48 Windows
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Re: Save me from financial ruin!!!

Postby Tom and Jada on Fri Aug 24, 2012 10:48 pm

That's only appraised at $12K?? Here, that house would be $250K as it sits!
Tom and Jada
Current project: Circa 1915 Georgian Colonial Revival
http://www.colonialrevivalrestoration.com
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Re: Save me from financial ruin!!!

Postby triguy128 on Sat Aug 25, 2012 9:17 am

Tom and Jada wrote:That's only appraised at $12K?? Here, that house would be $250K as it sits!



I can show you $30k homes in my town that if restored and plopped into a fancy neighbourhood would be $3-4MM mansions.

IF my house was located on Lake MIchigan north of Chicago, not the the Mississippi river, it would be worth probably around $2MM.
1925 Neo-Classical

Previous home - 1968 single story Ranch/Colonial, 1200sqft - 11 windows
Current home - 1925 2 story Beaux Arts Neo-classical overlooking the Mississippi River, 3200sqft - 48 Windows
triguy128
 
Posts: 708
Joined: Mon Sep 12, 2011 9:41 pm
Location: Keokuk, Iowa

Re: Save me from financial ruin!!!

Postby CountryGirl on Sat Aug 25, 2012 7:38 pm

That is certainly a lovely old house with an awesome porch! :)
I hope it is bought by someone and restored. Did you peek inside yet?

Susan
Image
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