October 11, 2008
More charges in alleged SD foreclosure rescue scam - San Jose Mercury News
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More charges in alleged SD foreclosure rescue scam
San Jose Mercury News, USA - AP SAN DIEGO—Five people accused of victimizing hundreds of San Diego County homeowners in a home foreclosure rescue scam have been arraigned on 71 new … |
I have found a very nice property (house), however it is a foreclosure. I am aware of some of the problems that may exist with foreclosures, but my realtor is very hesitant and insists to stay away all together. I have viewed the house inside and out. Some of the issues he has brought up include: 1. That banks are not very negotiable on asking prices (which is fine, it is only $130,000 while others in the areas are selling for $160,000 to $180,000). 2. Due to the VA process being more stringent than a conventional loan there may be delays in the closing, and the offering bank may deny extensions and consider the lateness a default of the offer agreement and keep my deposit. In which case, he states, I would have to not only redo paperwork but also cough up another deposit. 3. The paper work would require many more contingencies not found in normal real estate transactions (though my realtor has an in-house real estate lawyer in his office, again forfeiting my deposit if I am not able to meet the exact requirements. 4. The VA appraiser may find problem with the house, in which case I would be required (as the bank would not want to deal with the problem) to pay to fix it up before my loan was approved. The problem my realtor states is that the bank can continue to take offers and decide to take one from someone else though I have already invested money into fixing the house up and no one would be obligated to pay for the work I provided. Some background information, the realtor I am working with is from Zip Realty. The house may have a non-working AC compressor but does have working ceiling fans. The house is located in South Florida so heating wouldn't necessarily be a problem or at least nothing a space heater couldn't fix and people can live without AC, especially as I am not elderly or have a young child (I am 24). There is a small area of mold in the bathroom (no larger than 5 square inches). There is some funky bubbles on the wall paint in the other bathroom with snow looking material coming out of the patches (without having much knowledge on this, I suspect the previous owners may have used the wrong type of paint and now moisture has gotten between the paint and the sheetrock causing bubbling walls). Inside the house there were no noticeable areas of concern, such as holes in the wall, bad flooring, terrible smells (besides the cabinets where it smells like mice may have been at one time, I did not see any mice though). Lastly, there were small cracks around the exterior of the house. The house was built in the 1970s. The concrete construction may not necessarily be failing, as I picked the paint away from the exterior walls and could no longer see the crack. I am also considering another property, that is a regular sale, half the size at only 890 square feet, no garage (only a car port), the backyard is rather small with a large concrete wall stretching the length of it, but my realtor believes he can get it for $105,000. My questions is, would I be better of seeking the regular sale property since I am using the VA loan or should I go through the hassle of trying to get the foreclosure. Also what, of the above, problems do VA loan appraisals require before I can close on the house. Would I be giving myself a headache and losing money with trying to purchase a foreclosure. Thanks! more…
