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Private real estate transaction advice needed - no realtors

BearSchlong

By BearSchlong
in Can You Help Me With This?

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BearSchlong

BearSchlong 8114

Posted
Posted (edited)

My mother in law and I have an agreed upon purchase price for a house that I will be buying from her - it matches the appraisal district valuation but is probably less than what she could get if she listed it for sale on the market.

My prior real estate transactions involved realtors and mortgage companies that handled everything - I just showed up at the title company at closing to sign documents.  I will be getting a mortgage, and have 20% of the purchase price set aside for the down payment on a 15yr fixed conventional.

I'm sure the mortgage co. will require an appraisal, etc.

Do I just call the title company and tell them that I want to engage them to handle the documentation and closing? Apply for a mortgage and let the lender handle it?

Trying to do this without getting fleeced by everyone who has their hand out.

What should I expect to pay for this transaction?

What other pitfalls should I anticipate?

TIA

 

 

Edited by BearSchlong
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UTPhil2006

UTPhil2006 3812

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Yeah we can do the mortgage for you, and then wherever you're located we can send a notary from the title company we use for everything to close you guys wherever you like.  They are usually the lowest on fees which is why we use them, but all their fees are third party.  And of course on the mortgage we'd take care of you as we have multitudes of other Shagsters.  You can email me any questions at pdubord@prodigymbo.com 

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deadshank

deadshank 24653

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22 minutes ago, UTPhil2006 said:

Yeah we can do the mortgage for you, and then wherever you're located we can send a notary from the title company we use for everything to close you guys wherever you like.  They are usually the lowest on fees which is why we use them, but all their fees are third party.  And of course on the mortgage we'd take care of you as we have multitudes of other Shagsters.  You can email me any questions at pdubord@prodigymbo.com 

 

10 minutes ago, BearSchlong said:

Email sent, @UTPhil2006.

 

 

When do I get paid?

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Bernard

Bernard 879

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The mortgage company and title company will probably ask you for a purchase and sale agreement. You can download the TREC 1-4 Family Resale contract from the TREC website. Add the addendum regarding lead based paint if the house is 1978 or older. You can find the seller disclosure form there too. Have your MIL fill that out. You can walk right in the door of any title company with those signed papers in hand and say, “I’m buying a house from my mother-in-law. Here’s the sales contract. What do we do next?” Title company and lender can lead you through the rest.

Bernard

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UTPhil2006

UTPhil2006 3812

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8 hours ago, Bernard said:

The mortgage company and title company will probably ask you for a purchase and sale agreement. You can download the TREC 1-4 Family Resale contract from the TREC website. Add the addendum regarding lead based paint if the house is 1978 or older. You can find the seller disclosure form there too. Have your MIL fill that out. You can walk right in the door of any title company with those signed papers in hand and say, “I’m buying a house from my mother-in-law. Here’s the sales contract. What do we do next?” Title company and lender can lead you through the rest.

Bernard

Mortgage company isn’t gonna steer him wrong (at least we won’t) since he needs one 

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Gil Bang

Gil Bang 26021

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As a realtor, once the contract is signed, my job is to make sure that shit's getting done in a timely manner.   I don't know about the Texas contract, (and I'm not going to bother downloading it) but the CA contract has time limits for when shit's gotta get done.  Appraisal, inspection, termite, etc.  

When I get a deal together, I print out a calendar with all relevant dates and share it with all the parties. 

It's often useful, because people forget to do shit.   "Did you remember to order the Home Warranty?"  

Oh shit, I forgot.  Thanks for the reminder. 

Happens on every deal. 

Edited by Gil Bang
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Gil Bang

Gil Bang 26021

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Posted
11 hours ago, Bernard said:

The mortgage company and title company will probably ask you for a purchase and sale agreement. You can download the TREC 1-4 Family Resale contract from the TREC website. Add the addendum regarding lead based paint if the house is 1978 or older. You can find the seller disclosure form there too. Have your MIL fill that out. You can walk right in the door of any title company with those signed papers in hand and say, “I’m buying a house from my mother-in-law. Here’s the sales contract. What do we do next?” Title company and lender can lead you through the rest.

Bernard

To clarify:  seller disclosures go to title out there? 

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Bernard

Bernard 879

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On 10/3/2020 at 11:01 AM, Gil Bang said:

To clarify:  seller disclosures go to title out there? 

Title company doesn’t care about the seller disclosure, but it is required by the State of Texas for all residential sales, with a few exceptions (estates, foreclosures, etc.). 

Bernard

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BearSchlong

BearSchlong 8114

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On 10/2/2020 at 11:31 PM, Bernard said:

The mortgage company and title company will probably ask you for a purchase and sale agreement. You can download the TREC 1-4 Family Resale contract from the TREC website. Add the addendum regarding lead based paint if the house is 1978 or older. You can find the seller disclosure form there too. Have your MIL fill that out. You can walk right in the door of any title company with those signed papers in hand and say, “I’m buying a house from my mother-in-law. Here’s the sales contract. What do we do next?” Title company and lender can lead you through the rest.

Bernard

This is exactly what we did, closed the week before Christmas.  Wasn't without a little drama, though, and exposed a few loose threads that should have been caught the last time the property changed hands.  For example, when my FIL inherited the property after his mother's death, his sister didn't execute a document correctly and the title company had to get his lawyer to cure the deed for the Title Insurance.  Also FIL had added an additional standalone structure to the property which required an updated survey which we didn't anticipate.

The biggest issue was with USAA - Windstorm insurance is required in my area and they sell policies through a company named Weston.  When it came time for me to buy the policy and get documentation to the mortgage company Weston's computers were down.  For a week. Under duress, I had USAA write me a policy through TWIA which was about $800/yr higher.  Plus the homeowner's quote from USAA was $100 higher when I bought the policy from when it was quoted a month prior.  I'll be checking out or starting a Homeowner's/Windstorm insurance thread because I intend to shop these.

All in all I gained valuable experience, and now have great relationships with specialists at my credit union and the title company. Did a 15 yr mortgage but intend on paying it off within 2 years and leveraging into a new house or perhaps starting my 2nd career as a landlord.

@Gil BangI did gain new respect for Realtors though - they sure do make it easier - both me and the seller (FIL) had to do a bunch of stuff (Phone calls, document prep) that would normally be handled by Realtors - it just made more sense to handle this specific transaction ourselves.

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Dbeasy

Dbeasy 15092

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1 minute ago, BearSchlong said:

This is exactly what we did, closed the week before Christmas.  Wasn't without a little drama, though, and exposed a few loose threads that should have been caught the last time the property changed hands.  For example, when my FIL inherited the property after his mother's death, his sister didn't execute a document correctly and the title company had to get his lawyer to cure the deed for the Title Insurance.  Also FIL had added an additional standalone structure to the property which required an updated survey which we didn't anticipate.

The biggest issue was with USAA - Windstorm insurance is required in my area and they sell policies through a company named Weston.  When it came time for me to buy the policy and get documentation to the mortgage company Weston's computers were down.  For a week. Under duress, I had USAA write me a policy through TWIA which was about $800/yr higher.  Plus the homeowner's quote from USAA was $100 higher when I bought the policy from when it was quoted a month prior.  I'll be checking out or starting a Homeowner's/Windstorm insurance thread because I intend to shop these.

All in all I gained valuable experience, and now have great relationships with specialists at my credit union and the title company. Did a 15 yr mortgage but intend on paying it off within 2 years and leveraging into a new house or perhaps starting my 2nd career as a landlord.

@Gil BangI did gain new respect for Realtors though - they sure do make it easier - both me and the seller (FIL) had to do a bunch of stuff (Phone calls, document prep) that would normally be handled by Realtors - it just made more sense to handle this specific transaction ourselves.

I eventually had to bail on USAA for homeowners insurance because their rates were so high as compared to alternatives. I suspect that in the event of an actual major claim there would be less film flam risk with USAA, but I just couldn’t justify a 2x price difference vs alternatives. 

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Gil Bang

Gil Bang 26021

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8 hours ago, BearSchlong said:

Makes me want to get licensed, I actually did get my BBA in Finance and Real Estate, but got into the telecom business instead.

No idea about Texas, but it costs a lot to be licensed out here.  A couple G's a year for Board dues, MLS, E&O, etc.   Add in marketing materials, etc, it adds up real quick.. 

 

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Johnny Chimpo

Johnny Chimpo 479

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On 10/3/2020 at 8:30 PM, Gil Bang said:

As a realtor, once the contract is signed, my job is to make sure that shit's getting done in a timely manner.   I don't know about the Texas contract, (and I'm not going to bother downloading it) but the CA contract has time limits for when shit's gotta get done.  Appraisal, inspection, termite, etc.  

When I get a deal together, I print out a calendar with all relevant dates and share it with all the parties. 

It's often useful, because people forget to do shit.   "Did you remember to order the Home Warranty?"  

Oh shit, I forgot.  Thanks for the reminder. 

Happens on every deal. 

Do you know of a good resource for these issues as far as California goes? I’m selling a house in California to a friend of mine who’s been renting from me for a few years and we’re trying to go down this path as well. 
 

I found this resource for the sales contract and disclosures but I don’t see anything about timing and dates? 
 

https://eforms.com/purchase-agreements/ca/

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Gil Bang

Gil Bang 26021

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9 hours ago, Johnny Chimpo said:

Do you know of a good resource for these issues as far as California goes? I’m selling a house in California to a friend of mine who’s been renting from me for a few years and we’re trying to go down this path as well. 
 

I found this resource for the sales contract and disclosures but I don’t see anything about timing and dates? 
 

https://eforms.com/purchase-agreements/ca/

I'm happy to advise you as a surly courtesy.  Shoot me a PM.  I will respond no later than tomorrow.  I've got some distractions today. 

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