All Encompassing Mortgage and Real Estate Thread

[UTPhil2006 3,876]

1 hour ago, 2300 Nueces said:

I'm a builder in DFW.  Contemplating dumping inventory to front run the flood of pre owned homes about to hit the market.  Have loan conditions frozen for new home buyers?

As long as they have a strong stat line (good LTV, credit, DTI) they're fine.  Now FHA (and all gov loans) are gonna tighten up pretty soon.  By April 15th soon.

[2300 Nueces 163]

5 minutes ago, UTPhil2006 said:

As long as they have a strong stat line (good LTV, credit, DTI) they're fine.  Now FHA (and all gov loans) are gonna tighten up pretty soon.  By April 15th soon.

Thanks.  Next will be appraisals.  Been in this rodeo before.

[smokebomb 360]

Interesting read on the potential mortgage crisis:

https://www.curbed.com/2020/3/27/21197434/mortgage-coronavirus-forbearance-crisis-coronavirus-servicers

Quote

Coronavirus is brewing a mortgage crisis

A mortgage forbearance directive could decimate mortgage lending infrastructure if Congress and regulators don’t act fast

By Jeff Andrews  Updated Mar 30, 2020, 10:32am EDT

The financial crisis of 2008 was caused by homeowners defaulting on their mortgages en mass thanks to risky loan products that were destined to fail. The bonds those mortgages were bundled into collapsed in value as a result, and it brought the entire financial system down with it.

With the stock market tanking and unemployment skyrocketing, is the economic fallout of COVID-19 about to cause history to repeat?

Earlier in March, the Federal Housing Finance Agency (FHFA), which regulates mortgage facilitators Fannie Mae and Freddie Mac, directed mortgage servicers of Fannie and Freddie mortgages to offer mortgage forbearance or reduced payments to homeowners impacted by the novel coronavirus.

While a separate directive from the FHFA put a moratorium on foreclosures and evictions of homeowners whose mortgages are owned by Fannie or Freddie, the potential fallout in financial system has not yet been patched. Mortgage bonds are still disbursed to hedge funds, pension funds, and elsewhere.

What happens this time when mortgage payments stop flowing into mortgage bonds?

“I think what’s scary about it is what the last recession crisis taught us is just how intertwined so much of financial markets are,” says Patrick Boyaggi, CEO of mortgage marketplace Own Up. “You don’t just see something like this happen and there not be a ripple effect throughout the economy.”

Homeowners are protected by the FHFA directives. Mortgage servicers—the companies that collect payments from borrowers and disbursed the payment to investors in mortgage bonds—are still on the hook to pay investors, even if borrowers stop making payments. The company that handles payments can vary: it is either the bank or lender that issued the mortgage, or a separate company that specializes in servicing mortgages. Among those banks are the biggest in the country—Citi, JPMorgan Chase, Wells Fargo.

If Congress and regulators don’t intervene—and fast—some mortgage servicers, banks, and lenders will have to dip into capital reserves that are insufficient to cover these payments over the long term. Some will have to shutdown entirely, at least temporarily.

If mortgage servicers fail, there is no one to collect mortgage payments and disburse the money to investors of mortgage bonds. The entire mortgage infrastructure would collapse and investors would be holding potentially worthless mortgage bonds. Banks servicing loans and/or holding mortgage bonds would be short on the cash that they typically lend to homeowners.

The contagion that would cause in the financial system is impossible to know—but it could potentially be devastating. Mortgage lending could come to a halt. Pension funds could take yet another hit. It could make the economic recovery after the pandemic take even longer.

The good news is federal regulators and lawmakers are aware of the problem and working to fix it. Ginnie Mae, which deals mostly with affordable mortgages, has announced its intent to address the problem in the next two weeks. The Federal Reserve has already purchased $214 billion worth of mortgage bonds in hopes of stabilizing the market. Language to address this problem was included in theHouse draft of the relief bill that passed on Friday, but it didn’t make it into the final bill.

The other good news is this is a fairly straight forward cash-flow problem. Mortgage servicers need cash in order to make payments to mortgage-bond investors, but they are not getting that money because of the mortgage forbearance directive from FHFA. The solution proposed in the House draft of the relief bill was for the Federal Reserve to extend a line of credit to mortgage servicers to cover their near-term cash flow problem.

“[Regulators and lawmakers] are aware of the issue and I think there’s generally consensus about the path of least resistance on some of this, but it has to happen,” says Andrew Jakabovics, vice president of policy development at Enterprise Community Partners. “That’s where we are at the moment, waiting for that to become official, this clarity and certainty.”

The bad news is that the economic fallout of COVID-19 has caused similar and equally catastrophic problems for practically every industry in America, and they’re all lobbying hard to get their fix written into what will no doubt be more relief packages passed by Congress. Whether the mortgage industry breaks through the chaos and gets its fix before another industry does is anybody’s guess.

The other bad news is that the longer it takes for lawmakers and regulators to act, the worse the problem will get and the harder it will be to fix it. While the Federal Reserve setting up a line of credit to mortgage servicers sounds fairly simple, it still takes time, which is already strained because of everything else happening. A month could be too late for many servicers.

“There’s been a hair-on-fire level of outreach to every part of the administration and Congress from not just the industry but consumer groups that realize the implications of all this,” says Jim Parrott, a nonresident fellow at the Urban Institute and owner of Falling Creek Advisors, a housing finance consultancy. “The $64,000 question is given all the other industries that are probably saying something similar, how do we prioritize which sectors of the economy that are all in need of these credit facilities?”

 

[Rusty Shackelford 414]

Stupid question regarding this situation:

https://www.msn.com/en-us/finance/markets/mortgage-bankers-ask-sec-to-save-them-from-margin-call-surge/ar-BB11SCJb

Quote

Unintended Consequences

The Fed initiated its bond purchases earlier this month as the spread of the coronavirus hammered financial markets, causing liquidity to dry up and prices to plummet as the typical buyers of mortgage-backed securities fled. The pain mortgage lenders are now facing from their hedges shows that government intervention can trigger unintended consequences.

The MBA letter, signed by Chief Executive Officer Robert Broeksmit, said that when lenders issue new loans, they often simultaneously short mortgage-backed securities. This is done because the loans might fall in value before a banker can sell them to Fannie Mae and Freddie Mac. The bet against mortgage bonds helps protect the lender if that happens, Broeksmit wrote.

Now, with lenders getting crushed on these hedges, they’re facing a wave of demands from brokers that they sell holdings or put more money in their trading accounts.

If brokers got what they want and know that the Fed is going to buy MBS out the ass, why are they still hedging/shorting MBS?

[2300 Nueces 163]

13 minutes ago, Rusty Shackelford said:

Stupid question regarding this situation:

https://www.msn.com/en-us/finance/markets/mortgage-bankers-ask-sec-to-save-them-from-margin-call-surge/ar-BB11SCJb

If brokers got what they want and know that the Fed is going to buy MBS out the ass, why are they still hedging/shorting MBS?

Gotta shear the last bit of wool on those shorts, duh.  Right after they sheared them on the long side.  It's Spring after all.

Edited April 1, 2020 by 2300 Nueces

[Rusty Shackelford 414]

I don't understand why they think they need to hold on to their short position.

Close the position, avoid margin call, let the Fed keep buying,  Why wouldn't that work (in this new environment)?

[Wulaw Horn 19,515]

29 minutes ago, Rusty Shackelford said:

I don't understand why they think they need to hold on to their short position.

Close the position, avoid margin call, let the Fed keep buying,  Why wouldn't that work (in this new environment)?

They have to short the MBS because they aren’t gamblers. When you lock a rate they have to make a short bet in order to be able to deliver you your rate 30/45/60 days down the road without being in the gambling business. If the market goes up they make more money on your lock but lose money on their short. If the reverse happens they lose money on your rate but make money on the short in a corresponding fashion. They are balancing the game so there’s equal exposure both ways (allegedly). 

With this much volatility in the game though they stand to lose their ass 

[Rusty Shackelford 414]

11 minutes ago, Wulaw Horn said:

They have to short the MBS because they aren’t gamblers. When you lock a rate they have to make a short bet in order to be able to deliver you your rate 30/45/60 days down the road without being in the gambling business. If the market goes up they make more money on your lock but lose money on their short. If the reverse happens they lose money on your rate but make money on the short in a corresponding fashion. They are balancing the game so there’s equal exposure both ways (allegedly). 

With this much volatility in the game though they stand to lose their ass 

Sounds like it's out of balance at the moment.  Sure, not a good idea to close all short pos, but at least trim enough to avoid margin call?

Of course the "Powell Put" failed in the stock market (I had even started believing it in late 2019), so yeah, bad idea.

[Wulaw Horn 19,515]

17 minutes ago, Rusty Shackelford said:

Sounds like it's out of balance at the moment.  Sure, not a good idea to close all short pos, but at least trim enough to avoid margin call?

Of course the "Powell Put" failed in the stock market (I had even started believing it in late 2019), so yeah, bad idea.

That’s over my pay grade man. 

[Gil Bang 26,164]

So our brokerage (a really big one in SoCal) is now requiring that all parties involved in a showing/inspection/appraisal/whatever sign a release form for COVID.  

This is in addition to the COVID addendum to our purchase contracts

[UTPhil2006 3,876]

18 hours ago, Gil Bang said:

So our brokerage (a really big one in SoCal) is now requiring that all parties involved in a showing/inspection/appraisal/whatever sign a release form for COVID.  

This is in addition to the COVID addendum to our purchase contracts

Makes sense I guess. 

[MonkeyDoughnut 10,689]

18 hours ago, Gil Bang said:

So our brokerage (a really big one in SoCal) is now requiring that all parties involved in a showing/inspection/appraisal/whatever sign a release form for COVID.  

This is in addition to the COVID addendum to our purchase contracts

What does the COVID addendum actually entail/warrant on the purchase contract?

[UTPhil2006 3,876]

COVID-19 Addendum: (The original form created by TR, #2520)
This form provides for a 30-day extension of the closing date in a residential sales contract if the closing cannot occur due to a voluntary or mandatory COVID-19 quarantine or closure.
 
Commercial COVID-19 Addendum: (Made available 3/31, #1952)
This form provides for a 30-day extension of the closing date in a commercial sales contract if the closing cannot occur due to a voluntary or mandatory COVID-19 quarantine or closure.
 
COVID-19 Lease Payment Plan Agreement: (Made available 3/31, #2227)
This form is intended to be used with tenants who are facing financial difficulties directly linked to COVID-19. This form enables the tenant and landlord temporary flexibility for paying rent and other sums.
 
Model COVID-19 Certification for Property Access: (Made available 3/31, no number)
This model form was created so that a brokerage can adopt for use when a potential buyer or other service provider will access the property for a viewing or other transaction-related service.

[UTPhil2006 3,876]

On 3/30/2020 at 3:37 PM, UTPhil2006 said:

10 year down .07 to .67.  DJI up 690.

Also, we may start to see things tightening up as far as the low end of things from traditional lenders.  If you're 680 and up, and a solid DTI, you're still for the most part set.  If you're getting the fringe limits of DTI, they're gonna want more reserves (ability to repay), etc.  Self employed will face a bit tighter restrictions.  Nothing over the top quite yet, but just leaning towards stronger loans.  If you've got a good stat line (good credit, good DTI, reserves/down payment) nothing to worry about as of now.  And this is only one lender so far, but I'm willing to bet their stance starts to trickle  down.

10 year finished the week at 0.58.  Lenders still haven't really passed that on yet, so we're still somewhat in a holding pattern.  Still good rates to be had but got to search for them and hope you time it right with the right lender on the right program at the right time of day/week

[Pato del Muerto 53,175]

So my servicer is Flagstar bank. It’s an fha loan so the cares act applies. 
from their info page, it looks like I’m eligible for 180 days forbearance but I have to get current at the end of that period or negotiate some new plan or loan modification. 
 

I kind of want to hold on to our money and use the forbearance period, even though we have not been impacted financially YET, but that puts some faith in triggering something that has an unknown ending in 6 months. 
plus, is it technically fraudulent to say you have a financial hardship before you actually do?

so, what online tools are available to see how my loan changes if I don’t pay P&I for 6 months and that gets added to principal?  It’s pretty early in my note so most of it is still interest. How did this work in 2008?

[UTPhil2006 3,876]

I'd stay current on it if feasible, but that's just me personally.  Everyones situation is different in this current climate

[Pato del Muerto 53,175]

We can do that. Until we can’t. Just not sure about waiting for the hammer to drop before making changes. 

[Sgt Hulk 14,300]

So we've been virtually looking at properties all winter for my upcoming move sadly back to mid atlantic region.  i swear every time i've purchased or sold a home its been during doom and gloom, im sorry gents.  I sold a home in 08, bought one in 09, now trying to buy another during what could be a interesting mortgage market this summer, wondering what closing is going to be like in July if i'm able to move

[HookEm 2,484]

Here's a bit of an unusual tax question regarding real estate.  My wife is the agent on a new home build.  The builder offered and paid her a slightly reduced commission last December as opposed to a full commission when the house completes in May of this year.

We went ahead and filed our taxes and counted it as a sale last year.  Now I'm wondering if it would be possible to revise my taxes and instead count it against THIS year since the closing hasn't actually occurred yet.  Basically treating it as a deferred revenue. 

Any ideas?

[Surly Bevo 25,611]

4 hours ago, Pato del Muerto said:

We can do that. Until we can’t. Just not sure about waiting for the hammer to drop before making changes. 

Forbearance is just kicking the can until things are clearer and a solution to a person's particular default situation can be found.  Basically the ER to stabilize the consumer until there is time to figure out how serious shit really is for them and then we can do surgery. 

There is no reason to kick the can until you need to kick the can.  Kick it to early and this winds on longer or gets worse than you expect.....UNLESS you are real fucking disciplined with whatever you are unnecessarily "saving" you are playing with fire you probably don't want or need to play with (nobody is going to take this option off the table any time in the near term so it will be there).  Oh and then yea there is the whole fraudulent thing.

Also I didn't stay at a Holiday Inn last night but I do work for an organization at the heart of the industry. For what that is worth.

Edited April 4, 2020 by Surly Bevo

[Pato del Muerto 53,175]

Yeah it feels like playing with fire to me. It’s just tempting to use it as a pseudo cash out whereby I could pay off a vehicle early with no costs. But I can’t pull the trigger with no sure understanding of what happens to the 12k i don’t pay over the next 6 months (less if I still have to fund  escrow and monthly MIP, which i probably would and would make all of this moot anyhow)

[Texaus 389]

I believe that is bullshit. My reading of the cares act makes it clear that federally backed mortgages require forbearance if requested and lender must restructure without penalty at end of period. You do not have to come up with those payments at end of period.

[Sgt Hulk 14,300]

1 hour ago, Texaus said:

I believe that is bullshit. My reading of the cares act makes it clear that federally backed mortgages require forbearance if requested and lender must restructure without penalty at end of period. You do not have to come up with those payments at end of period.

is this confirmed?

[Sgt Hulk 14,300]

On 4/3/2020 at 4:20 PM, Pato del Muerto said:

So my servicer is Flagstar bank. It’s an fha loan so the cares act applies. 
from their info page, it looks like I’m eligible for 180 days forbearance but I have to get current at the end of that period or negotiate some new plan or loan modification. 
 

I kind of want to hold on to our money and use the forbearance period, even though we have not been impacted financially YET, but that puts some faith in triggering something that has an unknown ending in 6 months. 
plus, is it technically fraudulent to say you have a financial hardship before you actually do?

so, what online tools are available to see how my loan changes if I don’t pay P&I for 6 months and that gets added to principal?  It’s pretty early in my note so most of it is still interest. How did this work in 2008?

I had thought about doing something similar myself, i mean my wife has lost her job  it sucks but not the end of the earth as we are fairly frugal with only car and house notes, but a few months of mortgage payments in an emergency fund would be nice and not stress us with the L we are taking on wife out of work 

[Texaus 389]

is this confirmed?

https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=406472

The idea that loan servicers are going to require immediate repayment of everything is absurd, IMO. That would defeat the entire purpose of the relief. Cares act doesn’t specify what the terms will be after forbearance, just that borrower will suffer no penalty, fee, or negative credit report.

I have two mortgages backed by Freddie Mac. One is my primary and the other is investment with 4 rental units. I requested forbearance on both. I am putting aside the mortgage payments and will see what modifications my servicer will make at the end of all this, I suspect they will ask for whatever I can pay, if any, of what I missed and then just extend mortgage term. Important note here: I am leaving escrow accounts(pmi, taxes, insurance) out of this discussion because I don’t have escrow and pay those on my own, if your loan includes an escrow, I wouldn’t be surprised to see your servicer require that amount at end of forbearance period, or set up a separate repayment option for that portion.

[Dnaguy 12,504]

As part of the cares act, do you have to prove you’ve had a hardship?

Can’t we all just say we have one? 

And if you’ve refinanced, can you ask for forbearance before the 1st payment is even due?

I mean, I know it’s kind of shitty but the wife got furloughed and any way to save some cash .....

[Rusty Shackelford 414]

https://www.cnbc.com/2020/04/06/coronavirus-bailout-there-is-going-to-be-complete-chaos-mortgage-ceo.html

WTH is going on here?  Seems like this Calabri guy is trying to blow the system up.

Also:

Quote

“Throwing this out there without showing evidence of hardship was an outrageous move, outrageous,” said David Stevens, who headed the Federal Housing Administration during the subprime mortgage crisis and is a former CEO of the Mortgage Bankers Association. “The administration made a huge mistake bringing moral hazard in and thrust extraordinary risk into the private sector that could collapse the mortgage market.”

Fannie and Freddie admit to being levered 240:1 (probably much higher) and this asshole wants to complain about Joe Sixpack's moral hazard?

[Captainant 28,275]

2 minutes ago, Rusty Shackelford said:

https://www.cnbc.com/2020/04/06/coronavirus-bailout-there-is-going-to-be-complete-chaos-mortgage-ceo.html

WTH is going on here?  Seems like this Calabri guy is trying to blow the system up.

Also:

Fannie and Freddie admit to being levered 240:1 (probably much higher) and this asshole wants to complain about Joe Sixpack's moral hazard?

Some of the stuff in that article speaks to a real disconnect from reality for joe-normal. The bankers and mortgage bond servicers are shocked that so many folks that can't pay their mortgage without their paycheck, which is surprising considering most American's can't absorb a $500 unexpected expense. Markets and marketmakers have been playing coke-and-hookers rules or something

[LCHorn 2,732]

Yeah, we've all been talking about Calabria.  When you elect a Republican you at least expect them to not fuck up commerce.  Apparently this administration can't even do that effectively. 

FYI DNAguy, if you liked your LO/lender, at least make that first payment and then ask for a forbearance (unless it's just going to hammer you financially).  When that first payment doesn't get made a lender gets eaten alive.*

*if your lender was Quicken, WF, Chase, or BofA then carry on...

[LCHorn 2,732]

4 minutes ago, Captainant said:

Some of the stuff in that article speaks to a real disconnect from reality for joe-normal. The bankers and mortgage bond servicers are shocked that so many folks that can't pay their mortgage without their paycheck, which is surprising considering most American's can't absorb a $500 unexpected expense. Markets and marketmakers have been playing coke-and-hookers rules or something

Nobody is shocked, but there was  a presumption that the Fed/GSE's/etc., would keep the market alive for servicers. 

I know everyone is just conscious of "low rates", but right now servicing rights are worthless, a bunch of lenders are going to go out of business without help, and this is going to be make borrowing more expensive for everyone.  

 

[UTPhil2006 3,876]

3 hours ago, LCHorn said:

Yeah, we've all been talking about Calabria.  When you elect a Republican you at least expect them to not fuck up commerce.  Apparently this administration can't even do that effectively. 

FYI DNAguy, if you liked your LO/lender, at least make that first payment and then ask for a forbearance (unless it's just going to hammer you financially).  When that first payment doesn't get made a lender gets eaten alive.*

*if your lender was Quicken, WF, Chase, or BofA then carry on...

This.

[drt 642]

Any real estate lawyers in Austin on here?  Neighbor pumped out his pool into our yard and then took down the chainlink that denoted the property line.

[UTPhil2006 3,876]

13 minutes ago, drt said:

Any real estate lawyers in Austin on here?  Neighbor pumped out his pool into our yard and then took down the chainlink that denoted the property line.

Only solution is to burn his house down in retaliation.  Fight water with fire.

[Rusty Shackelford 414]

Any real estate lawyers in Austin on here?  Neighbor pumped out his pool into our yard and then took down the chainlink that denoted the property line.

You didn’t shoot him? Username does not check out.

[drt 642]

Here I was thinking this was the actual situation for a sternly worded note, but the day isn't over yet Rusty.

[Rusty Shackelford 414]

If you want, I can show you how to make a bomb out of a roll of toilet paper and a stick of dynamite.

[Surly Bevo 25,611]

On 4/4/2020 at 8:42 PM, Texaus said:

I believe that is bullshit. My reading of the cares act makes it clear that federally backed mortgages require forbearance if requested and lender must restructure without penalty at end of period. You do not have to come up with those payments at end of period.

Wait was this in regard to my post?  Because I clearly articulated it was kicking a can on (hopefully) a short term hardship with no clear resolution at this time until more is known and it can be effectively dealt with with any myriad of options (repayment plans, cap and extend mods, blah blah blah) BUT those are not all  necessarily  going to put you back in the same or better position payment wise and while it is currently true that you do not have to show the goods so to speak in order to get the forbearance you can bet that you will have to do the full workup for those longer term plans.  Nobody is going to give you a trial and or permanent modification without assessing your capacity to pay so if you have capacity now and have taken out a forbearance you don't need you're going to have to continue that cover-up.

 

Edited April 7, 2020 by Surly Bevo

[Pato del Muerto 53,175]

41 minutes ago, Rusty Shackelford said:

If you want, I can show you how to make a bomb out of a roll of toilet paper and a stick of dynamite.

Sure. Where the fuck is he going to get a roll of TP?  

[Wulaw Horn 19,515]

On 4/6/2020 at 9:55 PM, Rusty Shackelford said:

If you want, I can show you how to make a bomb out of a roll of toilet paper and a stick of dynamite.

I don’t believe you (about having a roll of

toilet paper that is). 

[Gil Bang 26,164]

loan bros, what have rates been doing lately.  I don't have any buyers, so I haven't been paying attention.

 

[UTPhil2006 3,876]

35 minutes ago, Gil Bang said:

loan bros, what have rates been doing lately.  I don't have any buyers, so I haven't been paying attention.

 

Pretty stagnant.  Higher than where they should be given where the market stands, credit and LTV guidelines have tightened.  Thinking as things get better they'll start relaxing things.  But right now unless you're >80% LTV, 740+ credit, etc then you're not getting the low rates.  The 30 year for those people are hovering around 3.5%.. 15's just aren't great at all right now.

[Wulaw Horn 19,515]

Locked 4 loans the last 2 days:

VA 30 at 2.875

Conventional 30 at 3.25 

Conventional 30 at 3.375

Conventional 15 at 2.875 

those are all strong credit score refinance people paying no points. No hits for being home equities or odd loan terms (like 20 or 25 instead of 15 or 30). 

Could have done the 2 conventional 30 year loans 1/8 of a point lower if they’d have been purchases

I work cheaper than almost anyone else as a broker shop so your mileage may vary- especially in CA- but that’s what we are doing for our premium credit score buyers. 

Edited April 8, 2020 by Wulaw Horn

[Rusty Shackelford 414]

Calabria: No nonbank is too big to fail

https://www.housingwire.com/articles/calabria-no-nonbank-is-too-big-to-fail/

duly noted.

[Sgt Hulk 14,300]

Real estate pros.  Made an offer on a home in VA that was accepted.  Doing the home inspection next week.   I'm no baller but this is my first "used " home buy as all my buys in the past have been new builds.  Meaning this is my first home inspection.  

In the event something comes back, say HVAC unit is nearing its end of life, or water heater, or the roof has a few years left kind of deal, what would be the next steps?  Ask sellers to remedy?  negotiate reduced price and fix myself.   What in terms of home inspection is a minor inconvenience and not worth the haggle vs is yeah haggle. Aside from foundation, termite major systems.

Inspection is next week  

[Anastasis 23,665]

14 minutes ago, Sgt Hulk said:

negotiate reduced price and fix myself. 

I'd lean towards this. Last thing you want is somebody bringing in a cheap and quick fix. 

[Incredulity 11,841]

1 hour ago, Sgt Hulk said:

Real estate pros.  Made an offer on a home in VA that was accepted.  Doing the home inspection next week.   I'm no baller but this is my first "used " home buy as all my buys in the past have been new builds.  Meaning this is my first home inspection.  

In the event something comes back, say HVAC unit is nearing its end of life, or water heater, or the roof has a few years left kind of deal, what would be the next steps?  Ask sellers to remedy?  negotiate reduced price and fix myself.   What in terms of home inspection is a minor inconvenience and not worth the haggle vs is yeah haggle. Aside from foundation, termite major systems.

Inspection is next week  

X2 on discount do the fix yourself(you hire someone).  Otherwise expect lowest common denominator on fix.

 

Expect there to be items to deal with,  balance that with your opinion on the house and asking price.

[Storm the Field 5,329]

That concept can also apply on the sell side as well. Don't spend major $ on stuff like replacing a roof or putting in a brand new HVAC before listing. Just be willing to knock a fair amount off your price.  Buyer won't credit you spending the money as much as they will spending less of their own money, and they may not even like the options you went with anyways. The ROI just isn't there.

Edited April 10, 2020 by Storm the Field

[Dbeasy 15,464]

And just be aware that every inspection report will find dozens of issues. Focus on the few large important items and make sure there isn’t a show stopper like major foundation issues. Then, be prepared to negotiate to get some money for the important stuff but not for little things. Your leverage comes from items that might make it hard for the seller to put it back on the market.

[UTPhil2006 3,876]

9 minutes ago, Dbeasy said:

And just be aware that every inspection report will find dozens of issues. Focus on the few large important items and make sure there isn’t a show stopper like major foundation issues. Then, be prepared to negotiate to get some money for the important stuff but not for little things. Your leverage comes from items that might make it hard for the seller to put it back on the market.

This. And above is correct about getting a fair amount of money for repairs and doing it yourself 

[hornfan785 567]

On 4/8/2020 at 3:19 PM, Wulaw Horn said:

Locked 4 loans the last 2 days:

VA 30 at 2.875

Conventional 30 at 3.25 

Conventional 30 at 3.375

Conventional 15 at 2.875 

those are all strong credit score refinance people paying no points. No hits for being home equities or odd loan terms (like 20 or 25 instead of 15 or 30). 

Could have done the 2 conventional 30 year loans 1/8 of a point lower if they’d have been purchases

I work cheaper than almost anyone else as a broker shop so your mileage may vary- especially in CA- but that’s what we are doing for our premium credit score buyers. 

What determines the difference in rates for the two Conventional 30's? I just submitted an offer on a house yesterday and the lender my realtor recommended quoted me a rate of 3.375. Seems in line with what you listed, but I'm just curious what the difference between the two were.