FHA 203K rehab loans

This type of loan pairs nicely with many probate properties. Many need extensive work and this loan can provide the funds. It is similar to other loans in that credit and income levels must be met. The escrow period is longer though. Up to 90 days.

The buyer must get a bid from a licensed contractor and set out the scope of work. Submitting this to the lender before the appraisal can be done. The appraiser needs this information in order to determine the FUTURE improved value of the property. For instance, if the property would sell for $350,000 not fixed up and the buyer borrows an additional $100,000 to do the rehab, the appraiser has to appraise the property at $450,000 or more in order for the loan to be approved. As you can see, it is helpful if the buyer has an existing relationship with a contractor. Otherwise this process could drag out forever! Appraisal is ordered once the scope of work has been defined and agreed to by the buyer, the buyer’s contractor and a HUD Consultant. The lender coordinates this process with the HUD consultant and if the scope of work is less than $35,000 and the work is not structural, then a HUD Consultant is not required. Appraisal is done on an after-renovated basis incorporating the scope of work and bid.

Also, we need to validate the buyer’s contractor which normally takes about 4-5 days once we receive the completed contractor documents.

Just another tool in the toolbox to close a deal.

DON'T include a check with your offers!!!!

2 months ago an offer for a property I was selling was sent to my office. One of 11! (Just like the boom days) It didn't win. Shucks. The problem occurred when the check submitted with the offer, made payable to the title company, was cashed. I had no record of the check being with the offer. Lots of finger pointing. The buyer thought the money was scammed and wired into some hole over seas. A week later the buyer realized that the check was sent by mistake to pay his *+!%$!*& MASTER CARD BILL!!! Yes, the bank accepted and paid the check even though it was made payable to a title company. I know. you're saying to yourself "huh?". Two lessons learned here. Don't accuse someone until you have all the facts and DON'T include a check with you offers! Just make a copy. I checked with agents having over 100 years of real estate experience and NO ONE had ever heard of this.

Solar shingles...

Whenever I hear about a new technology or improvement, I like to contemplate its effect on the future. I just finished reading up about roof shingles that have solar cells built in. Called Powerhouse Solar Shingle, is so far untested in mass quantities. However, this has the potential to save big money on installation costs which accounts for about 25% of a typical roof top system. They plug-in horizontily and are nailed in just like regular asphalt shingles.



Another example of how we can improve on technology to make non-carbon based power generation economical.

Compare this to the true costs of nuclear from build out to decommissioning, and it becomes more cost effective. Solar just doesn't have the constituency of nuclear and coal to lobby for it. I have great confidence that our ingenuity will make nuclear and coal history.

History of where we die.

I had a discussion with a few buyers that stopped by my isting last Sunday at 785 Cindy Lane in the Livermore Valley. They had a concern that the former owner died in the house. They had reservations about that and the fact that there was a little odor from the deceased. She was not found for almost a week. Wew!

It occurred to me that 150 years ago, it would have been out of the ordinary for most people to have been born and died anywhere but their home.

I wonder why we as a society have a negative feeling about death in a home? Some have issues only if it was a violent death. Natural causes are OK.

Personaly I stop at the front door, say a few words, wish that the deceased is in a better place, one without pain, then go in and do my job.

I thought she owned the house......

Everyone has questions how this could have happened. It seems that the decedent deeded the property to her step-daughter and one other person then took back a life estate. The attorney AND two lenders were unaware of this. The attorney worked on the estate and the lenders lent. AND SHE DIDN"T OWN THE HOUSE!!!!!

It seems the first lender didn't read their title report, WHOW!, and the second lender trusted the first lenders title report. Can you say somebody's in big trouble?

Why did all of this come to the surface? The realtor, that would be me, ran a preliminary title report and, hold your horses, READ it! The decedent was not the owner of record.

After further research it seems one of the owners deeded part of the house back to the decedent. Front part, backyard??? Ha, ha. All parties are scrambling and keeping their powder dry for the inevitable court battle.

To be continued............