Need loan for house that is sliding down a hill....HELP

bubbleberry · Joined: 07 Jun 2008 Posts: 2

Hey Guys..I am new to the forum, but really need some help.Here is a tough one for you guys...

Myself and my wife want to buy a house..

The house we have found is sitting on the side of a small slope, and as the land was not compacted prior to laying of the foundations, one corner of the house is sinking.

The sink started about 20 years ago, and there has been no movement in 15 years.It is part of a complex, and all of the houses have the same issue, so the management company has hired an engineering firm to resolve the problem.Work begins in a week, and should last 3 months.All owners have contributed to the cost of the work.

We want to buy the house now, it is priced at 50% below market value, but we are being told that we cannot get a loan for a property like this, until the issue is resolved. If it is resolved the price of the house shoots back up...How can we convince a mortgage company to give us the money we need to buy this property.

The land itself is worth more than the house...i have seen smaller plots of land, with no services, and no view, in the same area for 100k more...

How can we make this happen...

Thanks Guys

bubbleberry · Joined: 07 Jun 2008 Posts: 2

Guys..there must be someone out there who can offer some advice...I heard of a "hard money loan" any news on this??

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 28 Location: Rosemount, MN

You are definitely not going to get a secondary market mortgage loan.

"Part of a complex"...is it a single family home? If so and just the bare land is as valuable as you think, a local bank may finance it in house with a substantial down payment. If it is attached housing (ie a row of townhomes) I doubt you will get any financing until things are shored up.

toomtam2 · Joined: 11 Jun 2008 Posts: 4

I think you download this for free.

http://mortgage.thetam.net

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m2c · Joined: 03 Aug 2005 Posts: 743

Not to make light of your situation, but it makes for an interesting issue for a location survey given the “movement”. Obviously you’ve got to get past the engineering issue and you appear to have been proceeding with this. Even if this is successful, I suspect there will be difficulty with the secondary market. You’ll probably have more success with a Community Bank for financing. Generally they have Babbitt mentalities a la Sinclair Lewis and you may well need this “push”.

Not at all clear how mortgage insurance (previous post) might help you situation. MI companies are famous for “excess wear and tear” deductions when a claim is eventually filed after foreclosure.

toomtam2 · Joined: 11 Jun 2008 Posts: 4

Dont Serious Naaa!!! :P

TimtheMortgageGuy · Joined: 16 Jan 2008 Posts: 28 Location: Rosemount, MN

toomtam2 wrote: Dont Serious Naaa!!! :P

Do you post anything that is pertinent to the conversation? :shock: :shock:

Steve Ching · Posted: Mon Jul 21, 2008 10:36 pm Post subject:

It sounds like the existing land "as-is" requires improvement before becoming liveable and occupancy "as-is" becomes questionable.

Do you have proof that the work will be done and funds are already set aside for it?

It sounds like you need a construction loan. You would need a copy of the HOA bid and what is being worked on for the HOA as well as a separate bid for just your legal parcel. A lender would then allow you to buy the house but will require you to set aside funds to make it liveable.

Should the construction loan funds become unnecesary due to sufficient funds from the HOA they would be used to reduce your construction loan balance at the end of the construction.

Option 2 is hard money loan (expect to bring 40% of purchase price to table from your own funds + closing costs).

thriftyfinanciers · Joined: 18 Oct 2008 Posts: 14 Location: london

I think it is rather outrageous that you cant get financing for your situation.
I know a lender who can grant you hard money financing at the best rates despite the condition of the house. You can give it a try by sending the details to thriftyfinanciers@yahoo.com. With their help you can make it happen!