Liz's first bid

[Elizabeth Matos]

Well I found a property in Menifee Ca.  It has several advantages. It is very close to the contractor I am working with and in a nice neighborhood.  The home has been vacant for 7 years and now it is a short sale.  The asking price is 220,00 It's a 2bd/2bath with 1255 sq. ft.  I offered 187,000 and yes I know that is more than the 70% rule but I feel I continuely get out bid because I am bidding too low  and then don't get another chance.  although the residence is missing an air conditioner and furnace, the property is in very good shape.  The Landscaping needs a total revamp.  As does exterior paint and facia.  

    The loan I have gotten approval on bothers me a bit.  It is for 200,000 with 25% down for 3 0r 5 years with 10.99-11.25 interest rate.  Yikes.  So I come in with 50,000, the mortgage would be 1450 and I pay 4-6 points.  Now if I don't want a prepayment penalty then I can buy that by paying 1 more point.  I hope I am presenting this correctly.  Somehow this does not seem like a great deal.  but what if it's all I can get?