Is this really a deal or not?

[Elizabeth Matos]

I am a hesitant newbie from california and boy am I scary to loose my ***. Need some help here.   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?