All Forum Posts by: Brandon Halley

I am interested in a house on auction.com that appears to be a 3/2 mobile for sale on a 4 acre parcel of land. The reason that I say appears to be is because there is conflicting information.

On auction.com in the description it says for auction is a 3/2 mobile on 4 acres. It has an inspection report of the interior with pictures of both the inside and out. 

On the assessors website, the land and the mobile have not been purged. The land is in the name of the foreclosure bank. The mobile is still in the name of the previous residents. The assessor told me it's possible the paperwork just hasn't been updated yet, but the auction is happening very soon and I am hesitant to bid in fear that the foreclosure bank perhaps does not in fact have rights to the mobile. 

Does anyone have any experience regarding the foreclosure process of a mobile that has not been purged and that may be helpful in this situation?

If I purchase it after all, I would like to get everything in my name and purge the two titles. Rehab and then sell or possibly rent. It would be my first mobile home purchase. If there is anything about this process that may throw me a curve ball or just general tips feel free to chime in on that as well.

Hope you are enjoying your weekend, Thanks!!

Thanks for your thoughts! @Ruth Bayang @Mike Hanneman

I have been planning on doing a quit claim deed from the beginning in the case I decided to keep it for a while. Is it possible to obtain an FHA loan if I already own the house? I also dont have much consistent income over the past few years as I have been living off borrowed money. I have a cosigner if needed. I would like to lock in as much money as possible while interest rates are low.

I am weeks away from completing a major rehab project and I am looking for opinions, advice, and possibilities regarding permanent financing. 

A quick background. About a year ago, under my LLC I bought a distressed foreclosure using a private lender. I have since then done a significant rehab and improved the value, on top of a good buy. The house is now worth around 325k and I owe approx 145k to my lender. I am currently living in the house.

I would like to continue to live in the house for at least 2 years to take advantage of the capital gains incentive. I also would like to obtain permanent financing, pay off my private lender, and pull out as much equity as is safe and possible for my next rehab.

I know I should probably just go talk to a mortgage broker in town but thought maybe I could get an idea before walking in. I have never owned a house under my name before and thus never had a mortgage either, which, got me wondering maybe I could qualify for a first time homebuyer program. Basically, I'm just trying to figure out the best financial course of action once its complete. 

I have a bid on a few properties with them and have figured out a few of there tricks. 

First off, yes they will bid on the sellers behalf although it is impossible to tell whether it's them or another serious buyer. It is part of there strategy to make sure you place your 'highest and best.' 

They contract these properties generally through a bank which decides on a reserve price. This reserve price I have found out comes in two categories: hard and soft (just ask). If it is hard, they will not entertain an offer below reserve. If soft they will. At the end of an auction, the bank will get a report with information on the auction and participants with notes attached. I have found this to be the secret passage of communication with the banks asset manager. You can ask Joe Bob at auction.com to specifically, and politely, put a message in your notes. I.E. 'This is my highest and best offer. Next week it will be less.' If a property doesn't meet reserve it will come back up for auction again the next week until the contract is up. You can find out how long this contract is just by asking. I have seen some properties get re-auctioned for months.

The only thing they are not allowed to tell you is the reserve price. But even this you can get a general idea of. If you get in touch with there 'sales team' they have a system of grading your bid on its strength (how close it is to reserve). The grading is A through F. Just like grade school. A+ is it's at or above reserve. F being way off. I am currently working to plot my bids on properties while obtaining a rating each time in order to crack there algorithm (Actually, its looking pretty linear). Also, there bid increment decreases as you get closer to the reserve.  If you see it goes from 5k to 2.5k, you are getting closer. Minimum bid also drops in the last 15 minutes or so unrelated to your proximity to reserve. There may be more to this. 

Hey Devon,

I know of the mobile you are speaking of and would be happy to share my thoughts.

If you look at the price history of this home it was originally listed 5 months ago for 155 with no bites and has since then dropped to 140k. It has been under contract 2-3 times since and both times fell through. This is most likely because mainstream financing and REO properties often don't work well together. The deadlines of the lender are hard to meet for a foreclosure bank that is slow, inefficient and 2000 miles away. The house did at one point sell for 190k but this was not 3 years ago. It was in 2006 - just before the crash.

A few things to note about the property that must not be overlooked. The road the lot is on is not a County Rd. It is privately plowed in the winter and if you talk to the neighbors, a 4x4 is a must. Sure 3 acres sounds nice but I'm not even sure you could squeeze a carport in anywhere. 

Currently there is an almost exact replica (3/2 1200) next door for rent. $875/month. I contacted the landlord who said this price yields zero vacancy and good tenants but thinks 1000/month would be pushing it out there. There are also 2 similar mobiles in Durango West renting for 1200 with plowed county roads. What makes you believe you could get 1300? It could be possible just unsure..

I ran the numbers at 1200/month and it does not meet the 50% rule. Although I don't think anything in Durango will ever... 

It has a water tap and a great looking septic and is in good shape.

Ultimately, I do think it is priced a bit low.

Brandon

After day dreaming of owning a home for years, I finally took the leap and bought my first place just over a year ago. I borrowed 160k cash from friends and family with an offer they couldn't refuse and bought the cheapest house in the county at the time. It had major code violations, everyone told me it was a tear down. As a carpenter with an engineering degree, I looked into other options and found a way to keep it alive and turn it into a very nice home. Lots of sweat equity of course, but it sure beat selling my life away by the hour to someone else. It was the scariest thing I've ever done but it is now worth around 300. I have done one other similar deal since and I think I may have found my niche. I know I have a lot to learn and am eager to explore more unknown possibilities. Looking forward to getting to know some like minded folks. I strive for positivity, creativity, and an open mind. As some people may call it, I like to 'work' hard.