All Forum Posts by: Chana O'Leary

Followup - I gave them a check for the entire price of the house. So, that's sitting in escrow doing nothing as well.

Is anyone here dealing with banks seemingly dragging their heels to close an all-cash deal? I put the asking price offer in the last week of September. I asked for a 15-day close. The real estate agent laughed and said there was no way it was going to close in less than 30. Then a week out from the 30-day close they requested another two weeks. Now, that's passed. I don't know when it's going to close. Realtor just keeps telling me he'll "call" when the paper is "ready".

This is ridiculous. Winter is coming and I'm concerned about getting into the house and getting it heated (system needs a new part).  We're already having low 20's up here. Most galling is: If *I* had asked for any kind of extension - I would be getting dinged for $100 a day for every day over! There is apparently no downside (and no incentive) for the bank to get it off their books! You'd think they'd be glad to move it! Anyone else had this experience??? TIA!

Thanks @Kenneth B and @George P for your comments. I have a bit of an update from the lender. They are starting a program with slightly better terms - and a bit more stringent requirements upfront. Essentially, the terms I quoted in my first post were their "no doc" loans. Their new program is 30 years, 7/1 - 9.5% interest with 25% down, credit score of at least 630 and proof of six months reserve funds for mortgage payments. Slightly better. Again, I qualify for this program as well. I DO like the idea of "manual underwriting"! Could you explain why a bank would want to do that? :-) Thanks again for your assistance!

Hello all,

I've been a BP "lurker" for several months, but now have some money to invest and would like some expert feedback.

I am looking at a triplex in a good neighborhood, in a small "artsy" town in central New York. Rents and median incomes tend to be higher here. The triplex is in excellent condition, no rehab necessary and is priced at $69,000. It is 2,289 sf with three units - a 2 BR, and two 1 BR. The house is an older home built in 1880, but it has been maintained well. The tenants pay $800.00, $700.00 and $650.00. Landlord covers utilities. According to the BP Rental Calculator, allowing for 10% maintenance and vacancy - it should generate approximately $450.00 positive cash flow.

My issue is the HM it will take to get this property. My lender requires 35% down, 3 pts, and $1,495 loan fees with (ouch) 17.99% interest. They have a couple of different programs - one is a 10/3 program and the other is a 5 year fully amortized loan that effectively will wipe out most of the positive cash flow for those 5 years. So - do I take the risk of the balloon payment after 3 years (I have to confess I am not comfortable with a balloon lurking on the horizon given how markets can change on a dime these days (or so it seems)). Or does fully amortizing the mortgage and eating the cash flow now for future cash flow make more sense. I am working on restoring my credit after a divorce - but it is sufficient for these folks to loan to me. I have a great monthly income and can easily cover the 5 year amortized payments - but, would be retiring at the end of that period anyway.

I hope I have explained this clearly - but please let me know if I haven't - and which route you would take in these circumstances.

Thanks very much in advance.