All Forum Posts by: Doug Seaney

I love doing the work myself.  for me it's therapeutic, i enjoy a hard days work in manual labor.  gives me a chance to unwind from my regular stress filled day job.  I have done cabinet install, ceramic flooring, electrical, plumbing, painting, roofing, windows, finish carpentry.  about the only thing i wont tackle is working boiler system.  And i am thinking roofing isn't so much fun anymore :)

Been slow to update this thread.  We bought the other two lots for $5,000, the listing agent gave me $1,500.  I am still countering with my buyers agent.  All things considered I'd say the outcome is acceptable.  Ended up with about 5 acres and 1300 square foot house and 24x30 pole barn for about $27k. 

We are deep in a major renovation - so I have  been spending most of my spare time at the house.  The house is a real basket case but no real surprises yet.  Best guess is it was built around 1936, guess they weren't big on using headers over door and window openings, that's a story for a different thread.

Executor has un-listed all 4 lots and verbally says they want $10k for the two lots that are involved in my encroachment issue.  I am talking with relator to see about making  them an offer.  substantially below the $10k, as the lots are only worth anything to me and they can't sell to anyone else knowing they'd have the same encroachment issues.  I am still thinking the original bank will get this crammed down on them, and they may still have rights to re-foreclose - thus gaining the estate zero, so in theory they'd be wise to take what they can get from me and run.  If/when I get to an agreement on price I will have established my loss.  Once I know that I am thinking to sue the listing agent in small claims court unless he willingly coughs up some $.  I'd think the least he could do is give me back his $1500 commission, that along with my buyers agent's $1500 and a couple grand from me could put this to bed.  The big IF is if the estate can get realistic on the real value of the lots.

Update - Freddie is supposedly looking into this.  So says the listing agent.  I suspect they will try  succeed to jam this back on the original lender.  I've been on the receiving end of FNMA look back, as a lender you don't really get a choice and timeframe is quite irrelevant.  Unfortunately for me that wont really solve anything from my perspective unless Freddie give me my $ back in the process.  I really would like to keep the house / project.  Not sure how motivated the original lender will be to pay any extra toward me buying the extra lots, considering they will be hurting from Freddie asking for the full loan amount back.  They may opt to re-foreclose. 

The listing agent for the vacant land is supposed to be pinning the estate down (did I mention that the origainl owner is dead?) as to how much for the 2 or all 4 lots; once I have that I can see if between the two realtors and myself if we can agree on who pays how much to buy the lots. 

Still in holding pattern for now I guess.

The first update from realtors was that they tried to get the title company to help - as i thought the title company said no way  "we insured what you bought".  I Just met with attorney yesterday.  Good news / bad news is that he is on Freddies approved list to do foreclosreus for them, good in that he knows the workings of the beauracratic mess that is Freddie Mac.  Bad in that he doesn't want to show up on a lawsuit suing one of his best clients.  he is asking another attorney in a different practice to take point but he'll give pointers from behind the curtain.  Attorney is pretty sure we have a strong case - just need to get all parties in the same room and motivated to negotiate. 

I also talked to the realtor that has the vacant parcels listed for sale and she tells me that the mom is also deceased so this is to settle estate.  daughter is the executor, not sure if this makes her more or less motivated to sell me a lot or 2?  Realtor does understand they cant really sell all the lots lest they sell with an encroachment issue as well.  Attorney thinks we need to file a lis pendens ?  sp?  that will restrict them from any action on the lots in question until this is resolved. 

Hoping to get a purchase agreement with estate for the 2 lots contingent on all sorts of stuff :)  then take that PA to the parties involved and see if everyone can open their wallets and cover the PA amount.

We got stuck on cabinets - I didn't realize the lead time for order to receipt.  we lost about 2-3 weeks waiting on them to arrive.

As @Lynn McGeein said more people will be priced out of the buying market. If those priced out of the buying market are owners vs. investors that (in theory) means they will be renters thus driving up cost of rent. So you can gain back some of your cash flow that way too. When housing market tanked 08-09, and many people couldn't qualify for a mortgage due to credit issues not DTI, the rental market (IMHO) showed a spike in rental rates.

@Jessica Zolotorofe I sent you a private message

the old mortgagor owns the other lots.  Not sure what "blocks and lots" are... assuming it would be lot 5 of block 6 of Cameron's lumber company addition to the village of woodland park?  If land was officially placed in a subidviosn yes we use lots.  the part I bought is metes and bounds

https://en.wikipedia.org/wiki/Metes_and_bounds

The land I bought butts right up to lots in a subdivision - and that is what the house sits on.  Representation by the bank / Freddie was a realestate listing that said 3 bed 2 bath house with a dozen pictures of said house.  I've asked my realtor to print that out before it miraculously disappears from the records :)

@Jessica Zolotorofe the survey was in the exception section of the title commitment, however this is what my title attorney friend said was intended for minor encroachments, not for selling the entire wrong parcel.

@Mindy Jensen - Yes it is a very interesting riddle, I find it very intriguing even though I may have my butt in a sling :)  If I wind up with 3.5 acres and a pole barn I guess I didn't get such a deal as I thought but still not too far off actual value for a buildable lot with a good sized pole barn.  I will for sure report back as this unfolds.

@Tyler Sterns  Yes the original owner of the parcel I now own is the current owner of the other lots, about 80 years old and unknown mental / physical condition.  I am hesitant to reach out to them until I know what my options are with Title Co, Listing Realtor, Freddie, etc.  that will help me know how to approach this. 

Years ago at a bank job we foreclosed on the wrong parcel, but we found out before we sold it and reached out to the former owner and offered 1000 bucks for a DIL of foreclosure.  worked out just fine; but we DID originally mortgage the correct parcels, which in this case didn't happen.

Trying to find the bright side - with no heat in the house and being in Northern MI I really wasn't too excited about working on this all winter long, supposed to be a high of 5 degrees next week!