All Forum Posts by: Andy J.

If you have a laptop, or they have a computer handy many mortgage companies have a website where a borrower can login and gather most if not all of this information.

The listing agent works for the seller, not for the bank so they can't "betray" an obligation that was never present. The listing agent is responsible for representing the best interest of the seller, so if the seller's best interest is to drag their feet and try to work an alternative solution with the bank then the listing agent has to follow suit. Short Sales take a long time, that's why they sell for less, 3 months is a short time frame, 6 months average in my experience. If it's worth the wait, hang in there, but as a short sale nothing is for sure so don't be surprised 6 months later if the bank doesn't accept the offer and forecloses.

This is the first time I've heard of a penalty for not following the terms of the deed restriction. 90 days is a standard deed restiction for FNMA properties, although in rare occurences the restriction never makes it to the deed or paperwork (search for FNMA deed restrictions on the forum).

Since it is a deed restriction on FNMA properties it will be very difficult if not impossible to sell the home to a retail buyer due to the fact that themselves and/or their lender will require title insurance. Because of the deed restriction you probably won't be able to find a title company (or closing attorney) depending on your state that will provide title insurance for your buyer under the 90 days.

Is the 90 days really going to affect you at this point? How much time to repair the property, then how much time on the market, then how much time to close after an offer? 90 days is a short time frame given market conditions and the time of year.

A quote worth holding onto. Well put.

Depends on what your market calls for. In certain areas granite counters are expected. In my neck of the woods the laminate granite looking counters work great. If the dining room is open and connected to the kitchen, extend tile throughout both and keep the hardwood in the living room. As Marc said, there's some great laminate flooring out there for good prices, it's amazing what they make these days.

Good thought Bryan, but that only solves half the problem. It's not just that you are essentially lending money to yourself, the key component here is that you are indirectly benefitting. No matter how different the terms of the notes, you are still receiving benefit as a result of acquiring the loan from the other party.

I have heard of pools of reciprocal SDIRA loans where it would be much more difficult to prove. It's easy for the IRS to show that 2 people had performed a mutual transaction, not a huge paper trail there. However, in a reciprocal SDIRA pool; party A lends to party B, who lends to party C who lends to party D who lends to party E who lends to party A. This of course requires much more work to prove it was a sham.............it's still a prohibited transaction though.

Here's a good link to some other mistakes that should be avoided when dealing with Self Directed IRA's.

http://www.nafep.typepad.com/

This strategy would be considered a prohibited transaction. While at first it appears to be legitmate, the "indirect" reciprocal lending of money constitutes a prohibited transaction, as you are indirectly benefitting. Note: I'm not a tax attorney or CPA.

USC Title 26, Subtitle D, Chapter 43, 4975

(c) Prohibited transaction
(1) General rule
For purposes of this section, the term “prohibited transaction†means any direct or indirect—
(A) sale or exchange, or leasing, of any property between a plan and a disqualified person;
(B) lending of money or other extension of credit between a plan and a disqualified person;
(C) furnishing of goods, services, or facilities between a plan and a disqualified person;
(D) transfer to, or use by or for the benefit of, a disqualified person of the income or assets of a plan;
(E) act by a disqualified person who is a fiduciary whereby he deals with the income or assets of a plan in his own interests or for his own account; or
(F) receipt of any consideration for his own personal account by any disqualified person who is a fiduciary from any party dealing with the plan in connection with a transaction involving the income or assets of the plan.

I think the best answer to your question is going to depend on a few variables. Is this a good deal if everything checks out, still a good deal if you have to repair some burst pipes? What style of home is this, ranch on a crawl space where there's less plumbing in the walls, or 2 story where an upstairs plumbing leak can do a lot of damage? Does it look like someone has done DIY repairs that appear less than professional? Did you open the breaker panel and look for modifications?

There's another option as well. You can pay a contractor to pressure test the plumbing and you can pay a contractor to bring a portable generator to power up the house to test everything. If it was winterized you have a better chance that the plumbing is okay, but I wouldn't rely on that alone.

I second Marc on all points. I had replaced an exterior faucet not too long ago, in a pinch in a hard to get to spot in the house and it was $125 materials and labor. If it wasn't a "get it done asap" rush then I think one of my current contractors would probably charge $80-100.