Goodness Gracious Alive....our Gov't and mortages in 2012...Whine!

[DDD]

I'm "half" in my cups and stressed out almost to the max. I NEED to get easy child/difficult child (aka difficult child#1) into a house of his own. Really, guys, this is a whine. I am pooped. I am not ignorant. He has thirty grand to put down on a house and a letter showing he will receive over a grand a month in disability. We have found a house just under $55,000 that is in "almost" good repair and I'm having difficulty getting a mortgage committment.

Prepare for a WHINE. The blankin house last sold for $110,000. It is in forelosure and the asking price is $54,900...as is. He has a grand for the roof repairs. He probably has the cash for other required repairs BUT "they" are requiring three years proof of income to show he an pay the mortgage. WTH! Yea, I know I am "almost always" polite and nice but I am also a business woman who supported five people on real estate commisions. How does it make sense? The SS office shows he will be receiving over thirty grand in a lump sum and over a grand a month BUT...there is a question about whether he can or can not meet the monthly payments.!!! Eh Gads.

Bless your hearts if you have not dealt with the Gov't. I think either the world is nuts or I am too old. The Gov't puts in writing that he will receive over a grand a month. The Gov't is providing him back pay for the years he denied his disabiliity. NOW they want proof he has had this same income for the past three yeras. Heavens to Betsy. Somthing is messed up in this Catche 22. Whine. DDD

 

[klmno]

Have you seen the lawsuits lately about big mortgage cos/banks that got people into houses, knowing they couldn't feasibly afford it, about 8-10 years ago? This is why they are requiring all this now. It might be that his girlfriend needs to be on the mortgage with him. I know you want to get him in his own house but I can see a little reluctance on the side of the lenders.

Why not just slow down a little? Work with lenders to see what will help them feel more confident; pick a few houses out that are within budget and let your grandson make some choices about what he buys, too. This will be a place he has to be in a long time and maybe even the rest of his life.

Just my 2 cents. But I feel for your frustration- buying a house is always stressful but there are added "features" to this situation!

ETA: Have you considered your and your husband's name being on the mortgage?

 

[DammitJanet]

I get it. Anyway you can find one that he could takeover the mortgage on? Or DDD, you may have to consider something I know you dont want to consider....cosigning. If you do that it might not be that bad because you will be his payee and you know you are going to make sure his mortgage gets paid first so you dont really have any worries there...at least until after you are long gone and then the mortgage company cant come after you!

 

[Hound dog]

DDD.............. I wonder, and I almost hate to ask since you already have so much on your plate........if it would be a good idea to look into HUD housing for difficult child, not RENT; ownership? They would understand the whole disability thing (because that is the reason he would qualify) and it would get him a good home in good repair (because it has to be by law). I'm not sure but I think realtors know or can look up HUD listings in your area.

The house on the corner from me made me think of this. It was a HUD/sold home. So was the house we rented before buying this one, although the woman who purchased it bought it outright instead.

You never know. It might give you better options with less headaches, plus payments you know he'll be able to afford.

Otherwise.......I dunno. I know Nichole and her husband were pre-approved and still had a major dance to go through that was ridiculous, husband and I never had to do what they did and our credit was way worse than theirs. Banks/mortgage co's are skiddish right now.

 

[tiredmommy]

I agree... mortgages are difficult at best. Our contract was signed on 9/7 and we should get our committment letter finally by the end of the week. And we have excellent credit and already have had a mortgage. Oh, and husband works for the bank.

 

[witzend]

In all fairness, Social Security and whatever office wants this information for a loan have absolutely nothing to do with each other.

Relax and take a breath. If he HAS TO GO before you lose your mind, maybe you could get him a short term lease to get him up and running.

 

[InsaneCdn]

That back pay IS his "last three years of income".
30 grand is 30 months of 1 grand a month (well ok, so that's 2.5 years... pretty close)
He just didn't get it on a monthly basis until now.

Don't know if that logic will work with the bank, or not...

 

[DaisyFace]

DDD -

Ugh! It would be so much easier to buy a "For-Sale-By-Owner" situation. Govt regs stink!

 

[DDD]

I'm more chilled today. No news is no news, lol.

Good point about his backpay being his income for almost three years. Serenity Prayer time, lol. Thanks. DDD

 

[Marcie Mac]

I don't know if this idea will be of any help. A few of Dannys friends whose credit history was just wacked due to hijinks when they were younger have landed homes on a rent to own contract. When I bought my house, I took over a VA loan - at the time they didn't even ask a lot of questions and I didn't even put money down. Maybe look for something like this if they are still available. Maybe a habitat for humanity housing? Danny works for a large credit repair place and they do have real estate agents and attorneys on the staff that helps with homes=foreclosures/rentals, etc.

Marcie

 

[DDD]

Whine...Part 2...Sigh. The lowest mortgage available is $40000....so he can NOT get under that. The backpay that he is receiving is over thirty grand and must be used by x date in 2013 for an approved purpose (home, car, education). ou can NOT have more than $2000 in savings at any time with-o notifying SS.

The Disability Rep who met with us to explain "the system" laughingly said "you are not allowed to have two thousand dollars in savings and must notify us if you inherit, win, earn etc. that much money BUT (laughing) you can own a half million dollar mansion and drive a BMW without question".

It won't be a Beamer but I guess difficult child will be getting a new car and alot of new furniture etc. It appears it can't go to the mortgage and it has to be spent. Crazy. DDD

 

[InsaneCdn]

DDD...
Any chance he could get a homeowners line of credit on a house he just bought?
It's one way they get around the "mortgage" limits here.

E.g. pay $25,000 down, and get a $15,000 HLOC on the house... (and use the othe 5 grand for furniture and whatever)... depending on what you have to pay for the house? Here, they will give you up to 50% of what you paid for the house, to a max of 100 grand if your income supports the payments...

 

[klmno]

Can he use it to buy a lot? There are some pretty nice RVs out there! (Just kidding!) But I do wonder if he couldn't get a lot and nice, newer mobile home or get a pre-fab house built for him.

After reading those latest requirements, it sounds like there's no choice but to use part of it for a downpayment then the rest for other "big" items.

 

[DDD]

Because we live in central Fl. I want him to be in a CBS home that tornados and hurricanes can't blow away, lol. Truth be know, however, alot of monied retirees live in manufactured home communities and love it. Some of them cost alot more than some CBS homes. Good idea KLMNO.

Insane I don't "think" that will work as he has no work history for seven years when he had brain surgery at eighteen. I'll know the first of the week. If it's not going to fly now then I'll hang on to most of the bucks and hope to find the right thing in 2013. It is complex and frustrating. Serenity Prayer time. DDD

 

[svengandhi]

I understand your frustration.

I earn over $100K per year and have been steadily employed since 1983 with only one 7 week period of unemployment. H is self-employed and usually earns about $35K/year, rarely less sometimes 4 or 5 times as much. We have owned our home for more than 15 years. It has doubled in value and I have equity in it. My current mortgage is about 50% of the purchase price, not the current appraised value.

I have been unable to refinance and I have been trying for over 2 years. I can't fathom why I am having such trouble but if I am, I can't imagine how someone like your grandson could get a house. Maybe you should look for a condo instead?

Good luck.

 

[DDD]

Thanks for the good wishes. I don't understand why you would have difficulty either. IF the mortgage people can't come up with a way for difficult child to get a home then I will be limited to seeking seller financing. Honestly If I were prepared to pay 6, 7 or 8% interest AND the people have resources they would be getting twice the return on their money compared to CD's and T Bills.

Really I just can't wrap my head around them wanting the highest mortgage balance possible. Maybe that's why I am a senior citizen with limited means, lol. Personally I would find a foreclosed house worth in excess of one hundred grand an awesome investment with only a twentyfive grand mortgage. Geez if you have to foreclose...you just can't lose much unless the whole country goes into a full depression.

End of subject. I promise. We find out Monday night. I'll tell you if it's good news. Fingers crossed. DDD

 

[DammitJanet]

DDD....that is why they are called wind zone 2 homes. We also get the hurricanes up here and in certain places next to the coast you cant put anything under a wind zone 2 home. Also, if he buys a lot along with a wind zone 2 home, he is building equity because land is what goes up in value. as we have seen in the past couple of years, houses can fall as fast as mobile homes. I would have been gobsmacked to ever think a 800K home could lose its value down to 300K but they have. You just never know but later in life your difficult child 1 could use his lot and turn in the mobile if you are smart enough to brick it in to turn that over as a down payment on a regular home when things look better for him. By the way, if you brick the home in it makes the home more valuable. Just something to think about.

 

[Fran]

DDD, my experience with disability was total shock since everything is set up to prevent abuse of the system.( which we all know exists.) Someone like me who is stupid about how the system works is shocked that my difficult child can't have any family assistance without being deducted from his next months check. If you never took any of the hand outs, you think it would be logic based but once you see how easy someone can get dependent and not want to get off you understand the government employee's are in constant defense and always suspect you are abusing the system. I have had no positive interactions so far and avoid it at any cost.
It will be one of my happiest days when difficult child works and doesn't need this service. It's necessary for him to be in the system but I pray it is temporary.
I don't envy your interactions with the system.

 

[DDD]

Fran I completely understand. In fact husband and I were talking about the "strangeness" the other day. We are both old and have health problems. IF there is any money that remains after we have passed on it appears we can not legally bequeath (big word for a small sum, lol) anything to him with-o it being offset by payment reductions. In the back of our brains we hoped he could pay off his morgage (which we anticipated would be low) with his inheritance and then we would know he had a place to live for his lieftime. It is not our nature to circumvent regulations.

Furthermore if he is allowed to remain on disability his income will be reduced to under $800 a month. The regs say very very clearly you can not have one cent more than $2000 at any time or you lose your monthly income. It, of course, does not make sense for taxpayers to give money to someone of means but having a small nest egg reduces anxiety. And then...they encourage you to seek our employment. What? Who knows what hoops you'd have to jump then. Whine. Whine. DDD

 

[InsaneCdn]

You'd have to run this by "professionals", but... if the house were in your name as well, with "joint rights of tennancy" (which means if you and husband die, all of the house automatically belongs to difficult child), it might be possible for your estate to payout "your part of the mortgage" before transferring your rights in the property to difficult child?