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Friday, November 26, 2010

Farm closing will be delayed a while...

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Hope you all had a great Thanksgiving!  I can't complain about being fed wonderful food at 2 houses - lunch at my parent's, dinner at my in-law's!  Yum.

An update on the farm; we were supposed to close on Nov 30.... that is not going to happen.

There are issues with some back taxes owed on the 2 mobile homes sitting on the property - kudos to our awesome Realtor - she was able to find out whose names the trailers were in, and also found out about the back taxes.  The seller is going to pay the taxes owed, then hopefully we'll be able to get a title transfer even though we have no original title.  We were nervous about the mobile homes because there is no title for them, and they're considered personal property so aren't automatically included in the home sale.  As we intend on fixing them up (my in-laws will be renting one of them eventually), I want to make sure we can somehow get titles for them.  This is one of the reasons for the delay.

Another reason is the appraisal.  The value of the home came back great on the appraisal, however there were very few comparable home sales in the area - this makes a bank nervous.  So, even with our great credit, good down payment, etc. they are only going to offer us a balloon loan.  Once we get the house, outbuildings, and acreage fixed up we can refinance (and hopefully by then the market will have picked up and there will be comparable sales in the area). 

More... the bank won't go through with closing until the property is habitable.  That means that BEFORE closing we need to get the cut pipes in the basement fixed, the furnace running, the 2 mold areas cut out and repaired, the well & septic running, and have the water tested and test results back with drinkable water. 

Whew!  It may be awhile...  :-) 


2 comments:

  1. Hi Penny,

    YOU have to do the work BEFORE the closing?!? Wow, banks have certainly swung to the opposite end of their previous spectrum, haven't they?

    Good luck.

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  2. Hard work, but sooooooooooooooooo going to be worth it in the end. I seriously think you found a real gem, I can't wait to see it all fixed up! :)

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