It's finally MINE!!!

After a lot of stops and starts and more paperwork then I ever want to see again 200 Oakland is mine.  I spent last Thursday back in Madison Hgts resigning everything.  Now that all the feds are happy and I have the keys I can breathe easier.

Of course the next step is a major remodel and then move.  There will still be lots of going back and forth until the final move which will probably be sometime in August. 

The core remodel will have to be almost done before I move in for the simple reason I only want to move furniture once and I don't want to be in the way while the contractor is ripping things apart and rebuilding.

Advice to anyone else purchasing a foreclosed home.  Patience, patience, patience.  If a realtor tells you 30 days for something, automatically double it.  Same goes for contractors, closing, everything.  Above all, pick the house for location because you're going to be living there for awhile.  Everything else can be fixed.

The '203K' funding program is a decent thing to use if you have to finance the remodel/rebuild.  Make sure that the lender you're using, the closer, the realtor and anyone else you're working with understands the ins and outs of the program.  There are lots of really particular rules that apply that will throw you if you've never used it and don't have someone working with you that understands the program and it's legal restrictions.

Final suggestion, don't get your hopes to hi when you start the remodel.  A good contractor makes it easier but contractors have their own supply lines and if you're in love with a particular store or product there are bound to be conflicts.  I'm an alpha personality and sometimes I'm my own worse enemy.  Patience, Patience, Patience.

I still have a house to sale and that in itself is adding to the long term problems.  But it'll get there.

It's not over until the government says it's over.

Tuesday morning.

Sigh.  I spent last Friday signing a stack of documents, supposedly closing on my house.  Nope.  Yesterday Fannie Mae decided they aren't done yet and now it looks like I may have to sign everything AGAIN.  Which means another trip to Va to meet with the closer and start over.  I talked to my realtor at length yesterday hoping I can at least meet them halfway (Danville) which is 2 hours away.  I'm still waiting to see if that can be worked out.  I'm more than aggravated. Fortunately, I have the weekend pretty clear so if I have to I can drive 4 hours on Thursday, sign a bunch of paperwork, overnight at my sister's and drive back Friday it's doable.

They say hindsight is 20/20.  This is my last house so I guess I should just smile and suck it up.  I wanted this house for a lot of reasons.  It's in the right area of Madison Heights.  It's close to my sister.  It's a ranch.  It was a beautiful home when it was originally built and can be again.  It's cheap.  It will be inexpensive to live there if I ever get there.  It will keep me busy for a long time with projects.

But I will be so glad when this is all done.

Closing happened, after lots of drama.

 Sunday afternoon

Back in Charlotte.  The closing for the Va home finally happened late Friday afternoon/evening after a huge number of phone calls, emails, conversations and texts.  Technically, I'm done, with all the signatures on all the pages.  But there are still issues with Fannie Mae that can't be resolved until Monday morning.  The sale can't be recorded until the Fannie Mae problem is solved so I can't take procession of the house until that happens. Good thing I wasn't planning on sleeping there over the weekend.

Started closing around 4, didn't get done until after 6 pm.  On a Friday afternoon, after hours, when everyone is trying to get out of the office because other life priorities are hanging out there.  Before all this started I was running around with my sister doing other things and watching the time.  By 3 pm I was convinced it wasn't going to happen.  When I got the call at 3:30 to get to the closing office I was more convinced.  When everything is going good closings take awhile.  With as many problems this closing was generating I knew it wouldn't go smoothly. It didn't.

Gena, the closing agent hands me a stack of paperwork to start reviewing while she is running back and forth, trying to solve the final problems.  To be fair to her, she did her very best in a very bad situation.  Part of the issue with the closing was that this particular financing program through HUD has lots of very particular items that I one, didn't completely understand and 2, Gena didn't either.  Turned out she's only closed on 2 '203K' financing loans.
  The first hiccup on the documents; page 1 listed the 'rehab' budget almost $15 more than what I was working with and my contractor had agreed to.  Gena didn't know why.  That was my first phone call.  The lenders had to explain this, in small words, so I would understand the increase.
   The words, 'permits, fees, escrow and 'estimated amount' are being tossed around.  I kept asking 'why estimate?'  I'm signing these documents committing me to the total amount, not an 'estimate'.  The lender keeps telling me when the rehab is done and if the whole amount isn't used the amount will apply to the principal of the loan.  Huh uh.  I'm not convinced yet.  The pen is sitting beside the documents, not in my hand.
   The next hiccup is on page 2.  The interest rate is 6%.  I'd locked the loan in at 4.1%.  My next phone call.  Meanwhile Gena is running back and forth between Fannie Mae and HUD.  When I pointed out the issue to Gena she's frantic.  If that is wrong, then lots and lots of documents are wrong.  This closing just went out the window. 
  My phone call to the lender is a long one.  Turns out that a '203K' loan is a 6% loan, regardless where I originally locked the loan in at.  I'd been notified of this little item by email back in March.  Do I remember that email?  Of course not.  Why did I have to jump through the 'lock in a loan' hassle?  Because when I put earnest money down back in March we weren't talking about a '203K' loan.  Of course this means my house payments are going to be quite a bit higher than originally estimated.  I keep telling myself I"m not keeping this loan very long.  As soon as the Charlotte property is sold, this loan is paid off.  Gena heaves a sigh of relief and keeps trying to solve the problem with Fannie Mae.
  Moving on to the next page.  Still haven't picked up the pen.  The next page starts out with the payments start in August.  Next problem and that requires 2 phone calls.  Last week I"m being told that because this is a 'construction loan' I can't move into the house until the construction is completed.  Because I can't move into the house, my payments don't start until I move in.  I went over that with the lender, with HUD, and back to the lender.  Didn't believe it for a moment.  Everybody keeps telling me the same thing: I don't make payments until I move in.  Now in black and white, payments start in August. 
  The lender starts out with 'you don't make payments until you move in'.  My patience with this is so gone I can't even see.  Please explain this to me in small words because the loan paperwork says something completely different.  Remember that extra $15K on the first page that I questioned?  Turns out the payments that have to be made before I move in comes out of that pool of money.  They are using words like 'the payments are escrowed' for the approximate 4 months I'm not living there.  In other words the loan is paying the loan because no money is coming out of my pocket.  It takes 20 or 30 minutes before the lender finally gets around to language I understand.  I'm not dumb when it comes to buying houses, this is the 6th time I've done it.  But the double-talk with this loan is just huge.
  Meanwhile Gena is closing with another buyer while I'm pacing back and forth on the phone.  It's after 5, the office is officially closed and everyone is going home.  Gena is supposed to be getting ready for her son's graduation.  I haven't picked up the pen yet and there's over 100 pages to sign and initial.
  Finally, somewhere close to 6 I start signing documents.  Gena still hasn't solved the problem with Fannie Mae but she's been told to go ahead and close, as long as I'm aware that I can't sleep there until Fannie Mae is satisfied.  30 minutes after I sign my name the first time I'm done.  The loan is more than I'd ever expected; I'm really not happy with it and if I thought that I'd get a better location on a nice home in Madison Heights I would have walked away.
  The only good thing about this is that I'm not writing a check for several more months.  If I'm really lucky the house in Charlotte will sale sometime this summer and I will only write one check; the one that pays off the loan. 

I met with the contractor the night before and worked out the priorities for the rebuild.  The first priority will be the crawlspace and the drainage in the backyard.  The back of the house has a row of azaleas that will be dug up to fix the drainage.  I hope to keep them so my sister and I put stakes in the backyard to place the azaleas.  By making a hedge in the back I"m starting with the plan of cutting the backyard almost in half and helping keep the rainwater from running under the house.

I drove back to Charlotte yesterday afternoon, carrying a stack of paperwork, a pair of new keys for the new locks going on the Va house and once again in debt for a house.

Tuesday and hopefully almost done.

Tuesday evening on the final week of this adventure in frustration with banks, lenders, appraisers, contractors and probably a whole lot of alphabet groups I've forgotten.

Last weekend only got me almost to the end.  The lender promised me all the i's were dotted and the t's crossed.  Wrong.

Today the lender comes back to me with more questions and requirements.

I had provided (months ago) copies of documents showing that I owned the house in Charlotte.  Now the lender wants a copy of the deed showing my ownership, free and clear, plus the insurance documents showing the same.  Sigh.

Fortunately, all of those documents are stashed in computer files on the harddrive and it's just a matter of finding them.

Next item:  the appraiser comes back with requirements that add to the cost of the remodel.  Things like cleaning the carpets (which are scheduled to be replaced) and replacing both bathroom vanities.  Both are minor things in the long run but both require the remodel contract be rewritten and changed.  Which requires all new signatures on the contract.  Which requires me to print off the pages needing a signature, signing them, scanning them in and sending them to the lender who in turn sends them to the contractor for his signature before the lender can proceed with setting a closing time.

I had planned to remodel both bathrooms sometime next year when my budget recovers some so the vanities that have to be installed now will be the absolute cheapest of the cheapest just to meet the contract requirements.  Sigh.

There still isn't a firm time for the closing.  Sometime Friday afternoon, maybe.  I'd planned to meet with the contractor to take a real look at the kitchen cabinets he plans to order and to lock down the construction schedule.  Juggling his time and my time is going to be fun.  I'd wanted to get back to Charlotte Friday evening but it might not happen until Saturday.

I'm still showing the Charlotte house as often as possible.  With as many showings that have happened you'd think this house would be gone.  I really want this done and it's not happening very fast.  Trying to schedule showing for the Charlotte house from VA gets to be another juggling act.

And it's only Tuesday.

Friday morning. One more week to closing. (Maybe)

Last week I was on a cruise to sunny Mexico.  Just a short trip to get my mind off everything that was happening here.

Not really.  Before I left the things on the must happen list was already falling apart.  First, the white shingles for the new roof had not arrived.  The roofer promised that the roof would be done while I was gone.  Trust him (the company that is).  So I left with a promise.  Got back and guess what, the roof was almost on.  They ran out of shingles on the last day and more had to
be ordered. But it's done and looks good.  The white is really light gray and should increase the efficiency of the roof by several degrees.
 One thing done.

Monday was a holiday and I couldn't do anything to confirm status with anyone.  So Tuesday it's pick up the phone and start down the list of things that had to be done before I can close.
  Is the appraisal done?  No.  The original appraiser hired had to bow out because of a 'conflict of interest'.  No idea what that was about.  So the lender hired another appraiser.  The appraisal landed in my email box yesterday.  Better late than never.  It was a huge stack of paperwork.  Once I sorted out what was really needed, 2 pages told me everything and I can check that off the list.
   Moving on:  next item.
  The lender is having an issue with the termite inspection.  Huh?  The inspection happened back in March.  From what I remember of the conversation between the inspector and me there wasn't anything that was a concern that needed fixing right away.  In other words it wouldn't impact financing.  Signs of old activity, some damage to a couple frames.  But the the report submitted to the lender recommended treatment before the loan could go through.  Can I get it done before June 6th?  Huh?  How much is that going to cost?  $700 plus.  I don't have $700 I can pull out of the air for this.  Lots of phone calls and texts back and forth with the realtor, the termite people, the lender.  Finally a plan is worked out and the cost of the treatment is rolled into the closing costs.  Which means more money next week but the loan moves closer to being finished.  Still have to find that extra $700 next week.
   Moving on:  next item
  The lender is questioning the tiny amount of money I made in 2012-13 as an aviation consultant.  My federal income tax documents declared it: can I send backups?  Like all copies of the tax paperwork for those 2 years?  And a letter explaining what the extra money came from? 
  Hindsight is 20/20.  Should have never declared that tiny amount of money to the IRS.  It raised my income bracket from 21 to 25% and I had to pay over 2K in extra taxes.  At the end of the day trying to start and run my own consulting business cost me a lot of money that the federal government got.  Won't happen in 2014.
    Moving on: next item.
  It's Friday morning and closing is scheduled for the next Friday.  I don't have a time yet.  There hasn't been anymore demands for paperwork at least so far this morning.  The emphasis this morning is a house showing this afternoon and another one scheduled tomorrow morning.  I really need the Charlotte property sold, or a solid contract committing the buyer so I can start planning the move.  And that's another item:  moving.  First investigations into the moving costs indicates that moving from Charlotte NC to Madison Heights, VA is going to cost almost as much if not more than moving from Alaska.  I've got to find a company who will take the TVs off the walls, remove the brackets as well, without charging an arm and leg for the service.  So far it's 'we won't be liable' and won't do it.  That is going to take some work.  Never mind the 'extra liability' for the antique striking clocks.  I'd love to just have friends and family do it but that isn't feasible.  I'd need to rent a moving truck and some muscle if I did it all myself.  I don't have the physical strength to move the furniture.
  I need coffee.

Saturday morning - packing and worrying

Weekends are supposed to be peaceful when you spend time doing the things you want to do, don't check email every 10 minutes and enjoy your morning paper.

I wish.  Yesterday I spent the morning trying to confirm things.  Like the appraisal that hasn't been completed.  It's supposedly been ordered and the company is 'behind schedule'.  And the title search;  it's also behind schedule.  I'm seeing the closing date slipping further.  Then the lender wanted more paperwork and I printed, signed and emailed another pile of stuff.  How many different ways can I say I don't have a current mortgage or car payments?  I feel like I've been analyzed to death.  The lender keeps telling me 'you're doing fine, you've been on top of everything.'  But when I ask for their progress on the final items it's 'we're running behind' or 'you're in our que for completion.'  If the seller starts making noises about penalties for not closing on time I'm going to be saying 'talk to the lender.'

Meanwhile things are slipping here.  I'm leaving tomorrow for a week and I'm trying to juggle a bunch of things.  I met with the roofers yesterday and expected to see a pile of shingles stacked in my driveway.  Nope.  Turns out white shingles aren't kept on hand and are on order.  'Don't worry.'  they tell me.  'We'll be done before you get back.'  Huh uh.  I just have to take them at their word.

Don't have any showing so far today which in one way is good so I can do what I need to do.  On the other hand I need to find a buyer.  Hopefully, while I"m gone somebody will fall in love with this place.

I went across the road and got a mani-pedi so at least that is done.  I wanted my hands to look nice for once.  I have really large fingers and nails and usually they look like I've been digging in the dirt.  Now at least I won't object to shaking strange hands.

I've pulled together everything I'm taking and now I just have to pack.  I'm not taking much, a small carry-on and a large purse with my electronics.  Who needs a lot of stuff on a cruise ship?

Life moves on.  I need this break.

Thursday Rvamping kitchen remodel

After spending yesterday at various home stores I submitted all new materials for the flooring and countertops to the contractor.

The contractor came back with thumbs up for the 'Natural Palm' flooring for the entire house and a formica sample that I'd sent him.  So I guess I can say that part is locked down on the remodel.

Reading between the lines on his email I guess there's a list of 'approved' products that the HUD financing program will pay for.  Good thing I'm not looking at granite and marble.

One piece down, a dozen to go.  He sent me the final sample of 'Winter White' for the cabinet selection.  Guess I should just smile and say okay.  At least the cabinets aren't white-white.  The on-line photos show off white that leans closer to grey than cream.  When I get back to VA in a couple weeks I should be able to get my hands on a cabinet door and use it to finalize things like backsplash and paint.

Originally everything in the kitchen was heading toward pale sage greens and light browns.  Now that everything has been thrown out I have to start over on the whole color scheme.  I have a hunch that the backsplash may tend toward dark brown and reds, maybe rose.  I won't know until I get my hands on it. 

Then I have to choose paint.  And it won't be eggshell.  I really don't like eggshell.  I don't want dark colors and the choices are just crazy.

The other thing that has to be fixed in the kitchen/dining/great room area is the ceiling.  It's an old ceiling with textured paint.  It's been water stained, painted over, patched, etc.  The contractor is leaning toward just adding sheetrock to the ceiling, mud and tape all the seams, then paint everything with a flat paint.  That will leave the textured ceiling in the hallways, bedrooms and bathrooms.  I can live with that if I can get it painted without too much drama.

I know the trend right now is to remove all the texture but I like it.  It's my house.  I can leave it if I want to.

Meanwhile the shingles for my current house are supposed to arrive here this afternoon.  Then I sit down with the roofing people to work out a schedule to put the roof on while I'm on my cruise.  Sigh.  One more thing that can go wrong or get delayed or cost more money.  After all this the Charlotte property better sale before the end of July.