We are officially happy homeowners! It was a whirlwind process, made more complicated by the fact that the house was a foreclosure. But, we just had to have it! And now we have a huge project ahead of us.
Our new home features:
- 2800 sq ft
- in-law suite with separate kitchen
- 5 bedrooms in main house, 1 in in-law
- 2 full baths (1 main, 1 in-law)
- sun porch
- eat-in kitchen
- 2 car attached garage
- huge backyard
- 1 huge and really scary basement
How The Process Started:
The house was a foreclosure in the neighborhood our friends lives in. We’d been house hunting for over a year, really liked their neighborhood, and thought we’d check it out. Luckily the bank had the keys so we were able to look at it before the auction. We went to look at it on July 23rd and instantly fell in love with it and decided to bid on it at the auction on July 31st.
So, then came the planning. Since it was a foreclosure, at the auction you pay 10% of the purchase price and the remaining is due within 30 days in order to get the deed and keys. You can’t get a mortgage to pay for it, like on a regular house, and no bank will give you a loan for it until you have the deed…great…
We borrowed some money from a friend, got a personal loan for as much as we could, and scraped together the rest from what was currently in the bank. We were comfortable that we could manage the purchase price for a few months until the Home Equity loan came through.
You can’t apply for a Home Equity loan until you have the deed to the house and only credit unions will do them at all. But, at least we knew we could get one, we just wouldn’t know for how much until we applied.
We went to look at the house a few more times, crushed some numbers to see how much we thought it would cost to fix (everything needs to be fixed). On July 30th, our basement guy came over to come look at it for an estimate on fixing the leaks in the basement, redoing the roof, and get his opinion on anything else he thought we might have issues with. That way we had a better idea of what we were getting ourselves into.
We knew it was going to be a huge undertaking, but we had finally found a house that we both loved and couldn’t let it go. We got a bank check for 10% of the highest amount we were willing to bid and awaited The Auction.