All Forum Posts by: Chris Houghtaling

I have a made a $5000 deposit already that is fine. The problem is that without this $3000 there is a good chance i will be short at closing.. or very close. But i cant get an accurate HUD closing estimate from my mortgage broker..3 estimates so far all inaccurate.. i could estimate it myself if i had good numbers. But it seems to be constantly changing.. Its very close..My settlement attorney is on vacation so no help there..its a mess. I will be using my credit card for the next 3 weeks and if i have enough cash to close (like i said it will be close), i will take my $3000 out then (since its being held hostage till closing) pay of the credit card balance and i should be fine...

I know I screwed up, i had that $3000 cash in my pocket i was driving past my bank i was preoccupied with something and i wanted to get the cash out of my pocket so i shot through the drive through and deposited it. I knew it was a mistake the moment i did it. I was looking at houses at the time, but did not think it would come back and haunt me to this extent. 

I gave the broker my bank statements and told her that i had sold some hi end stereo equipment on craigslist downsizing in preparation for a move, no receipt just a copy of the CL ad with a picture of the equipment, dated to time of the deposit..and a list of other speaker sales that i also made to show a pattern..and my truthfulness.. that's all...and that the deposit was on the 2 months of statements she requested....She seemed to think it would fly...it didn't. 

Live and learn.

To Clarify..the deposit was made on April 28th 

i have found a home in homestead Fl. i have been approved for a 3.5% FHA loan.I had made acash depositof $3000 back on May 28th. it was disallowed for use as down payment/closing but i don't have my loan docs yet and it is now way past the 2 month moratorium on a unsubstantiated cash deposit. I think since the loan document hasn't been written yet it should be allowed. But my mort. broker said she submitted a pre-approval over a month ago and it was on that bank statement. I said if i go to a different lender it would be allowed because it wouild be over the 2 months to the new underwriter....she couldn't answer.

Could someone please answer, when is the date for the 2 month rule..closing? date of pre-approval ? When?

Also another situation has arose with the deposited $3000..please bear with me as i try to describe it..

**The $3000 that was disallowed ..now it seems that on paper i am unable to use that for anything. Because the $3000 will be deducted from the balance when it (the balance) is used for calculating my "cash on hand". If since i deposited that money back on about April 28th and i now know that it will not be allowed to purchase a house,.. i would like to use it for other expenses such as electric bill, car payment, food, etc. and would like to just keep depositing my paycheck and let my account balance rise... make sense? But evidently they dont see it like that. If i decided to now remove the $3000 because i cant use it anyhow (to buy thing for cash to keep my balance up) they will still reduce my account balance later by $3000 when they determine my cash on hand available for closing. (this is what im told) so i cant even use that money... its caught in a "cash purgatory zone" ..and unusable !

As it is now, that $3000 is as if its not even there (to me) and it is unusable to me for months or until closing or whenever that final "cash on hand" determination is made.

My current withdrawl balance since that deposit was made is $4560 for items such as food, car loan, utilities, medication, fuel etc.  well beyond that cash dep. of $3000. In my eyes those purchases since they dont relate to the closing or down payment should be seen as coming from that $3000 reducing that amount up until the $3000 is met.

.***Also if they only look back 2 months, if the deposit was made on April 28th (it was) its already been over 2 months and will be 3 months by the time of closing. 

Question is :

Is this correct and should i be able to use that money for closing now or if not can i take it out and use it.

Thanks Chris

Could i form a corporation, or LLC or just open a bank account with a company name. Buy it at the foreclosure sale under that name and then buy it from that company with a FHA mortgage at 3.5%. instead of 15%..Would that work ? Is that legal ?

If I pay cash at a foreclosure auction.. can i get my money out with a conventional FHA Mortgage. if yes how much %. I would like it all except a small down payment. I will live in the house.

Will the mortgage be based on the appraised value or price I paid.

How long after i buy will i have to wait. 

I rent a home that is in foreclosure.  Last foreclosure court date for the owner is June 5th. He will lose the house. I assume that there will be a auction 1 month later. Can I negotiate a deal to buy the house with the bank before the auction date. (to late for short sale already tried)

Because if i wait for the foreclosure auction, (if i can raise the cash) and if i don't win it, I can really be put  in a very bad position if the winner of the auction possibly giving me 24-48 hours to get out.  (writ of possession) Its a risky gamble!  Also if anyone out there is an experienced broker/agent in foreclosure and would be willing to help in this deal me please let me know.

I'm in Homestead Fl. Like i said "Its a risky gamble to do this living in the home" 

Im pre approved for a loan and there is a possibility i can raise the cash for a cash offer. 

Thanks Chris

hi Chidi

i tried to contact the bank they wont talk to me until the foreclosure is done in one month. i have asked the homeowner about a short sale and he has been lying and jerking me around..the bank wont let him out with a short sale. i have lived here two years i like the neighbors and i don't want to move again..and yes im running short on time..as i am living in the home my ducks had better be in a row because if things don't go as planned or hoped i could be looking at a scenario where i have to move with very little time. I want to buy something, but this area in Homestead has gone crazy in prices and out of my price range for a normal type sale. I am a novice at this stuff and i'm really out of my comfort zone and not sure of how to proceed.. i dont know the process and am inexperienced. it will be my primary residence it needs some work but i just want a fair price i don't need a great deal.

I'm asking if i borrow the cash from a friend to buy a foreclosure. Can i pay them back by financing the home. 

I can get a personal cash loan to buy a foreclosure that im currently renting and living in, my question is how can i get bank financing to pay her back. im pre-qualified for a FHA with 3.5% down. but im told that i could only borrow from the bank 75% of the value to pay her back. How can this be done.

I live in Miami Fl. I currently rent and live in a home that is in foreclosure. The final summary judgement of foreclosure is in 1 month. June 5th. i guessing a sale date of early July. (short sale is out)

I have been offered the cash to purchase this house from a good friend at the foreclosure auction if there is one. (at 0%)

My question is 

1) Can i negotiate a price with the bank before the public auction and buy the house..

2) If i am able to buy the house with the cash maybe 175k, i would need to pay her back of course. .  I am pre qualified already way above the home purchase price, but how can i borrow on a FHA loan "ALL" the money i borrowed. 

Can i Finance or "refinance" the house  90%....

I have some cash myself about $10,000. maybe get my hands on a little more for closing costs.

Do i have to wait a time period to do that? can i do that?

I will live in the house as a primary residence.

Well you get the idea.

How can i work it.

Thanks