Tuesday, July 20, 2010

We Might Be Selling The Chez.....

It is with a heavy heart and mixed emotions that I bring you, dear readers this news...There is a very slim chance that we'll be selling the Chez..... We sorta put an offer on a house and we're waiting for the sellers to come to their senses and agree to it.....

In the meantime, we gotta figure out how in the heck you sell a house that's mid project....we were totally down in the dumps about the prospects of selling such a 'unique' property. We figured that real estate investors with their all cash offers would be our only option until we learned about this newish HUD loan called a 203k.

The 203K Loan
I just learned about it but it seems to be just the ticket for our situation.
Its a government backed loan where you get to roll the cost of the house, the cost to fix up the house AND the first six months of the mortgage payments into the loan and being an FHA loan they only require a 3.5% down payment.

Here's a good article from sfgate that explains it better than I can.
Here's a link to the HUD website that also explains the 203k program.
Here's a link to the HUD website where you can search for a local lender experienced with the 203k loan process.

The 203k is an FHA loan so there is some additional hoops the buyer has to jump through of course.

I spoke to several different local 203k loan experts and I got the best vibe from this guy.

Luis C. Munoz
Renovation Loan Specialist
Mason-McDuffie Mortgage Corp
6472 Moraga Ave
Oakland, CA 94611
1 510 825-0300 Cell
1 866 958-1869 E-Fax
www.luiscmunoz.com

This is not an endorsement exactly, but Luis offered to make a house call to help me figure out how to best sell this place through the 203k program and I thought that was going above and beyond. If after reading the info above you are seriously interested in the 203k program I suggest you call Luis as he's local, knows the market, and seemed very knowledgeable on the subject. Tell Luis, Chez Neumansky sent you.

Why the 203k Program Seems So Great
Its a program for moderate income folks, to give them a chance to move to a house/neighborhood that they couldn't afford otherwise.
With this loan, you only have to come up with the 3.5% down payment and then when the first mortgage payment is due after the first six months, you rent out the bottom 1000sq ft apartment. That's gotta take a decent bite outta the mortgage no?
You get a 2000sq ft 3bed 2 bath house to live in and a 1000sq ft apartment to help pay your expenses.

Why You Should Want the Chez!

Its a super-cool interesting looking house.
Its in a good neighborhood 4 houses down from Little John park.
It's in the Franklin school district.
Its a legal 3000sq ft triplex. You can keep it as a triplex, or, do what we were going to do and turn the top 2 floors into a single family home and rent out the bottom floor apartment, or, turn the entire place into a giant 3000sq ft single family residence.
The foundation-slab-earthquake retro-fitting are already done!
Electrical service upgrade to 200amps with 100amp sub-panels on each floor.
Upgraded the gas service also and re-piped the gas lines.
And on, and on, and on, really, just be prepared to kill several hours and read this blog.



Its got a super fab radiant heating system installed on the bottom two floors.



The coolest outdoor entertaining area with built in fire pit!






Readers
If you know of anyone who wants to do the 'move to Alameda and restore an old Victorian and raise their kids in a safe environment with good schools' thing, please, please forward this post to them. They have to qualify for the FHA loan remember.

Realtors
I know a bunch of Alameda based Realtors read this blog.
C'mon, I bet you have a couple of clients who might be interested in the Chez. Forward em this post. Its a win-win, we get to sell the house AND if we buy a new place I don't have any need to keep doing my real estate reviews that you love so much, I'm talking about you Alain Pinel Realty.

What's it Going to Cost?
That's the question on every bodies minds isn't it.....
Short answer...we don't have any idea yet....
We do know it will be priced lower than what we paid for it in March '07 AND it will be literally several hundred thousand dollars less than we have into the place....HURRAY!!!

If you are interested in knowing more.
Please email the Madscientist at the link provided on the blog.

Remember the house is not for sale at this time!
We are just trying to gauge interest with this posting.

Thanks,
D&I

17 comments:

PerfessorEvil said...

So when is the knifecatching article? :)
You know, as if 3 years of blogging wasn't enough.

The MadScientist said...

Ya its not like this blog doesn't serve as the worlds most in-depth disclosure statement....

Maybe I'll become one of 'them'. The blog will magically disappear and I'll start telling potential buyers, 'Ya, its just needs some drywall patching and some paint.'

I imagine myself at the center of a huge ring of Realtors with them all pointing at me and chanting,'One of Us, One of Us, One of Us'

Count said...

Hello, and greetings from Finland!

I found my way here through your craigslist ad and stayed up way too late last night reading the blog entries. I've been in love with Alameda and the Victorians in Alameda since I first visited in 1996 and I've been wishing for a lottery win since so I could move over and buy myself a nice one.
I must say that I died a little after every knifecatching entry I read. I do know that the house listings tend to be um..less than truthful but it appears that over here things are Just Not Done that haphazardly. Might have something to do with the fact that the houses need to be warm enough in the winter without killing you with the heating bill or something.
There's a lottery drawing for 1.9M euros tonight, wish me luck and I might be ringing your doorbell next monday :)
I think I'm going to continue with Casa Decrepit now and maybe I get disillusioned enough that I'm going to be happy with what I've got now...

L. Opine said...

I don't want to assume anything about your situation, but if this is a prelude to the "let's buy a new house while our credit's still good and then strategically default on the old one", posting all this in public may come back to haunt you.

Good luck with the offer on the other house!

The MadScientist said...

Count,
From Finland? wow!
Well if you win that $1.9M Euro prize which is more than $2M USD we'd let you buy the place out right for cash! No problem.

Ya our moderate climate means a lot of people can get away with a lot of shoddy work....especially HVAC types...have not met one that was worth their salt.

The MadScientist said...

L.Opine,
We're too honest to do anything like that unfortunately....sometimes I wish we weren't though...so we coulda done one of those shady no money down super low APR for the first 5 year loans that where all the rage back in '07.
What do you think about the price for 1831 San Jose? Seems super reasonable no?

L. Opine said...

1831 San Jose almost prompted me to write a post about it. The house doesn't look all that great from the outside (siding, roof) and it's still twice as expensive as it has any right to be. 50% off would be about right.

Good luck with your house situation(s).

The MadScientist said...

L.Opine,
You really should do a post about it. Its the most ridiculous price in recent memory...

Maybe you shoudl do a post on all the houses that have been sitting on the market for months and months and not sold? Like 1000 Grand Ave? How long has that place been on the market? Or that place on St. Charles with 'lagoon access'?

Count said...

Hello again,

Unfortunately I did not win :(

If you happen to know the folks living in a purple house in a corner lot near the Casa Decrepit, they're my friends I often stay with when I'm over there. Last time when I was around was before you bought your house, I'm very overdue for a visit...

The MadScientist said...

IS it the purple house with the two different front doors? Like its a double house? With the nice gardens?

Count said...

Hello again,

Yes, that's the one, though the garden niceness is currently an unknown to me as I haven't been there in some years :)

Pacita said...

Dear Mad Scientist

Doing my best to tell as many people about your "Casa Decrepit". I have always loved the "bones" of this property. It has so much potential. It would be great to have someone buy it who will truly love to restore the house, and be joyful about each step.

Wishing you luck and good fortune. By the way, your baby has to be one of the most beautiful babies I've ever seen --- do a search of Elizabeth Taylor's baby picture, and you'll see what I mean.

Anonymous said...

downloading to read offline. back after internet is setup at the new location...

lucci

L. Opine said...

Ask and you shall receive. Thanks for the encouragement. You really do have a beautiful little one.

http://www.knifecatchers.com/blog/2010/07/knifecatcher-of-the-month-1831.html

The MadScientist said...

L.Opine,
That was a hilarous review...I especially liked the magical cracks.
I didn't know that, that amazing house sold for $1.4 during the craze...Hell given those specs that seems like an alright deal to me. At least we now know where they got that price.

Anonymous said...

Karma is not going to be your friend.

The MadScientist said...

Anon,
Golly, let me guess....are you a Realtor working in Alameda?

My Karma ran over your Dogma! The Dogma of, Its always a great time to buy, or sell in Alameda!! or Hey, don't ask any questions just do what I say and buy this property... Or, What, its just a crumbling brick foundation, that doesn't really need to be fixed, or, permits? Nah, who needs those!??!.

What Realtors should understand is, fore every Realtor that wishes I would drop dead, there are 10 potential home buyers who love what I do!

If we ever do sell the Chez, we'll price in sensibly and advertise it honestly....warts and all, thats all I really want the dirt bag Realtors to do.