|
CASE STUDY
203K Streamline Success for REO Property Sale
|
NO COST FOR IMPROVEMENTS TO SELLER
All work done after Close of Escrow
This bank-owned property in Salinas was in a state of disrepair and did not pass the FHA appraisal because of health and safety issues (dysfunctional bathrooms, broken floors, non-working kitchen, etc.) Of course, the house was not selling.
With our help, the buyer selected contractors to repair his home. We then included the $10,000 needed for these repairs (including a 10% contingency) in a 30-year fixed FHA 203K mortgage. The mortgage was approved and the transaction was completed in 62 days. The rehab work started as soon as the property closed escrow and was completed within 35 days. The contractors were paid and the buyers moved into a nicely renovated home!
Accepted offer $120,000 dated 3/16/2009
|
|
Improvements:
| Remove illegal bathroom |
$2,900 |
|
| Remodel existing bathroom & kitchen |
$2,800 |
|
| Remodel illegal garage |
$1,000 |
|
| Repair ceramic tile |
$500 |
|
| Paint interior rooms |
$1,200 |
|
| Install carpets |
$1,458 |
|
| New Sears EnergyStar range |
$739 |
|
| New Sears EnergyStar refrigerator |
$1,164 |
|
| |
|
|
| Total improvements included in 30-year fixed |
$10,761 |
|
No cost to seller for improvements. All work done after Close of Escrow (COE)
Appraisal 3/26/09, as is $120,000
With improvements $150,000
Transaction closed June 1ST, 2009
Sound Mortgage - 4604 Scotts Valley Drive Suite 12 - Scotts Valley, CA 95066
Office Phone: (831) 461-0100 Fax: (866) 208-9492 Cell Phone: (831) 247-5573
We lend in the following states: CA, WA, OR
© 2010 Myers Internet All Rights Reserved
Powered by: Myers Internet | Admin Login
|
