The House Debacle (Catching Up)

So...if you were reading my blog in April and May you know that we searched through about 20 house tours (and countless online listings) and put offers in on five houses.  The first one we couldn't negotiate a price after a week of back and forth from the home owner (short sale).  Two we were out bid on.  One when we heard there was four other offers we simply withdrew our bid the same day.  And the fifth was excepted straight up the day we offered.  All but the house we withdrew on are short sales - because in our area and price range that's simply what's available.  Two out of 20 house were  not short sales, one was foreclosure.  (Welcome to one of the fastest growing area's during the housing boom of the late 90's and early 2000's!)

We put the bid on what I've now come to think of as "Our house" May 30th.

Isn't it so cute??

I was told by someone (can't remember who anymore) that in 2010-11 - short sales took about 9 months.  And in 2012 as they became more common it took around 6 months.  I was told the last year; it takes about three to four months.  So I figured come end of August we would be looking towards a closing date.

Yeah, no.  So the short sale mortgage was originally held by Bank of America (dumbasses).  Unbeknown to us, *our house* was in a large group that they then sold to a smaller bank and it went through on August 1st.  So now we have to start from scratch with the new bank.  I asked a friend "Why would they do this when here we sit perfectly happy to pay them money for it?!?"  He explained - Say BoA has 400 houses that are all upside down and/or up for short sale.  Each house has a mortgage worth $250k and are short sale listed around $200K. They have 100 million wrapped up in these houses that people are no longer paying on their mortgages.  Sure they could wait out all the short sales and headaches and get 80 million of it but that will take time and their balance sheet keeps looking crappy.  But say a smaller bank says "Hey, we'll pay you 60 million for those homes and we'll deal with the headache!"  BoA balance sheet starts to look better for them in the short term and the little bank wins because in the end they'll make a profit.

Arial shot of deck and HUGE yard (play set will be gone)
Trees are much more mature as this was taken years ago

OK - at least that I get.  But I want my house NOW!  So if the clock started over Aug 1st.  And people are saying it will be faster* now that it's not with BoA who is notoriously slow that still puts the average 3 month time frame at around Halloween with a closing date after Thanksgiving!  Ugh.  At this rate I just hope we're in there by Christmas.  (Let me tell you I do NOT want to decorate this place only to pack it and decorate the house.  Putting up Christmas once takes time.  Doing it twice in one year? No thanks.

But seriously - since it's already been 3 months already - I'm totally moved in in my mind!  I've been through it three times (Once before offer in May, One in June for inspection, and once in early Aug so my mom could see it).  We have a mental list of what gets fixed or painted asap (all appliances and first floor), what we hope to do in first year (hard wood floors on first level and paint all of second level) and what can wait more than a year (finish half basement, new backsplash and countertops in kitchen etc).  I've been internet window shopping for appliances and furniture, daydreaming of color schemes for paint and curtains, pinteresting on backyard fire pits and maintenance for deck.  This is OUR HOUSE.

My dad after the latest update was like "OMG, I could NEVER buy a house this way!"  Yeah? Well give us another 50k and we could look at houses that are not short sale!  Thankfully our townhouse we've lived in these past six and a half years the landlord loves us and is willing to give us a 60 day out clause (which we've now had in place since May 1st) so there's no rush except the desire to just get in there already!