May 13, 2009
buying a home isn't easy these days
As some of you who read this blog regularly are probably aware, Deanna and I are in the process of (trying) to buy a beautiful log cabin in the coastal redwoods of the San Francisco Peninsula.
We were so very close at the end of last month but things have gotten a bit more complicated over the last couple of weeks.
It turns out that we have impeccable credit and we'd found a lender that seemed happy to give us whatever loan we needed. Unfortunately, when the loan went into its final review, the lender appraised the home at less than what we, the seller, and an independent appraiser had agreed it was worth.
Mortgage lenders are obviously a bit timid lately. After a year of sub-prime borrowers defaulting at unprecedented levels, and with the option ARM recasts about to hit hard later this year, lenders have pulled back on all but the safest of loans. That means that if we wanted to buy a million dollar condo in Mountain View, we could probably do it tomorrow. But, trying to buy a log cabin in the woods 45 minutes away from Mountain View is a whole other story.
The place we found and fell in love with is quite special. It's the kind of place that has a somewhat limited market appeal and wouldn't be easy for a lender to get rid of if its occupants were to default. Deanna and I are very qualified borrowers but lenders just don't want to take any chances with properties that might be difficult to sell if they went into default. Because of that, lenders are undervaluing "difficult" properties to keep their risk minimized.
The good news is that we've become quite good friends with the sellers over the last couple of months -- a wonderful couple that has put their heart and soul into this home for the last 15 years, and after meeting with them today it looks like we've got a way to make this all work out.
While it isn't a done deal until the deal is really done, we're optimistic that we'll be the proud owners and occupants of the most beautiful little redwood log cabin on the Peninsula by the end of this month.
reactions, thoughts, comments, etc.
Posted by: Ken Saunders | May 13, 2009 5:14 PM
I know a lot of people who have been through similar experiences (not with a log cabin, though), even before the economy went south. It usually works out eventually...keep the faith! You'll be living in the forest soon enough.
Posted by: John Slater | May 13, 2009 8:25 PM
Same experience here, in Europe, however approx. 6 years ago. The lesson? Bank-conducted appraisement is always lower than the actual purchase amount in order for the bank to secure against any risk.
Good luck.
Posted by: Funtomas | May 14, 2009 12:08 AM
maybe you should setup a paypal link ppl might give you money to pay for the house
Posted by: gabe | May 14, 2009 6:36 AM
That place looks great. Hard to believe that place has limited market appeal. I hope it all works out.
Posted by: Chris Robinson | May 14, 2009 7:03 AM
This might have been asked before... but what's the Broadband like there? ;-)
I'd love a place like this too, but Broadband is an absolute must for me these days.
Posted by: Steve | May 14, 2009 7:20 AM
well based on the san Fransisco area i expect you would likely get dsl at least in that area
but thats just a guess
Posted by: gabe | May 14, 2009 11:51 AM
5 acres of redwoods, creeks, and an historic house. In the Bay area. Limited market appeal. Yeah, right. Sometimes bankers and real estate agents don't understand anything except cheap commodities.
Posted by: VanillaMozilla | May 14, 2009 12:06 PM
A house, made entirely of wood?
Make sure you don't strike a match in there...
Posted by: Gemma H | May 15, 2009 3:42 PM
Man, what a journey. Wake me up when we get there.
Nah, it's cool that you've shared this from the beginning. Or at least when you decided that this is the one that both of you wanted.
Will this be available on Blue-ray?