Well, hopefully as we enter year 3 of the real estate malaise no one is signing up for 1-3 year ARMS or some of the interest-only products that devastated many home-buyers. But I’m still seeing plenty of folks buying homes who shouldn’t be.
Here’s a sad example that I’ve been dealing with lately…
Clients purchase a modest home earlier this year…just barely. Meaning, they barely have adequate funds to bring to closing. Well, several months post-closing I get a call about some flooding that they’re experiencing in the home’s basement (they did do an inspection). Sadly upon review it seems like the property Sellers were fraudulent and that a claim under the Residential Real Property Disclosure Act seems likely. Yet enforcement of legal rights usually requires a little upfront investment….RETAINER!
Perhaps more importantly, if you don’t have $5,000-$10,000 in an emergency fund to deal with something like flooding/plumbing, etc. you likely can’t afford to own that home.
February 6th, 2010 at 3:46 pm
[...] buy a property that you can’t afford…sometimes that’s the critical issue. If you’re squeezing for $$ too much just to close you may be asking for a disaster like here. Remember, if Buyer’s lender ostensibly won’t cooperate on this issue at closing [...]
i used to do DIY plumbing at home at my work seems to be on par with regular plumbers.,,-
plumbing at home is usually easy, all you need is a little bit of internet research. *-.