From dream to reality

Welcome...we invite you to follow our journey to build our dream farm/homestead, God's Blessing Farm. From where we were, to the birth of the dream,to the search for land, to the land purchase,building the infrastructure and each step along the way.We invite you to watch comment and advise. If you are new to the blog you might want to start at the begining post. Be blessed and enjoy the ride with us

Tuesday, November 30, 2010

It shouldnt be this hard to spend your money

You have to give it to us we were determined . By my count we drove by or visited over thirty various properties. The good the bad and the ugly. We actually put two low ball offers in on two seperate properties. Both were rejected out of hand. Things happened in the process which both protected and guided us. Sometimes we would pour over properties and dismiss some of them out of hand. Then we would revisit those properties a month or even up to four months later because we changed our criteria or deeper research revealed that the property really had more potential than we thought. But in each case as we scheduled a visit to each of these newly "hot"properties they would suddenly come under contract.This happened at least three different times and sometimes happened to listings which were over a year old. At the time it was frustrating but now we know in each case it was a blessing. None of the properties we might have purchased given the chance was as nice (or as economical) as the one we bought.
And the story of that one reinforces my beleif that we were guided to it as an answer to prayer..

One little iota of Niota ...
We were getting close to believing that this wasnt His purpose for us just now. But then we decided that a decent doublewide was better than a 100 year old structure that would have to be gutted. It was now time to revisit some properties that we had dismissed. At the same time we were doing that we added another sub area to our search criteria .We went to visit a foreclosed property in Niota TN that was listed for only 94K. It was a very cute house with a great garage shop and a barn but it was only 4 acres and no water. But it was also only about 35-38 minutes from work. Niota was close enough to be added to our search radius. There had been a property on the MLS since May (it was now late October) that really began to catch our eye. The listing described a 25 acre tract with a double wide and a singlewide on it with a brook fed by two springs. We scheduled a visit.
Once we got there it was another classic case of real estate "Internet Dating". The pristine doublewide pictured in the listing was now unoccupied.And it had been stripped of all appliances,interior doors ,most of the floor coverings and even some of the trim molding. Windows were broken.Clothes and garbage were strewn throughout its interior. The singlewide was occupied by the owners brother ("CM") and he declared that it was his and not included in the listing. He also said that his brother was now living in Alabama and "if he didnt get his asking price he was gonna let it go back to the bank".
Agent Judy and "TLA" went through the doublewide while I handled a phone call from work. They came out with terrified looks on their faces. While they went off to look at the land I entered the doublewide.What a mess.But the floors were good,the roof was good, both decks were solid.It really only needed some trim carpentry, paint and a trip to Best Buy.
Then I went to look at the property.The water ran through a natural gorge.It was just a very small trickle but both characteristics would make pond construction very feasible. "TLA" and I both loved everything about the land.
The asking price was $119K. Judy said it had started at $139 k I pulled the CRS data on the property.I ran amortization tables on a mortgage with his initial balance (assuming he was current) so I could calculate an approximate current balance, added in the real estate commission and we made a cash offer of $91,500 with an earnest money deposit of $10K (firing for effect). Looking at the reconditioning required on the doublewide we felt like we could go to $105. Lets negotiate!
But it takes two to negotiate.The owner did not even respond to the offer or the listing agents calls.Nothing nada, can a brotha get a holla back?. Now the listing agent came clean.This owner had turned down three other offers.Two were cash and two were larger than our initial offer.But come on I cant even get a response?
Then the listing agent told "agent Judy" that he was fed up with this client.He was pulling the MLS listing and dropping the client. The owner is probably going to "let it go back to the bank.

There was that statement again.

So back to CRS I went to find the secured creditor.That was easy enough. It was The Bank of Niota..But that bank didnt show up in Niota or anywhere else. Back to Google to find out the bank had been acquired and the new bank had an office in nearby Athens. I called and asked for the head of lending.Oh yes the VP was familiar with that property and told me the file had been handed over to the collections manager in the Knoxville TN office. One more call and I discovered that the property was well into the Tennessee non judicial forclosure process and was scheduled for auction in 19 days on November 18th.

19 days to research the TN foreclosure process.
19 days to identify the pitfalls.
19 days to develop a strategy to make this "prince property" our future homestead.

We were not that lucky. We were not that smart. But we were that blessed.

Bald Man

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