Buying or Selling a Home/house

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QUESTION: I bought a house $200,000 house for 30 year payment plan.  Can I borrow an extra $100,000 to fixed the house from the bank?

ANSWER: Ask around, Henry. If they think the house would be worth more than $300,000 after you use the $100,000 to fix up the place, then they would lend it to you. But at a high interest rate, because you credit is not good. It would be a SECOND MORTGAGE which always costs more interest than the original mortgage.

I suggest you borrow a book on money lending from your local library and learn how and why they lend money at what interest rate. I do wish you well.

RCD

---------- FOLLOW-UP ----------

QUESTION: The problem that I have is this Dick. When we buy something, we do not like we get a full refund.

I spend $400,000 on the house, but the bank only take it back for $200,000. I did not get a full refund and I lost 7 year payment plan as well.

ANSWER: You are obviously a novice to this country, Henry. You just do not understand what buying real estate is all about. There is a big difference between buying a loaf of bread, not liking it and asking for your money back, and getting it, and buying a house and expecting your money back if for some reason you are not able to make your payments as you agreed.

You are talking about something that costs two or three dollars vs. something that costs $200,000. It so happens that you bought that house right at the start of the housing depression (2007) when housing prices just started to drop. You are not alone. Many millions of people also lost their houses because of the housing depression. And, like you, the value of their houses went down and they, too, could not afford to make their payments. And they lost their houses to their respective banks.

If you buy something of small value, you can get your money back if you are not satisfied with that product. The only way you can hope to get your money back when you buy a house is to sell it to somebody else and hope to sell it at least for what you paid for it. That's the way real estate works.

If you expect your money back after buying a house, WHO ARE YOU EXPECTING YOUR REFUND FROM? You bought the house from some other human being. And the bank was nice enough to lend you the money to help you buy it from that human being. But that is what banks are in business for: to lend you money.

To make sure you pay the loan back to them, you must sign and execute the proper documents that are recorded in the county records. This is designed to protect the lender, the bank.

For some reason, the bank doesn't care, you could not continue to make your payments. So, in order for the bank to be paid back what you borrowed from them, they filed foreclosure papers and repossessed the house so they can sell it to someone else, who, hopefully, would indeed make all the payments if they borrow the money to buy the house.

I'm sure you have a car. It's the same thing with that. The price of a car is certainly lots larger than a loaf of bread. And if you borrow money from a bank (or the car dealer) to buy the car, you are going to make payments and if you don't make all the payments as agreed, you are going to lose the car to foreclosure just like you did the house.

It boils down to this, Henry: The larger the price of the merchandise, the more likely you are going to borrow money from a lender some place. And that lender wants to make sure you pay him back. So, he has you sign certain documents that say you promise to pay the loan back.

I have no further information for you. I've told you the facts of life in the purchase of real estate. In your country, no matter if it is Mexico or Italy or Iran, you could not hope to buy a house the way you are able to here in the U.S. It's just that you MUST pay any loans back.

You lost the house, Henry. Face it. Go on about your life. Be well.

Dick Dennis

---------- FOLLOW-UP ----------

QUESTION: It is hard to move on. I lost the house.  I should not be in debt in anyway.  But I owe money to the bank and stuff. That does not sound right.  I am hoping to get a lot of money back because the interest of the mortgage is too much.  Nobody would agree to pay $600,000 in 30 year for a $200,000.  That is just crazy.  I want a lot of refund back. I think I can get that back. Anyway you can help me do that?

I mean if you buy like a $300,000 house and you pay $700,000 in 30 year to the bank. In addition, if you could not pay your mortgage, you lost the lost house, and you owe the debt you owe plus the payments you make those year not to mention taxes and down payment.  How do you feel about that? It sound just not right.  I would not agree to anything like that.

Answer
Obviously, Henry, when you bought the house, the real estate agent you used did not explain everything to you. And those "friends" who lent you the $100,000, do you suppose they will not be expecting to be paid back?

You have gone way over my "free" counseling time. If you want me to help you further, and want further answers, you will need to send me a money order for $500. And that will give you another one hour of my valuable time. You can go to PAYPAL and tell them you want to send me $500. They will help you from there. When I receive your payment, I will help you another hour's worth. In the meantime, I will not respond to any further communication from you without payment. I do wish you well.

Dick Dennis
dixiedee13@gmail.com

Buying or Selling a Home

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Dick Dennis

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With more than 41 years as a real estate broker, I can solve most any problem presented. If I can`t, I do my research. Problems with mortgages, trust deeds, foreclosures, odd ways of conveying titles. Most any good Realtor can answer questions satisfactorily, but I answer questions that most cannot. Also, ask about my hard-copy newsletter, The Landed Gentry. It can also be sent to you via PDF.

Experience

Solving real estate problems for 37 years.

Organizations
National Association of Realtors

Publications
Publishes The Landed Gentry, guest writer in Who's Who in Creative Real Estate, First Tuesday, Financial Freedom and many newspapers

Education/Credentials
e-Pro Realtor, Certified Distressed Property Expert, Who's Who in Creative Real Estate

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