Tuesday, August 2, 2011

My Offer Was Accepted

I got an email Monday morning from my agent that the Seller accepted my offer. Egads! I meant, yahoo. I meant, OMG. I meant, hurray. I meant, "What have I done????"

One of the "minor" concessions I had to make was that I needed to deposit $3,290 of earnest money into escrow within 3 days of the Seller's acceptance, not when her lenders approve the short sale. Feh. July was a three-paycheck month - - I's got the money!

But when I checked my bank account, I had barely any money. WTF??? It looks like an inter-institutional transfer from my primary checking to an online savings bank that I set a while ago, but canceled over the weekend, was pushed through nevertheless. I called both banks to cancel the transaction, but no dice. Frick! The money is floating in the cyber-transfer ether for the next 3 days and possibly inaccessible until after the due date. F#$K!!

Fortunately, my sister agreed to wire the earnest money. Truth be told, the only reason why I'm able to purchase this property at all is because my mother is lending me a portion of my dad's life insurance proceed for the 20% down payment. My sister is the trustee of the funds so it made sense that she pay the initial deposit. Mini-crisis resolved.

I have a good feeling that the Seller's lenders will approve the short-sale. A comparable unit in December sold for $333,000. Another comparable unit (but with hardwood floor upgrades) sold for $375,000 in June. Looks like I'm in the ballpark.

Even if the short sale is rejected, I'll be okay. After all, my cost of living will skyrocket and I'll be living on rice-and-beans for the foreseeable future if this goes through. Assuming the short-sale is approved, this is my new housing budget: (Oh, God, I'm feeling sick.)

Mortgage (P&I): $1,275
HOA Fee: $320
Property Tax: $340 (est.)
Payback Mom: $225
Condo Insurance: $60
TOTAL: $2,220/month.

Do you see why I won't really be disappointed if the the short-sale is rejected?


444 said...

Congratulations! I've found that very often, money talks, and the earnest money must have really sweetened the deal for them. Glad you were able to shell-game it and rustle it up. I hope you enjoy your new residence and I'm sure you're not really going to be sawing a bean in half with a knife and fork. I foresee better days ahead for you!

Abigail said...

Congrats! I know it's scary, but you'll be amazed at how happy you are to eat rice & beans in your own place!

It is scary, since I'm going through similar "eek" moments as I realize we're less than two weeks from closing and I still owe the lender a ton of documents, which she reminded me about the time I took off on a plane to San Diego. Yargh.

I guess the cost of living (and housing) is far more expensive than in Phoenix. Most places are. So we're lucky to be getting in on some VERY depressed property prices. And we're getting a fixer-upper. But the point is you'll have your own place and your budget WILL adjust to the extra expense. I can't explain how, maybe it just gets easier. But you won't live on rice and beans forever.

Or, if your cold feet continue, we can all cross our fingers for the seller to be temporarily seized by the notion that she can't sell and cancel the transaction. So then you'd even get some moolah out of the transaction!

Michelle Parker said...

Congrats! All of the bills associated with owning your own home are very scary, but it's nice to own something.