House Buying and Travel

[sillygoosegirl]

We are in the process of buying a short sale. Really, in the process of waiting on the bank. I am getting laid off from my job September 30th. It was always a contract job and we can afford the house and everything without my income. We plan to take a 6 week trip to South Amerca in October/November while I am between jobs. As I understand, we are already down to the wire on getting Incan trail tickets for that time frame. Our RE agent says to go ahead and buy tickets, that we will probably close before then, and we can set up a limited power of attorney for my parents to close on the house on our behalf on the off hand chance if goes through while we are out of the country.

I'm trying to decide if I feel comfortable with that of not. I trust my parents. We have a very good relationship with them. They have time. They live less than a mile from the house. They have purchased and remodeled lots of houses, so they probably know better than we do what to do. And of course, most likely the bank won't just happen to get back to us while we are gone anyway. We would of course be reviewing the inspection report ourselves and so forth, via email. But at the same time, if there is something wrong at the final walk through, it's on them to make the decision and is on us to live with it.

We plan to TTC late this year or early next year, so most likely if we don't do this trip now, we won't do it for a very long time.

If it were to come down to the trip or this particular house, I'm pretty sure we'd choose the house. What do you think? Would you consider having your parents (or someone else you completely trust) close on a house on your behalf?

[emoflamingo]

Yes, I would let my ILs close on my house. (My dad does not live near me and he works nights, so he isn't really a great option.) I wouldn't pass up a trip like that either.

[mrs.jacinthe]

Yes, I would. Especially taking into consideration that it seems like there are a lot of what-ifs in this particular set of scenarios. What I would do is leave my parents the limited POA, as well as a brief run-down of things that would be deal killers for you: infestation, extensive mold, structural issues, total repairs costing over $15k, etc. Then let them handle it. That is, if they had to.

If this is your last chance at this trip for a long time, then now is the time to go. Do it.

[tarheels]

Do you have reason to believe the report will turn up serious issues that will break the deal? If so, can you get access to the house before you leave and pay out the $400 inspection now for peace of mind, and if the bank rejects you, you're out your $400, oh well? Discuss in advance what your tolerance is - repairs of $5k, $10k, etc.

As for the signing, letting someone sign for the house is NO big deal. Like, at all. We've had POAs sign for us for 3 house purchases when we couldn't make it. We've even been halfway around the world once and just looked at the inspection pics online. The actual signing is a pain in the ass, so you've saved yourself 3 hours of sitting somewhere signing your name 40,000 times.

[ktzmoh]

I'd go. But I have a string preference for travel. Plus there may be sufficient cell service so that you can comminicate with your parents in the event something crazy happens with the house. I'd go- you only live once!

[sillygoosegirl]

I hadn't thought of getting the inspection done ahead of time. That seems like a good idea. The house needs a lot of cosmetic work, but seems to have good bones. I just feel like you hear about lots of purchases falling through on inspection. Honestly I can't imagine we'd decide not to buy because of anything on the inspection, but we might ask them to lower the price if there is a lot needed. I can imagine not being able to reach an agreement if the bank won't budge on the price and a lot of unexpected work is needed.

Also, since it is a short sale, there is some risk of the owners sabotaging it. We've met them and it seems unlikely, but you just never know. It's been their home for 14 years, so I imagine losing it is pretty emotional for them.

We've never owned before, so perhaps I am more worried about the horror stories you hear from time to time than I should be.

[thatgirl]

Have your attorney also in the loop and ready to roll.

Enjoy your trip!