[villagetinker]

IMHO,

Contact ARC and see that ALL modifications to the property AND landscaping have prior ARC approval.
Contact the building department and confirm that the correct permits were pulled and inspections completed for any and all modifications to the house, you might want to work with Frank of both of these.
I would absolutely go with a title insurance company to make sure there are NO liens or other open actions against the property.
If you can talk to the neighbors, they can be a wealth of information. Ask if the homeowner was a DIY type person, there might be a lot more to look for.

I also tend to agree with some of the above comments, we could have easily paid cash for our house, instead we got 3% mortgage and almost 10% average return on investments over the the last 7 years (not including the last 3 months....), but of course this is a personal choice.

Hope this works out for you, Welcome to TV.

[Troy8432]

All cash or not, buy title insurance. It saved my butt last month. 12 years ago I bought a foreclosure in northern VA. We fixed it up and sold it in February to prepare for move to Villages. Two days before closing, the buyers closing company contacted me and told me there was an outstanding judgement against the house. Apparently, a previous creditor was still trying to collect from the previous owners and I was totally unaware - FOR 12 YEARS. In a panic, I left work, drove home and dug through all my original home purchase documents. I couldn’t remember if I bought title insurance way back when. I was concerned that I had done something stupid (like not buying title insurance) to save a buck or two. Thankfully, I found the title insurance docs and sent them out. Problem went away instantly and we closed on time. I will ALWAYS buy title insurance, cuz you never know If there are skeletons in the closet. A farmer’s undocumented land transfer. An heir. Who knows.

[biker1]

Depends on the seller. We bought from the Developer with cash. 10% down and settle in 30 days. We didn't have to prove anything but if we didn't settle they would have kept our 10%.

Originally Posted by kathyspear

We have (in the past) paid cash for real estate purchases. We had to show proof of funds. They didn't just take our word for it that we had the money.

kathy

[biker1]

Paying cash is really part of your investment strategy. The money in my house is also appreciating and is part of my overall asset allocation strategy. My non real estate investments were up over 25% for calendar year 2019 so you could certainly make the case that I should have had the cash in my house invested elsewhere but I don't have a crystal ball.

Originally Posted by villagetinker

IMHO,

Contact ARC and see that ALL modifications to the property AND landscaping have prior ARC approval.
Contact the building department and confirm that the correct permits were pulled and inspections completed for any and all modifications to the house, you might want to work with Frank of both of these.
I would absolutely go with a title insurance company to make sure there are NO liens or other open actions against the property.
If you can talk to the neighbors, they can be a wealth of information. Ask if the homeowner was a DIY type person, there might be a lot more to look for.

I also tend to agree with some of the above comments, we could have easily paid cash for our house, instead we got 3% mortgage and almost 10% average return on investments over the the last 7 years (not including the last 3 months....), but of course this is a personal choice.

Hope this works out for you, Welcome to TV.

[John_W]

Originally Posted by retiredguy123

The only problem with the scenario you presented is that many people don't die while living in their house. They need to move into assisted living or a nursing home before they die. In that case, the bank can force them to sell the house before they may want to sell it, and they will lose a lot of money in reverse mortgage fees and administrative costs. So, if you can afford it, you are better off getting a regular 30 year mortgage with a 20 percent down payment and using the extra cash ($140K minus $60K) to make the 30 year mortgage payments. That way, you have a lot more flexibility about when and how to sell the house.

You're correct, once you leave the home, it has to sold whether you're alive or not. Remember before I said, when you die and they sell the home, your heirs will receive any leftover amount.

We'll use numbers that are close to real. Let's say the home's appraised value was $300K and you had drawn $100K of the $145K that was available during the ten years you continued to live there.

The loan would be the $100K, it's the amount you've taken, the upfront fees which mine were $9,000 and my loan goes up $200 a month. Let's say they live in the home ten years and then sell the home. 120 months x $200 equals $24,000 plus the $100K you took and the $9,000 in fees. That's a total of $133,000 and they sell the home for $300,000, they might get even more since ten years have gone by, but we'll stay at the original appraised amount. So you would get $167,000.

That's why three of us on my block have reverse mortgages, once you find how it operates, it's makes perfect sense. Of course if you have children and want to leave them something, then don't do it.

[John_W]

Originally Posted by kathyspear

We have (in the past) paid cash for real estate purchases. We had to show proof of funds. They didn't just take our word for it that we had the money.

kathy

Reminds me of when I sold my home in Baltimore in 2011 to the first person to look at the home, it was just 12 hours after I listed the home. When the agent called with the offer an hour after they left, I was a bit hesitant to take an offer so quickly that was $10,000 below asking. They had built a Wegman's across the street and it was opening in two months. The agent said, this is the manager of the new Wegman's, she's in town for two days with a letter from the Wegman's corporation guaranteeing the money. The company will buy the manager's homes when they transfer them, so they aren't consumed with buying and selling. I said yes, and called my Villages salesman Tony Trussler that afternoon and bought a courtyard villa sight-unseen that was discounted $12,000.

[rustyp]

Originally Posted by kathyspear

We have (in the past) paid cash for real estate purchases. We had to show proof of funds. They didn't just take our word for it that we had the money.

kathy

Once again I did a bad job of explaining my point of view. It was tossing around the phrase we have a cash buyer to me is insignificant as a seller. No matter what transaction takes place I get money (check) at closing. I don't care whose money, client or bank. If a real estate agent brings an offer to me from a client that is seeking a mortgage it's a pretty good bet the agent has prequalified the client or it would be a waste of both my and the agents time.

Showing proof of funds - did you have to show proof of funds before you looked at the house or as part of the offer ?

The world has changed relative to the stigma of I am a cash buyer. Watch buying a car video and one of the first rules is never tell a dealer you are a cash buyer - you just cut into the kickback they get from the finance company.

[retiredguy123]

There are advantages to the seller when the buyer pays cash. First, there is no financing contingency in the sales contract, so the contract cannot be voided by a low appraisal or an increase in interest rates. About 5 years ago, former neighbors of mine signed contracts on three different houses and all of them were cancelled because the bank appraisals were too low. Another advantage to cash is that the closing can be scheduled within two weeks or so after the sales contract is signed.

[J1ceasar]

Title insurance is peace of mind. Also when you do pay cash it means someone can Sue you the next day

[Prpcmom]

I’ve bought several houses in The Villages all cash. Use a title company, an owners policy is worth the cost, I know people who have benefited because of things that didn’t show up right away and the title company had to pay later to clear up the issue. Tri-County Land Title & Escrow Company does a lot of these closings, cost is very reasonable, they can provide you with a legal sales contract and make the closing fast (relatively) and painless. A termite inspection is always a good idea In Florida and the extermination companies will do it for free in the hopes you will sign up for their services.

[Mebnj]

I would recommend professional help. cash or not at all closings people get paid. It is in a sellers best interest and buyers best interest to have professional knowledgeable help. I could tell you many stories of unclean title because someone wanted to save a few dollars and thought they knew everything.

[Villages Kahuna]

Usually it’s the Seller who has to provide and pay for a title insurance policy. The Seller has to provide proof of clear title to the Buyer.

[FredJacobs]

Originally Posted by Jayhawk

Where did you get this fact, as it is the opposite of everything I have heard or read?

All media companies (broadcast, print, billboards, etc.), provide marketing and statistical information to potential advertisers so that the advertiser can learn if their target audience is reachable. In The Villages, more than half the homes are paid in full at closing.

The primary reason is that, for the most part, buyers plan on being permanent residents rather than snowbirds or renting out their home. They have lived in their Northern homes for 30 or 40 years, have seen them increase in value and equity, have paid off the mortgage and do not have to pay tax on the profit if it is less than half a million dollars (married couple). They can buy for cash and have plenty left over for moving expenses, refurnishing and living expenses. By the way, although most residents are on fixed income, The Villages has a high average income per household.

[Pedrocarrasco01@yahoo.com]

Originally Posted by Stuart Zaikov

One major advantage is you can close much faster with an all cash deal.

When I bought seller was extremely motivated to sell, I wanted to buy so I made him an all cash offer closing in 20 days that was 17% under asking, they accepted, but the title company could not do it so we closed 26 days after it, by all means get title search and title insurance, not that expensive and all worth it. Good luck and welcome to paradise!!!!!!!!

Originally Posted by trekker954

I'm not sure TV is any different from other Florida cities, but what has you experience been if buying with cash. I own a home outright and keeping it in South Florida but plan a move to TV. I've been up there a number of times, and coming up Saturday for a couple of weeks to look at homes. I know Villages Properties, FSBO and MLS are all seperate.

If I do find my dream home, appraisal wouldn't be requires especially if I get a great deal. I assume I can research myself if there are any liens on the house, or is there a way to request the seller to produce a certificate? (Not sure about that). I think I can go to whatever county assessor and request a lien search. Or hire a title company to do a search.

I shouldn't need Title insurance Policy if I come up with a clear title correct?

So I should only have to pay for a Recording Fees.

Anything else I might need that is specific to TV purchase?

Might go without saying, but an inspection is key. Be sure a thorough title search is done. And do not skip title insurance too hastily. A title can be clear at closing and then someone can come later with a valid claim, unpaid vendors for example. Less important but still an issue to inderstand, read the deed restrictons carefully. They vary by district and one set may not appeal to you as much as another.