Buy Fix Sell Foreclosure-problem
I can't quite find the answer to my current problem. I bought a foreclosure, fixed it up within 2 months, and am selling it. The buyer is getting a conventional loan. Its supposed to close next week. A glitch- because the house will have been sold 2x in 1 year, a second appraisal is being done and they require receipts. Firstly, I know this is a loan seasoning issue, but I didn't think it mattered for a conventional loan. I Put about $4,000 into it and did a lot of work myself. I'm selling it for about $20,000 more than I bought it for (comps support this). Since the bank wants to see the value that was put into the house my "costs" need to add up to about $20,000. Can I estimate what my time cost and use this? Will it bite me in the future. I'm not a contractor.
This is seriously putting a crimp in my real estate ventures.
Any suggestions other than having the buyer getting another more flexible loan (this is the second time this has happened).
Thanks in advance for your help.
Paola
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