Board Notes (March 1st, 2008)

March 1st, 2008

No meeting was called, this is simply an update on actions that have occurred during the last two months.

Actions Taken

• Rob contacted Mower Medic about removing and storing the Christmas decorations; they're supposed to get the job done sometime between the 1st and 15th of the month, and will call before they come out so they can arrange to take everything to the storage unit.
• Rob took the Christmas decorations to the storage unit.
• Rob completed the filing update with the Secretary of State.
• Stephanie got the payoff amount from the mortgage company (roughly $148k), and also received a copy of the RODDY foreclosure report listing the amount owed on the loan (roughly $135k).
• Rob spent some time working up the numbers on 1715 Mapleleaf, and sent them to Yesika and Howard:

  FYI, here's a rough breakdown of the figures involved in the offer for 1715 Mapleleaf. I'm going to write something more formal up, and provide it to the bank.

  Please give me your input ASAP, this needs to be sent to the bank today.

  1715 Mapleleaf Falls:
  

  • 2276 sqft.
  • Appraised at $170,994 ($75.12/sqft)
  • roughly $168 purchase price
  • $140k for 1st mortgage Carrington Mortgage
  • $135,457 owed per Roddy report
  • Bank shows $137,080.45 owed, $148,943.22 payoff.
  • ~$10k for 2nd mortgage Capital One
  • More realistic estimate of $70/sqft sale price is $159,320
  • 15% discount puts price at $135,422.

  Roughly $30k in expenses expected:
  

  • Expect $15k in repairs (locks, carpet, appliances, etc.)
  • Expect $5k in realtor fees
  • Expect $5k in taxes/insurance
  • Homeowner owes $3k (2,131.75 + another $800 expected legal fees for eviction, etc.)
  • $2k budget overrun

  We can't pay more than $129,320 if we stick to the budget above. 20% discount puts price at $127,456 Offers:
  

  • $122k offer to Carrington
  • $5k offer to Capital One (if we need to pay it off)

  Yesika wrote back and said I say we should take the risk and go for it...., so Rob wrote a proposal and emailed it to our contact at Carrington Mortgage.
• Allison called Stephanie to tell her that they finally received the decision from the judge in the Gulling case, the HOA won, and Gulling is also ordered to pay the attorney fees.
• Rob received a call back from Kirk Gerling (317) 712-5414 at Carrington Mortgage about our offer. He agreed to the price we suggested, and said that we could either find outside financing for the price we agreed on, or they could lower the monthly amount to the $2k we requested but leave the loan amount the same. He also said that since we're the owner of record now on the property, we are actually refinancing the property rather than purchasing it outright. Obviously it makes better sense for us to go with the lower rate ($26k less!), so Rob started contacting companies about getting the loan. He also asked Kirk to postpone their foreclosure by a month while we seek financing, which Kirk agreed to do.
• Stephanie started contacting insurance companies about obtaining coverage on Mapleleaf. She also contacted Allison and asked them to start the eviction process on Mapleleaf.
• Rob started contacting mortgage companies to obtain financing. He spoke with Luann Kai from TexasLending.com (214) 276-0710, she will look into what information is required and call him back. Rob also contacted Chris at Chase, First Option Mortgage, and Community Association Banc.
• The only company that Stephanie found that would provide insurance on the foreclosed property is Standard Insurance. The policy is $900 for 3-months as a vacant dwelling, and is non-refundable. Rob asked her to get a copy of the policy so we can review it before signing.
• All but one of the banks and mortgage companies Rob has contacted want a personal guarantee on the loans. The only bank that will provide the loan for the corporation without a personal guarantee is CAB in Arizona. Rob spoke with Daniela Dobrescu at (860) 652-2018, who sent along some information on the loan and required paperwork. Rob will work on gathering the necessary documentation for the application.