Foreclosure in 66210>Question Details

Rachael Zeve…, Home Buyer in 66210

I put in an offer on a REO property. It is being sold as is. I expect things to come up in the inspection that need to be fixed. Since I can't

Asked by Rachael Zevecke, 66210 Tue Dec 22, 2009

ask the seller to fix them, what are my options? The house has to pass inspection in order to close right?

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4
Why wouldn't you address the condition issues with the offer? Hopefully you made the offer subject to a inspection to address your concerns. The house does not have to pass any inspection except the appriasal and any city or state required inspection.

Hopefully you have a buyers agent that understand the process to explain your options.

There are banks that will address items, but it depends on what the issues are. The goal is to understand the condition and understand what you are buying. If you know things are wrong when making an offer, those things should be taken into consideration. The banks want a clean deal rather than someone trying to negotiate after the fact. Most likely after a deal is struck its pretty much in stone, not subject to changes. The bank will most likley kill the deal and let someone else purchase the property.



Keith Manson
First Weber Group

Certified Distressed Property Expert
Metro Milwaukee

http://milwaukeebailout.com
0 votes Thank Flag Link Sun Feb 14, 2010
If you are not working with an agent representing you, you need to contact one right away. I have represented many clients on REO properties that stated as-is, but I have been able to negotiate repairs, money off in lieu of repairs, etc. I have also closed some "rehab" loans including the 203(k) loan that someone previously mentioned. There are a lot of possible scenarios in your question(s), so you need to talk with your agent or contact one to go through your situation with you and represent you and your best interest. REO's typically will pay for you to have an agent representing you (Buyer's Agent), so there is no need to try to manage all of the intricacies and possible pitfalls of purchasing an REO by yourself. I am a Realtor in your area, so if you aren't working with an agent, I would be happy to try to help you in this situation. It doesn't sound like it is too late since you said you put in an offer and didn't mention anything about being under contract yet.

Good Luck!
Kristal Myers Jacobs
Keller Williams Key Partners
Prairie Village, KS
http://www.kristaljacobs.com
913-825-7558
0 votes Thank Flag Link Fri Feb 12, 2010
If your buying a reo in as is condition you need to address the condition prior to making the offer. IF you have made the offer, look at what you signed, differnt banks outline the as is differently. Some indicated "as is" is "as is" which means it does not matter what any inspection indicates. The way a condition issue would be addressed is if a lender reuires it be addressed and the reo bank agrees to fix the issue.


Others let you do the inspection and either move forward of not after inspection.

Some lenders I have seen address items after the inspection.

However, it is best to assume that you have to address these items up front with the offer.

IF you have not addressed the condition issues in your offer you should check with your real estate agent , hopefully a buyers agent, to see what your options are given what you have signed!

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Wed Dec 23, 2009
Right and wrong. IF the Seller has made the decision to allow you to purchase the property FHA, it does have to meet certain standards and they MAY be required to have the items repaired/replaced. However, that's where renovation loans come into play. FHA has a 203(K) loan that allows you to borrow the money needed to repair the property after you purchase it and Fannie Mae has their Homepath Renovation loan. Talk to you loan officer and Realtor about where you stand in the situation and what would be your best solution to the problem(s). Otherwise, you might be purchasing the wrong property and you need to keep looking. Do Not think that having the repairs done is a given, it's often not the case especially if it's an investment property.

Good luck !
0 votes Thank Flag Link Tue Dec 22, 2009
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