Foreclosure in 33607>Question Details

Cpolans2, Home Buyer in 33607

Negotiating Lender Required Repairs - Foreclosure

Asked by Cpolans2, 33607 Wed Sep 7, 2011

Im in the process of buying a foreclosure and the lender has required a roof replacement. How much leverage do I have negotiating? The selling realtor is trying to tell me that they may just cancel the contract and try to sell to an all cash buyer. Should I push them and try to get them to pay for the entire repair or should I just go in with good faith and try to split it with them?

Help the community by answering this question:


You can try and ask for the cost of the roof replacement to be escrowed and paid 100% by the lender. Ask you Realtor to put the request "in writing" on an addendum and it's possible the asset manager may approve it.

Oh and just so you know, if the public records show that the name of the bank that owns it is a "trustee" then the bank may not actually own the mortgage, but merely acting as trustee for the investment pool that actually now owns the property.

I've heard that Fannie Mae may do a roof replacement if the buyer's lender puts that requirement "in writing". Not always but have heard that it does happen.

So, ask and if they refuse then offer to split the cost...

Good luck!

All the best,

Alma Rose Kee, PA
Future Home Realty, Inc.
Westchase Office
0 votes Thank Flag Link Thu Sep 8, 2011
Hi Cpolans2,

Foreclosures are sold 'As Is'. The lender (owner) will not pay for the repairs. If you can't pay for them or find some way of financing them, the deal will be dead - especially since the listing agent has already stated the lender's (owner's) stand on the situation. If you don't want to do the repairs (or can't), it's time to find another property.

Good luck,

Shanna Rogers
SR Realty
0 votes Thank Flag Link Wed Sep 7, 2011
The sad thing with the situation is that repair loans are fairly easy to get in most cases, especially if we're only talking about the roof. And often cash buyers are looking for foreclosed homes in these situations.

One would think that using the same bank would matter, but unless it's a small local bank it usually doesn't. I have had luck with escrow accounts, but only twice and both were with the same small local bank.

Is a repair loan maybe an option for you? Ask your lender what options you might have.
0 votes Thank Flag Link Wed Sep 7, 2011
It seems you are not listening:
You do not have any LEVERAGE with them,

You are going to lose the BATTLE and the WAR!
0 votes Thank Flag Link Wed Sep 7, 2011
Let me add something to this, the lender is the same bank that owns the property. Also i'm not asking the bank to make the repair, just fund an escrow account at closing. Also consider the only way this bank can sell the property is to find a cash buyer or a repair loan.
0 votes Thank Flag Link Wed Sep 7, 2011
You can ask for anything, but what you may get is up to the seller which I assume is the bank now that it is foreclosed. Foreclosures are usually sold "as is" which means the roof is your problem. If your lender wants a new roof and the seller won't pay then another alternative is a FHA203k mortgage which can include the cost of the new roof and other repairs/updating as part of the mortgage.
0 votes Thank Flag Link Wed Sep 7, 2011
Understand that you do not have much leverage:
I believe the Selling (LISTING) Realtor.
Foreclosures are sold AS/IS.
And I would also bet that the SELLING PRICE reflects the needed repairs:

It looks like you have two choices at this juncture:
Get a loan, like the Fannie Mae HOMEPATH, or the FHA 203K, that will allow you to do the repairs without the cash out of your pocket,
Walk away from the deal.

Please don't get mad at the Messenger; if you can think of a third option, go for it.

Good luck and may God bless
0 votes Thank Flag Link Wed Sep 7, 2011
I'm going out on a limb and saying you have 0% chance of getting them to make a repair. It doesn't matter what faith you have or go with, it's not Bank Faith. It might seem harsh, but there is little reason for them to make a repair your lender is requiring. Another buyer's lender might not require it, and a cash buyer wouldn't either. It's a tough pill to swallow but it is reality.
0 votes Thank Flag Link Wed Sep 7, 2011
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