Home Buying in Carson>Question Details

Leo_m, Home Buyer in Long Beach, CA

Can I try and buy or negotiate a foreclosed (REO) home even if the inspection didn't pass? Willing to do the work....

Asked by Leo_m, Long Beach, CA Tue May 18, 2010

Hello, I am a California home buyer and I recently spotted a foreclosed (REO) home in Carson, CA that is listed for 205,000. When I called the contact agent, he told me that the home can't be sold because it didn't pass the inspection due to remodeling/ renovations done without permits. The agent also told me that the bank(seller) would need to get it fixed in order for the inspection to pass and consequently the price would rise to around 400,000-500,000. The city of Carson has this "Residential Property Report Ordinance". Neways, I went to visit the home and to my opinion, the house only needs a few fixtures because it is completely remodeled. I personally think it's a good deal. I'm interested in buying this home but at the listed price (205k). What can I do to buy this house at 205k? Is it possible that if I go to the city's Building and Safety Division, I can get approved to buy the house if I agree to correct everything in a timely manner, after I buy it?

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Eric J Soderlund’s answer
I just googled " carlson residential property report ordinance". It has more to do with permits and code violations. It states that in "most" cases the work must be completed before the transfer. However, it also says that if you can guarantee that the work will be completed after, it may be purchased as is. Maybe you could the city to estimate the cost of the permits and fixing the code violations and put that money into escrow to be paid to the contractor doing the work. Maybe even after being approved by the city! I hope this is of value. Go to the city and make it happen.
0 votes Thank Flag Link Tue May 18, 2010
Hi Leo,

Tend to agree with the previous answer. My question is are you doing the work yourself or hiring a contractor.
If you are hiring a contractor, it would be a good idea to get his opinion as to what you are getting into before you take the plunge. Depending on the part of Carson, I highly doublt it would be 400,000-500,000 by the time you get done. Would depend on the neighborhood and the house when its done. Find out about the permits from the city about the house, Ask about the copy of the old Inspection Report and with the agent's permission ask the city about the permits.

Good luck to you,

Ali Mirza
TRG Group
Torrance, California
Web Reference: http://mirzarealty.com
0 votes Thank Flag Link Tue May 18, 2010
If paying in cash, you may be able to purchse--however, inform yourself as to exactly what permits are needed--do check with the local building's department first as to exactly what will need to occur as it relates to this specific property in order to obtain permits and c/o's--then make your informed determination.
0 votes Thank Flag Link Tue May 18, 2010
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