Home Buying in Southborough>Question Details

Lynne, Home Buyer in Southborough

I'd like to know if the bank is willing to tear down the garage, repair the roof, convert to single family, paint, do Title V and reduce the

Asked by Lynne, Southborough Tue Feb 28, 2012

price? Concerns about the house as follows: I was told the wood from the garage could be sold to cover the cost of tearing it down. A new garage would be necessary. I saw the roof, it collects ice in places and there is damage. I think the house is more suitable as a single family home and feel it should be converted back...I would rather the bank do the Title V. I would want something done with the basement, such as poured concrete walls and flooring. i'd like to know if the bank would make these changes with buyer consultation and reduce the price of the home....if so, I would be interested in this home. Thank you.

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12
You will find that 99.9% of the Bank-Owned propeties are sold AS-IS,
The bank has lost a bunch of money and they are not willing to put any more into it.

When they sell an REO, they normally price it to include a factor for the Condition and the work that needs to be done: If they are not pricing it right, you won't buy it.

Good luck and may God bless
2 votes Thank Flag Link Tue Feb 28, 2012
Bank owned homes are always AS-IS. You really are asking for too much here, if they did all that the price would be higher.
1 vote Thank Flag Link Tue Feb 28, 2012
Sounds like you should look for another home without all these issues. Getting a bank to do work on a home is very difficult.
1 vote Thank Flag Link Tue Feb 28, 2012
My brokerage lists foreclosures and this would not be something that any of our financial instituions would entertain. They price property to sell within 30 days in as-is condition. They are not in the business of owning property and property management and they just want to sell quickly and minimize further losses.

You need to understand that by the time a property has been foreclosed on, the previous owner probably hadn't paid their mortgage in over a year (it's an average of over 500 days from the first missed payment to foreclosure), trashed the property and left the financial institution with back taxes, title issues, water bills, electric bills and the large cost of actually filing and recording the foreclosure. On top of that, they are selling the property for less than what was actually owed so the losses add up quickly. It would be an unusual for a bank to take on the repairs that you ask but on the flip side, it certainly doesn't hurt to ask. The worst they can say is no.
0 votes Thank Flag Link Thu Sep 20, 2012
Ask them for anything but expect nothing. There is a lot of bureaucratic red tape with banks and getting them to simply do the traditional steps on time is a pain.This is why you will always see the disclosure sold "As Is" on foreclosures and short sales. This means they are selling you the property in the exact condition you found it, no warranties and no changes.

Good luck!
Web Reference: http://territory.com
0 votes Thank Flag Link Thu Mar 1, 2012
Theres a lot of answers below. The answer is you can ask for anything. Depends on how desperate the bank is to move the property and how many offers they have and the contingencies that are with those offers. Is the garage a present danger? Converting a property to another use would be up to the purchaser. Title V in many bank owned properties is the buyers responsibiliyt. The basement would be the buyers choice.

Do banks like to sell "as is", yes.

You will have to make concessions - Location ? Condition ? Price ?

Based on the requests you have, I would suggest you buy a newly constructed home at a price and an area you feel comfortable with.
0 votes Thank Flag Link Tue Feb 28, 2012
When you look at it from the banks point of view, why would they? Any offer from you would need to be guaranteed to them in the form of a non-refundable deposit for them to even consider. If they did all the work you've mentioned wouldn't they then just market the property at a higher price? Chances are the property is marketed at the current price in following with the banks imput to solicit buyers. If all the work you mentioned were to be done in any market it would command a much higher price short of a knock-down. You should consult with a local & experienced buyers agent to at the minimum run the comparable properties to gauge the true market value of each property that interests you. Banks/Lenders/REO/Investment properties have sellers that are knowledgeable of the market & need to back it up by proper appraisals to justify it and make sure it survives the scruitiny of oversight. This is why the property is priced where it is, unless you're a total cash buyer willing to close in 30 days without contingency and have an established relationship with the lender why would they bother improving the property as you've asked at their expense?

Good luck in your search,
0 votes Thank Flag Link Tue Feb 28, 2012
Assuming you're not paying cash, you could always look into a FHA 203k rehab / renovation loan which would be able to incorporate the cost of repairs along with the mortgage. Bank houses are already significantly reduced in price, and it would be highly unlikely in most cases that they would accommodate that type of request. What house are you referring to in particular, I live in and work in Southborough and it doesn't sound familiar offhand.
0 votes Thank Flag Link Tue Feb 28, 2012
Only the bank can answer this question, no? You can certainly ask. Look at your contract. The contract probably states 19 times that it is being sold as is, and you probably signed the bank's addendums which state an additional 19 times that the property is being conveyed as is. The answer will most likely be no. The only repairs I'm seeing banks make recently are health and safety. Can't hurt to ask, but don't expect too much.
0 votes Thank Flag Link Tue Feb 28, 2012
Hi Lynne,

You do not specify the address so it is hard to speculate what the seller will or will not do. I am assuming by your question that it is a bank owned property. If this is accurate, the bank most likely has already set the price at 65% of market value (give or take) and will be selling the property "AS IS". Hope this answers your question but feel free to contact me directly if you have further questions as I know the area well.

Good luck!
0 votes Thank Flag Link Tue Feb 28, 2012
Unless you can pay cash, you should move on to a property in better condition.
0 votes Thank Flag Link Tue Feb 28, 2012
I bet the reason you picked this house has something to do with the price. Wonder why the price is what it is? I also bet the bank’s answer is no.
0 votes Thank Flag Link Tue Feb 28, 2012
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