Home Buying in Shrewsbury>Question Details

Chrisskross1…, Home Buyer in Palm Desert, CA

We put in a bid on a foreclosed home and in the paperwork is a Discl. Statement re: Water Damage stating not resp. if any..doesnt that mean THERE IS??

Asked by Chrisskross101, Palm Desert, CA Sun Oct 30, 2011

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Chriskross1 -

Normally with foreclosures there is no way for the bank, the owner, to really know the home condition, and the Realtor is not allowed to make statements about the condition.Basically, you are buying the home as-is and SHOULD GET THE HOME INSPECTED. If there was water damage they are not liable, but you could have mold. In Texas it runs about 10 cents per square foot but I'm sure its much more expensive in California.

CathyBureau
Broker - Owner
1 vote Thank Flag Link Sun Oct 30, 2011
The banks get a little out of control on their disclosures but they have to in order to cover their butts!! Because the bank has never LIVED in the property they have to disclosure everything that could be wrong with the home and title work. I know their addendums seem "Scarey" but honestly they are standard docs everyone signs. I recommend to all my buyers purchasing a bank owned property to make sure they have a home inspection!
1 vote Thank Flag Link Mon Oct 31, 2011
No it doesn't mean that. The bank has probably never even seen the home. You will have to sign many disclosures maybe even one for chinese drywall. Bottom line bank owned properties are AS-IS! they will not be responsible for Anything. Caveat Emptor!
1 vote Thank Flag Link Mon Oct 31, 2011
If your offer was accepted and even though they don't have to give you the same disclosures as done by private owners, they do have to still give you a "Natural Hazards Disclosure, which shows if you are in a flood zone, earthquake zone or other hazard zone. Check whether you're in a flood zone, as that might be the reason for the disclosure, or it just might be a form they give out on all transactions. But as said before, get your own inspections done during your inspection period which is often short on a foreclosure! Best, Terry Bell, Realtor, Santa Rosa, CA
(your thumbs up is always appreciated!)
1 vote Thank Flag Link Sun Oct 30, 2011
This is pretty standard procedure for any seller who has never occupied the property to add disclosures that lists things they can't be held responsible for, simply because they don't know.

Have a good inspector look at the property. Good luck!
1 vote Thank Flag Link Sun Oct 30, 2011
As with any real estate purchase, make sure you have the home inspected by a licensed home inspector. A good inspector knows where to look for water damage even if it was concealed. I wouldnt read too much into the fact that the bank included that clause other than that it highlights the reality that purchasing a home in as is condition has some risk. Do your homework and use a qualified inspector to mitigate that risk.
0 votes Thank Flag Link Mon Dec 5, 2011
Banks do put in all sorts of disclosures and sometimes they are boiler plate docs to protect themselves. That does not mean there is an admission on their part they know it to be true.
Because of this it is very important to do an inspection with a licensed professional to find as much as possible about the home's condition.
I would also suggest working with a real estate attorney and Realtor to help guide you through any potential pitfalls.
0 votes Thank Flag Link Mon Dec 5, 2011
AS IS sale means the bank won't take any responsibility for the condition - which means they usually wont pay for or have issues fixed before you close. Essentially you buy the property in as is condition. They do this for liability purposes because obviously no one from the bank has actually lived in the property.

Make sure you educate yourself very well on foreclosures. They are not for the faint of heart.

Good luck!

http://territory.com/
Web Reference: http://territory.com/
0 votes Thank Flag Link Tue Nov 1, 2011
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