Home Buying in Hanford>Question Details

Matt, Home Buyer in Hanford, CA

"This is a bank owned property with limited disclosures."

Asked by Matt, Hanford, CA Wed Jan 14, 2009

I understand the bank owned part whats the limited disclosures mean? anyone shed some light on this for me?

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Chase Harris’ answer
I made a foreclosure purchase in April of 08' and I had to deal with this as well. Basically the bank is not willing to do any repairs to the property or claim to know about any existing problems or the current condition of the property. This is what "as is" is all about. So essentially you will have to step out on a limb and do all of your own inspections and look into the property as thoroughly as possible. I had a small window of time after I put in my offer to check out the property, ie foundation check, inspector etc. There was no option in the contract but that is the way it goes sometimes. In turn I got some solid equity after signing the papers and now enjoy my first home
1 vote Thank Flag Link Fri Jan 16, 2009
Excellent question, Matt. Essentially what the bank is trying to say is that although they currently own the home, they have never lived in it nor do they have or know the full history of the home (i.e. past inspections, past damage and repairs, termite infestations & repairs, radon gas issues, water and mold issues, flood zone, etc.). When you buy a bank owned or foreclosure property, you are basically agreeing to purchase as-is, where-is, inclusive of any and all faults. Therefore, the resulting sale is made with limited disclosures.

Bottom line: make sure you perform your due diligence in all of the above areas. Get a professional home inspection and ask your inspector which tests and inspections he/she recommends for the area that you are purchasing a home in. Warm regards - Ted
Web Reference: http://MyGeorgiaHomes.com
1 vote Thank Flag Link Wed Jan 14, 2009
Vicki Masell…, Real Estate Pro in Duluth, GA
Basically the bank is saying they have no knowledge of the condition of the property, permit status, neighborhood aspects, etc . . . Since the bank is the seller and has never lived in the property they have less obligation than a regular seller to disclose what they know. They want to sell the property 'As-Is'. It is up to you the buyer to obtain any and all inspections to satisfy yourself about the property and know what you are buying. Your Realtor should be able to recommend local inspectors and guide you through the process.
1 vote Thank Flag Link Fri Jan 16, 2009
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