Home Buying in 95124>Question Details

Realsearch, Home Buyer in San Jose, CA

7 days contingency for inspetion for a bank owned property?

Asked by Realsearch, San Jose, CA Wed Jun 10, 2009

Are 7 days enough for inspetion for a bank owned property? Can Bank ask for such condition?

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6
Yes you can get your due dilligence done in 7 days. Remember that day 1 is the day after contract acceptance. Line up a good lisenced Home Inspector before your inspection period begins. Banks are making the rules these days. The standard Arizona Association of Realtors purchase contract has 10 calendar days. I often change this to 10 business days. Any questions about North Scottsdale see our webstie.
1 vote Thank Flag Link Wed Jun 10, 2009
I am going to urge more caution on this one. Seven days is an awfully short window for an inspection contingency. Inspections often call for further inspections, so you want to include that too. In addition, now that the summer moving season is in full swing, inspectors are busier than ever! Most escrow periods do not discriminate between business days and calendar days, so be sure to take that into consideration.
0 votes Thank Flag Link Sun Jun 3, 2012
I am starting to see 5 day inspection windows more & more in our market area. A good inspector should be able to get out to the property in 2-3 days & give you a report within 24 hours. I always recommend you find a licensed & local home inspector not just a general contractor...Inspecotrs look for the little things, contractors are mostly concerned with structural & big ticket items.
0 votes Thank Flag Link Wed Jun 10, 2009
As already advised the 7 day inspection period is manageable. The dynamite ones in todays market is the Appraisal and Loan Contingencies. There are 2 issues with this these:
1. Since June 1st under the HVCC rules the appraisor cannot be chosen by anyone except the bank making the loan (NOT the Loan Broker). This can now greatly increase both the time to obtain the appraisal, and the accuracy of it. Ask you loan agent to explain the details about this.
2. Most Lenders now do a review of the original value provided by the appraisal, and can and will reduce the amount of your loan if it finds that more recent sales indicate a lower value. This review is the last thing done before final approval of the loan and can blow the deal out of the water. If you had previously removed your Appraisal or Loan Contingencies you stand to lose your escrow deposit.
This is something you need to understand fully before agreeing to remove these contingencies.
Tread carefully.
Bill
0 votes Thank Flag Link Wed Jun 10, 2009
If you are getting a mortgage you want to make sure you have a financing contingency as well.
0 votes Thank Flag Link Wed Jun 10, 2009
Hi Realsearch,
Yes 7 days are enough if you have your inspectors lined up to go in right away, and yes the banks get away with it because the way the market is now ( multiple offer situations ) if you want the property you play the game. If it is a good property or a priced right fixer it can be worth the hassel.

Regards,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE# 01397256
0 votes Thank Flag Link Wed Jun 10, 2009
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