For example, the buyer inspected the property, signed an offer, the bank accepted the offer, then someone stole the A/C condensor unit. The bank had a casualty loss, but can't hold the buyer to the contract, since it is no longer in the condition when contracted. The bank normally will offer several hundred to cover the loss, even though it experienced the loss, too, because the market value has dropped.
Other examples can happen, too, such as discovering that the lot is contaminated with hazardous waste, or a buried gasoline tank is found on the property. These hidden defects can subject the seller to liability later. The seller cannot just sign off all liability by saying "as is". If found early enough, the buyer can often negotiate after finding problems, but there is no guarantee.
From the bank's point of view, it is better to negotiate with the buyer who is now aware than put the property back on the market, disclosing the discovered defect. Remember, while the foreclosing entity is under no obligation to supply a seller's disclosure document, it is dangerous under deceptive trade practices act to hide a defect that is known by claiming an as-is sale.
The defect that ordinarily would not be found is what we're talking about, not something that anybody who visits the property can see the holes in the drywall or the missing stove or bad flooring.
It is best in these circumstances to consult a real estate attorney for advice, not a Realtor, if you discover a defect that is not obvious or the bank refuses to negotiate on a casualty loss.
Don't ever go into a foreclosure purchase believing the other side will honor the terms of the contract or you might be sorely disappointed, just I have been on many occasions.
The bank does not have to do the repairs nor does any seller. Home buying is a negotiation process and major issues will most likely be considered by lenders as they want to move the property and sell it as quickly as possible.
Hope this helps.
REALTORÂ® | Mortgage Broker
Austin Real Estate Pros | 360 Lending Group
o 512.669.5599 m 512.633.4157
firstname.lastname@example.org | http://www.AustinListed.com
Keep in mind that AS-IS language is legal language that protects the the seller from future litigation over the condition of the property and does not mean that repairs will not be considered, although with bank foreclosures this is usually the case.
Buyer may ask, after the fact, for repairs/seller to cover some of the cost to repair damage found, etc. but seller doesn't have to accept.....
Meir Aloni & Team
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
RECS (Real Estate Cyberspace Society)
Successfully selling Broward County since 1986!
Direct phone# 954-338-5220 http://www.WeSellBroward.com