Foreclosure in Chattanooga>Question Details

Cassie, Home Buyer in Chattanooga, TN

I'm buying a home thats a foreclosure and selling as is. The home was built in 2001 and looks really good.

Asked by Cassie, Chattanooga, TN Tue Oct 23, 2007

I offered full asking price and asked for closing costs. Other offers came up but I got the home. After the home inspection I found that I'll be paying at least $1000 to get the right amount of insulation in the attic and I'm wondering if I should have made a lower offer. The good thing is the home did appraise for $10,000 more than the purchase price. Is there any way to get the money for the insulation at closing or am I just going to have to make the upgrade myself.

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Congratulations on what sounds like an excellent purchase! It's not often you hear of a home appraising for $10,000 more than its sale price. As for the insulation, get a quote from a contractor and ask the seller to escrow the amount to the contractor at closing. They might say yes if they see you are not just expecting cash to put in your pocket. The worst that can happen is they say no, and then you are no worse off than you started. You bought the home knowing it was "as-is" and insulation upgrade is usually an issue that can be lived with until you have the time and money to address it.

Another reason to escrow the money is so the mortgage company won't have any issues. Many limit the amount of credit you can receive at closing and since you already have closing costs credited, another credit might be disallowed. Ask your mortgage rep ahead of time to know for sure.
2 votes Thank Flag Link Tue Oct 23, 2007
Cassie,
Congratulations on your new home!
If you are still in the inspection period you can ask for the insulation to be added at the seller’s expense. They can either say no or take care of it so they don't lose you as a buyer.
If that has passed see if you can raise the price of the home by $1,000 or more and have the money put towards the insulation. That way you don't have to pay for it out of pocket. Since the home appraised for $10,000 more then you paid the lender should be fine with it.
Michael
3 votes Thank Flag Link Tue Oct 23, 2007
Congratulations. If you are still in the inspection contingency period you can ask for a credit. The bank may not consider it a health and safety issue. If that does not work you got a great buy and close asap as there may back up offers.
1 vote Thank Flag Link Tue Oct 23, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
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Pay the $1000 and close quickly. Remember that there are other people dying to get that homeif you back out.
1 vote Thank Flag Link Tue Oct 23, 2007
Hi Cassie, hopefully you will have an ispection contingency in your agreement. If the seller doesn't give you the $1K credit, are you prepared to walk away? How much do you love this home? I
0 votes Thank Flag Link Tue Oct 23, 2007
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