Home Buying in San Jose>Question Details

Mk, Home Buyer in San Jose, CA

hi, my parents are planning on buying a home that is bank owned. our offer got approved and the bank said we

Asked by Mk, San Jose, CA Fri Jun 13, 2008

have to get the house inspected and appraised by the 20th (which is a week from now BUT it's only 5 working days) or else we would lose our 30k deposit (we have to give it to them on tuesday). our agent told us that they usually give you 2 weeks. is there a law about the duration to get the house inspected? we feel that the bank is making this impossible for us to sell to other people because after they agreed to sell the house to us, they received 5 more offers, one of which offered 20k more than us.

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i actually see this situation as a sign that the house wasn't right for us. i hated the house. it was old and dirty. the kitchen and floors had to be redone. none of the closets had doors on it. the garage was poorly converted into 2 rooms. it didn't come with appliances or anything. my parents are old and i dont think moving into a house that needs work is right for them. the only good thing about it was location. it's just sad to see my parents stress out about this.
0 votes Thank Flag Link Sun Jun 15, 2008
Sometimes it's better to just walk, but you better be sure that this isn't "the" home for you. I would hate to see you lose this home if it is right for you. Buying a house, especially in this market, be it a short sale or traditional sale, there are a lot of hoops to jump through, whether it's from the lender or the seller or whoever, in many cases. Sometimes it's a smooth and easy. You just never know.
0 votes Thank Flag Link Sun Jun 15, 2008
the bank lady wont give us an extension at all. a week is all we get. she wouldn't budge. so now we're saying forget you and canceled everything since she's intentionally making it impossible for us to sell to others.
0 votes Thank Flag Link Sun Jun 15, 2008
Mk, since you must wait for the utilities, let the 2 know that they MUST have your reports back ASAP. It is best to let them know that now, today, not when they are at the home working. Also, if you have a COMPETENT friend, or maybe even the inspector, who can do a prelimenary inspection with you this weekend, ask your Realtor to get you in the home and do what you can, while it may not be everything, you can check the roof, walls, visable mold, floors, windows, doors, etc, I think you get the point. At least this way you will have a good idea of what to expect. Also ASK, do not tell him as you don't want to annoy him, your appraiser to see if he can pull some comps up before he goes to the subject property, which will save him some time. Just let him know that there is a great time restraint. Most important, stay on top of everyone, tell your Realtor to update you at least daily, even if there is nothing to tell, until the 20th.Like Cindi said, "rely on your Realtor... that's why you hired them" I'm not saying be a pain, but just make sure you know what is going on. Also, make sure you are there when the inspector is working if you can, this way you can view everything he finds first hand and you can make a judgment call right then, if possible. If you have any other questions, just post. Good Luck.
0 votes Thank Flag Link Sat Jun 14, 2008
i forgot to mention that the water wont be turned on until monday and PG&E wont be turned on until tuesday (6/17). inspection is scheduled wednesday (6/18). we have until 6/20 to finish everything. so i'm thinking even if we can have someone inspect it asap, the electricity and water wont be on for them to check it.
0 votes Thank Flag Link Fri Jun 13, 2008
Everyone so far have valid points, and I agree. Do yourself a favor, first thing tomorrow morning call your Realtor for a couple names and numbers for an appraiser and inspector they recommend and see if you can get them over to the house ASAP. Usually, if you tell the person your Realtor, who they have gotten business from before told you to call them, they may be able to do the work the same day or next. Be sure to let them know that time is very limited and is of the essence. You may be able to have everything done before you even have to give the $30k on Tuesday, which would be ideal if either the inspector found a serious problem or the appraiser couldn't get the value. Don't be afraid to pay them a little extra for faster service. Good Luck.
0 votes Thank Flag Link Fri Jun 13, 2008
Hi MK,
I hate to say but this is not that uncommon. When buying bank owned property the banks usually have you sign addendums that override the normal purchase contracts. These addendums often shorten the times to do inspections and get loan approvals. They also contain provisions for the banks to keep your deposits or charge daily penalties if you fail to perform. They need to be read carefully before signing.
Good luck, Walter
Web Reference: http://ocnorth.com
0 votes Thank Flag Link Fri Jun 13, 2008
Mk,
Check your contract to see what is specifically says about the inspection. If you know an attorney, it might be worth while to have them clarify this for you and possibly make contact with the bank. It will not hurt, letting lhem know you have legal representation.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Fri Jun 13, 2008
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