I am an REO agent in the area and agree with James below. The banks addendums that you sign have ways for them to cancel the contract. Many banks will fix the damage if properly submitted. The listing agent, who should be doing weekly checks and taking photos of the property, should have sent all the information to the Asset manager along with the damage as well as a police report for damage and vandalism. If the damage is so extensive and repairs are beyond what the investor is willing to repair then I see them wanting to cancel or reduce the price of the property substantially. If they reduce the price you may then obtain the 203k loan and repair the property back to what you want the home to be.
At the end of the day the bank/investor does not want to keep the house, they want to sell it. They also do not want to take more loss than they already have in the FC. Unfortunately the home was vandalized and makes it a troublesome escrow.
I hope it all works out for you and the information you received has been helpful.... more
As a first time buyer, you will be well served to have a termite inspection a s well as a property inspection.
If the terms and conditions being set forth by the seller sound too one sided, WALK away.
A real estate transaction should NOT be so one sided. Buyer and seller need to feel they have both gained something valuable from the transaction. If you feel the seller is holding all the cards, and calling all the shots, this may not be the right deal for you.
Get a loan officer / broker to work out what kind of loan you can handle, and find a real estate agent you like and trust. Starting the process and experiencing it for yourself is the best teacher of how buying a house works.... more