Typically with bank owned foreclosures , the bank is selling the home "as-is" and will usually not fix anything. If you still are interested in purchasing the property, you may want to try to obtain special FHA 203K financing. An FHA 203K loan is designed for rehabbing a property that needs work in order to be livable. With bank owned foreclosures ,you have to remember the property has been sitting vacant for quite a long time with no care. As far Code Violations, the bank is not responsible to bring the property to code. It will the new buyer's responsibility to bring the property up to code to pass city inspection. It sounds like this property has many issues that a first time homebuyer may not want to buy into. Before putting an offer on a foreclosure REO, I always inform my buyers that the bank is not responsible to do any repairs that an inspection may require. The Buying Process is all about managing expectations and educating buyers.
Anna Maria Kitras, Broker Associate- Keller Williams