Anyone familiar with the HomeStep program? The seller's addendum advises that the home is offered in as is

Asked by Buddy, SOUTHERN MARYLAND Tue Feb 17, 2009

condition with no repairs, inspections, etc to be provided by the seller. A home inspection (at the purchaser's expense) cannot be performed until after the date of acceptance by the seller. And then it has to be done within 10 calendar days. Is this the normal way? Any deficiencies found by the home inspection must be brought to the attention of the bank which currently owns the home (through a foreclosure) within 12 days from date of acceptance with copies of the report and statements as to why the buyer wants to withdraw the offer in writing. Something sounds wrong to me. Seems like if an inspection could be done (at my expense) prior to making an offer, I would have a better idea of what to offer. Any thoughts?

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Vicky Tesh, Agent, North Myrtle Beach, SC
Mon Feb 23, 2009

This is the normal with foreclosed properties, the banks have no knowledge of the property's operating systems and conditions, therefore they sell "as is". However you have the right to perform inspections and then withdraw your offer/ contract if your inspection does reveal negative information about the property. Your Real Estate agent should be sure to use the proper forms required by the institute that is selling, as most foreclosure companies usually have required addendum included in the necessary paperwork when selling these properties. If you have not chosen a Realtor to assist you in purchasing property here in Little River, I'd love the opportunity to discuss your Real Estate needs and the chance to become your Buyers Agent.

Vicky Tesh
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Charlene Ble…, , Marion, NC
Tue Feb 17, 2009
Hi, Buddy... I certainly understand your concept of pre-offer inspections, but the scenario you quoted is indeed typical with all Freddie Mac (that's HomeSteps), Fannie Mae, HUD, and most bank-owned properties. It gets a little scary, but you, your agent and your home inspector must be diligent in the inspections, and if the offer you've made is inappropriate given discovered deficiencies, you can withdraw the offer based on that. In some states, your real estate agent may have forms specifically for this purpose and it'll only take a minute to fill it out and fax to the seller. Then you can submit a new offer based on needed repairs. Again, that's more typical than you can imagine. Just do your due diligence in a timely fashion, and you should be okay! Good luck!
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