i live in ohio,looking to purchase a forclosed ho me but hear u must have money in an escrow for any repairs needed.is this true?

Asked by mcook0703, Euclid, OH Tue Nov 6, 2012

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Mark's Of Ex…, Agent, Chagrin Falls, OH
Tue Aug 6, 2013
It depends on which suburb... Cleveland heights, South Euclid, Shaker Heights all require 1.5x's the amount of the repair to be held in escrow... Euclid is difficult as well, but manageable...
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Johnnie Zimm…, , Cleveland, OH
Fri Mar 22, 2013
I bought a nice house in Euclid for 23,000. I did have to put 3000. into escrow for the point of sale ( POS ) . This was to make sure that the house was brought up to city code. Mine was to put in a new driveway and some little things around the house. Not to big of a deal and I was given 3 months to do it in and if I had shown I was attempting to get it all done I hear they would extend it. Sometimes you can't get a contractor out that fast. Needless to say the sooner the better. Now I have heard that Cleveland isn't as picky as Euclid but every suburb has their own thing that they are picky on.
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Ron Thomas, Agent, Fresno, CA
Tue Nov 6, 2012
This can vary; depending upon what repairs are needed, and the terms/conditions of the LOAN you select:
Some Lenders require that certain standards are met, for SAFETY and HABITABILITY.
Sometimes, you can get the SELLER to make S & H repairs, even a Bank.
If the repairs are a matter of upgrades and refurbishing, you can either do those things after you move in, or you can get a piggy-back loan that will do the repairs before you move in.
Talk to a local Reator about all these possibilities.
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James Gordon…, Agent, Hamilton, OH
Tue Nov 6, 2012
No you can pay cash and no escrow is needed. A FHA 203(k) loan has a built in escrow and a 203(b) loan needs an escrow added and to work with a lender that allows a allows a repair escrow on a 203(b).
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Even if you get past the bank, some cities have their own point of sale inspections and escrow requirements for those repairs.
Flag Mon Jan 7, 2013
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