Home Buying in 57104>Question Details

Lisa Dresch, Home Seller in Sioux Falls, SD

is a foreclosure sold as is?

Asked by Lisa Dresch, Sioux Falls, SD Sun May 12, 2013

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Most often this is the case, though on rare occasions you can get the bank to make some repairs or renegotiate the deal. However anyone buying a foreclosure should assume that the bank means what they say when they list the property "AS-IS"

Additionally the time you have to inspect a home and decide if in fact it's something you want to buy is very limited, typically 10-14 days and this requires you to be ready to descend on the house with your inspectors the day the contract gets signed and this can be difficult as the sellers of these property lack both communication skills and common courtesy.

I've attached a link below to a much longer piece I've written about buying foreclosures and encourage you or anyone thinking of buying a foreclosure to read it first. As someone who has a lot of experience with foreclosure sales I assure you they are rarely the deal most buyers falsely believe them to be.

I wish you the best of luck.
0 votes Thank Flag Link Mon May 13, 2013
Sold As Is- is usually the phrase attached to bank-owned homes. This means that you will purchase the property in its current condition.

However, this does not prohibit you from conducting a home inspection to make sure that any obvious defects and issues with the property are uncovered so that you can make an informed decision whether to pursue the purchase or terminate the contract during the home inspection contingency period.

There are cases when banks will allow repair prior to home inspection. This is a case-to-case basis.
Like for instance, if the utilities have to be activated for home inspection and during this time, it was found out that the hot water tank could not be filled by water for home inspection because it was leaking, the bank had the hot water tank replaced prior to home inspection.

Other banks may have different policy. But not all policies are written in stone.

Good Luck
0 votes Thank Flag Link Mon May 13, 2013
Almost always. However, some homes that cannot be sold with certain defects, such as mold or pests, will have an allowance to fix just that problem. Call 605-360-6639 for more info. THANKS George Hahn
0 votes Thank Flag Link Mon May 13, 2013
Almost always foreclosures are sold "AS IS" but more and more you are seeing foreclosed properties in better condition. Cash for Keys is an incentive offered to some occupants to ensure they leave the home without trashing it. Also, if the home is close to being finaneable, the servicer may request some minor repairs. It really depends on the bank your dealing with. You should always have an inspection done before buying a home, especially a foreclosure.
0 votes Thank Flag Link Sun May 12, 2013
Yes, This is how they hurt our market values. However that question is open ended. "Some" banks will make minimal lender required repairs, and then you have HUD, Fannie Mae and Freddie Mac properties or other options are 203K and 203B loans that allow buyers to make repairs and upgrades with very little down. You need to speak with a local knowledgable Realtor.
0 votes Thank Flag Link Sun May 12, 2013
Hi Lisa,

Foreclosures are sold 'as is'. However, that said, if there are safety issues it doesn't hurt to have your Realtor do a request for repairs form. All the bank can do is say 'no' but there have been instances where they will do the repairs. ONLY for safety issues, not cosmetic/non safety items.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes Thank Flag Link Sun May 12, 2013
Thanks, this was helpful. I've never bid on a house at auction before, as I am sure most people haven't and it is scary to me! Yet the right price and we may do it.
Flag Sun May 12, 2013
Yes one cannot expect the Bank to do work on a reo property.

In some Rare cases they have actually done work to prevent future repairs or on a case by case
Basis say the home is missing a heater or a stove.

Goodluck.
Perry
0 votes Thank Flag Link Sun May 12, 2013
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