Foreclosure in Lansing>Question Details

Bob, Home Buyer in Lansing, MI

We did have our offer accepted at 15% over asking for this foreclosure and inspections are due tomorrow.

Asked by Bob, Lansing, MI Sun Jan 25, 2009

Funny enough, we ran into old owners and talked with neighbors. There is a drainfield issue which neighbors have called health department as it leaked in their field and moisture in the basement which was disclosed once our offer was accepted. Hopefully they aren't huge expenses, but now that inspections are being done and there could be major things wrong would it be more feasible to ask for a repair or move on if the drain field has to be replaced.

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ask for an extension on the contingencies due to the potential health code violations
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1 vote Thank Flag Link Sun Jan 25, 2009
The Hagley G…, Real Estate Pro in Pleasanton, CA

You can always walk away from the deal without losing your deposit; especially if this is a health issue.
0 votes Thank Flag Link Sun Jan 25, 2009

Mike is certainly on the right track by recommending using the Health Department or any other public entity as a resource. You might want to consider having an engineer give you an opinion of what they feel is going on and what it would require to correct it.

Good luck
0 votes Thank Flag Link Sun Jan 25, 2009
Bob, make your offer contingent upon repairs or health department inspection and report. Don't let the long "AS IS Clause" scare you. Get an inspection and some cost figures once the problems are revealed in writting. Get the health department to tell you exactly what they want done to correct the problem,,,then get a quote on the repairs...dont be afraid to give the report from the health department to the contrcator and then both the report and the repair estimate to the bank. Knowledge is power! The more you know the better.
0 votes Thank Flag Link Sun Jan 25, 2009
These are exactly the answers I was looking for and what my agent said. It is owned by Freddie Mac and was told you want a foreclosure by them. Lots of people want this house, but no one knows the issues surrounding it until you start asking....
0 votes Thank Flag Link Sun Jan 25, 2009
Banks RARELY make fixes. Issues that are uncovered as a result of inspections are more negotiating leverage, then a Seller to-do list. I would say you are in the driver's seat ... especially presenting them an offer that much over what was being asked! Best of luck to you...
0 votes Thank Flag Link Sun Jan 25, 2009

In my experience in dealing with banks I have found they are more willing to do a price reduction when asked for repairs. You should gather estimates and talk with as many resources as possible to determine the worst case scenario of fixing the issue. The good thing for you is that this will likely come up with any other buyer as well.

Do not let the "As Is" clause scare you. It does not mean they will not do repairs or lower the price.

Definitely get a well/septic inspection. It should only cost a few hundred dollars and will be worth every penny. The basement dampness could be thousands of dollars to repair. You are best served getting estimates for the work and presenting those with your remedy request.
0 votes Thank Flag Link Sun Jan 25, 2009
Thanks, I am going to make a call to the health dept tomorrow to see what info may be had. Since the soil is hard clay and there is seapage when a family lives in the residence, I am thinking that it was a good thing that a well and septic inspector was a good thing to have coming. I understand what you were saying, I guess my question should be more do banks offer to fix much if there is a major problem or does it vary...
0 votes Thank Flag Link Sun Jan 25, 2009
No one can effectively answer your question without knowing all the variables, nor should specific advice be given about moving forward, or not, as we are not close to your transaction, nor do we represent you. If you were a client of mine, at a bare minimum, I would request, in-writing, that an extension on your inspection contingency timeframe be given (hopefully you have a buyer's agent and you can together determine how much time to ask for) so you can consult with the local health department, any necessary contractors, etc. Making a decision without all the facts, or incorrect data, is not wise. Be diligent here, Bob.
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0 votes Thank Flag Link Sun Jan 25, 2009
That's a tough call, depending on expenses and complications. Your home inspector will advise you what you maybe in for. Move with caution. Mike
0 votes Thank Flag Link Sun Jan 25, 2009
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