Profile picture for zoeboesmom

I know a REO bank won't usually make repairs but what if the home is not insurable as-is?

I guess my question is two-fold. If the repairs are not made, the home can not be insured nor financed. Would a bank be more likely to make repairs if it was not insurable?

If not, which I know is likely, exactly who do they expect to sell the home to? It's a depressed area, been on the market for over 6 months and no one can buy it because no loan could close without insurance. Are they looking for a cash buyer and hoping a cash buyer wouldn't care about homeowners insurance? Really, wouldn't it just be easier to fix the repairs than to continue to reduce the price and let it sit?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 16 2010 - Jacksonville
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

Profile picture for zoeboesmom
We had 20%, we couldn't find a conventional loan when the house needed a new roof and had structural WDO damage. Can't get insurance in Florida with a roof over 20 years old either. We offered to PAY for the repairs at closing but no go. The house has dropped 40k since we walked away. It became worth the hassle of a 203k but the last drop of 25k drummed up a lot of interest and became a bidding war. House has been "pending" for around 100 days. Now I just want to see what it finally closes at.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 12 2010
Most banks do not want to do any repairs but read the small print in the bank addendums...some say they will fix lender repairs, but not pay for them. (Buyer will have to pay)

Erika in Orlando
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 12 2010
they will hope to find a cash buyer or a conventional buyer with 20% down.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 12 2010
You need to buy with cash or find a mortgage banker that can do a 203K or homepath mortgage renovation loan.  You may be able to get a loan of conventianal financing if you put 20 % down and no PMI
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 17 2010
Profile picture for zoeboesmom
We asked, they won't. I find it hard to believe in this particular market they are going to find a cash buyer for that price. There are too many other homes in better condition for frankly, a better price. Maybe I will look into the rehab loans and make another offer when it's STILL on the market an they've gone through another price drop or two.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 17 2010
Ask if they will make the repairs, otherwise you can ask if you can make the repairs, or they can go ahead and just look for a Cash Offer (which they do often).
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 16 2010
Everyone brimgs up valid points to this discussion. You will never know the answer unless you make an offer and see if the REO bank will be receptive to the repair being made prior to settlement.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 16 2010
Often times they are looking to sell to a cash buyer or someone who can pick up an in-house loan.  There are different types of insurance as well.  Straight homeowners insurance being declined would require many repairs that an REO owner would probably decline to do.  However, if you are looking at getting an "insured loan" such as FHA they may be willing to consider those types of repairs, i.e. a new roof, adding an oven, etc.  All you can do is ask - you may be surprised.  I work with many REO companies and we have gotten repairs done on homes, and often have already submitted repair bids prior to placing them on the market so they will be able to make an informed decision.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 16 2010
You need to find a local lender in your area that does 203k rehab loans.  That way the repairs are made during the process.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 16 2010
Profile picture for wetdawgs
The average lender is so overwhelmed with dealing with short sales and foreclosures, that while your observations make sense, I suspect that the people power related to making these decisions is in short supply.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 16 2010
 
Related Questions
Homepath Property - Small Repairs after Inspection?
Profile picture for Randy  Prusiewicz
Latest answer by Randy Prusiewicz
June 24 | 5 answers
Property Title Issue
Profile picture for Mike &Eve Alexander -  Buyers Broker
Latest answer by Mike &Eve Alexander - Buyers Broker
May 23 | 1 answers
How does Zillow calculate an estimate of what a foreclosure will sell for?
Profile picture for John Reeves
Latest answer by John Reeves
February 20 | 1 answers
quote for hose
Profile picture for Joshua Lerette
Latest answer by Joshua Lerette
January 29 | 1 answers
Can you take out a homepath loan on preforclosure auction?
Profile picture for Tim  Moore
Latest answer by Tim Moore
January 20 | 2 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 929 Stark St, Jacksonville, FL Home For Sale
    929 Stark St, Jacksonville, FL 32208

     For Sale: $500

    • Beds: 3
    • Sqft: 920
    • Baths: 1.0
    • Lot: 6969
  2. 3375 Aldridge Rd E, Jacksonville, FL Home For Sale
    3375 Aldridge Rd E, Jacksonville, FL 32250

     For Sale: $10,000

    • Beds: 2
    • Sqft: 1260
    • Baths: 1.0
    • Lot: 9147
  3. 2668 Saint Johns Blvd, Jacksonville Beach, FL Home For Sale
    2668 Saint Johns Blvd, Jacksonville Beach, FL 32250

     For Sale: $449,000

    • Beds: 4
    • Sqft: 2166
    • Baths: 2.5
    • Lot: 6000