Replies (5)
Excellent tips and advice here, great job.
- Bonnie Adamson, "bonnieadamson"
- Contributions:19
Great post, I would add that my lender accounts will usually repair any issue that is safety related or problem that will affect the marketablity of the home for them right now. Recently I have had lenders strap water heaters, change out ducting, secure light fixtures and repair a roof. the time to ask is once you have been accepted and after you have a reputable inspection done. Include the inspection items that seem urgent and submit a request for repair during your inspection period. Lenders do not all respond the same but it is OK to ask at this point.
- Nick Setting, "NickSetting"
- Contributions:492
Also understand what you Minimum Property Requirements (MPR) are for your loan if FHA or VA Loan...
FHA (http://www.hud.gov/offices/hsg/sfh/ref/chap1.cfm)
VA (http://www.warms.vba.va.gov/admin26/pamphlet/pam26_7/ch12.doc)
Knowing these will help keep you from getting locked mentally into a home that won't meet underwriting guidelines.
I sell REOs for Freddie Mac as well as represent investors purchasing Bank Owned Properties. Most bank will only make minimal repairs if Lender Required ie a fixture replacement, broken window replacement, or items of cost usually under a $1000. Again, Lender Required Repairs, not Home Inspection Notice of Request Repairs.
1% is not always required. I've seen dozens of REO Listings in the $200k-300k sell with only a $1500 earnest money. The bank will usually counter with a request of more if that's a concern, and once their negotiating with you 90% of the time your the primary offer of interest.
FHA (http://www.hud.gov/offices/hsg/sfh/ref/chap1.cfm)
VA (http://www.warms.vba.va.gov/admin26/pamphlet/pam26_7/ch12.doc)
Knowing these will help keep you from getting locked mentally into a home that won't meet underwriting guidelines.
I sell REOs for Freddie Mac as well as represent investors purchasing Bank Owned Properties. Most bank will only make minimal repairs if Lender Required ie a fixture replacement, broken window replacement, or items of cost usually under a $1000. Again, Lender Required Repairs, not Home Inspection Notice of Request Repairs.
1% is not always required. I've seen dozens of REO Listings in the $200k-300k sell with only a $1500 earnest money. The bank will usually counter with a request of more if that's a concern, and once their negotiating with you 90% of the time your the primary offer of interest.
- Janet & Graham Ford, "Tulsa RE"
- Contributions:620
sctprop stated "You shoud inspect the property before you put in the offer."
Please be aware that in some states this may not be possible as this may not be allowed until a contract has been agreed. Then inspections can take place. It will just depend on where you are located and any local practices that may be observed.
Please be aware that in some states this may not be possible as this may not be allowed until a contract has been agreed. Then inspections can take place. It will just depend on where you are located and any local practices that may be observed.
- Dustin Nulf, "The Dustin Nulf Team"
- Contributions:337
having dealt with foreclosures on many occasions, i believe your tips to be helpful, however, in this market, i don't think you would be doing any justice to your buyer by trying to fit in this box. i had closed on a foreclosure with a buyer who had FHA financing, who also was permitted to repair the property (which i have been told on numerous occasions "never" happens). i'm also currently negotiating another similar deal.
i've also noticed that most foreclosures in the area demand 10% down for cash deals, but will accept less for a mortgage deal.
and although a bank likes to sell "as-is", if your buyer is looking for a first-time purchase,... then you really should be trying to get an inspection contingency anyway. NOTHING is ever written in stone.
your tips are fairly accurate, and to all you buyers out there: "buying a foreclosure is not for the faint-of-heart. you have to be pretty well-versed in home repairs and functions"
i've also noticed that most foreclosures in the area demand 10% down for cash deals, but will accept less for a mortgage deal.
and although a bank likes to sell "as-is", if your buyer is looking for a first-time purchase,... then you really should be trying to get an inspection contingency anyway. NOTHING is ever written in stone.
your tips are fairly accurate, and to all you buyers out there: "buying a foreclosure is not for the faint-of-heart. you have to be pretty well-versed in home repairs and functions"
SO YOU WANT TO BUY A FORCLOSED HOME? Tips and Secrets revealed
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