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Old 05-31-2018, 07:50 AM
 
Location: Raleigh NC
7,781 posts, read 6,140,656 times
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to get a refund of your earnest money, it sounds like you have 3 days from when everybody signs it, although there may be another term in the contract or their language that gives you longer period of time.

but yes, you have to make the decision within the inspection period whether the $$ amount of repairs is worth it to you. as I said...

Quote:
you can schedule a qualified contractor to come either at the inspection or still before your loan date, so you know the cost of repairs that you're agreeing to bear.
you should know before writing the offer how much extra cash you have to make repairs. And you can find out beforehand from your lender what kind of repairs they require to be made prior to funding your loan. That second part might kill the deal anyway, since obviously the bank's not making repairs, and you won't be able to make them before closing.

If you've got $20K, and the bank tells you any foundation issues must be fixed first ... then you know if either a)the foundation needs work (automatic deal-killer) or b) the estimated sum of the repairs > $20K that you're backing out.
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Old 05-31-2018, 07:59 AM
 
33 posts, read 12,051 times
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Quote:
Originally Posted by Lockdev View Post
Have bought two foreclosures from banks before and all of that sounds pretty normal and routine.

The bank expects you to know you're buying a house at a huge discount, and that you know what you're doing.

If you're thinking buying a foreclosure is the same as buying a house from a private seller, then you're in over your head and should not go through with this purchase.
The point is that there is no any "discounts", the price is just ok even might be bit higher than everage, the market is hot in the area and houses are sold fast. The house is good, but looks because it is foreclosure we are buying pig in a poke :-(
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Old 06-01-2018, 01:09 AM
 
33 posts, read 12,051 times
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Ok. They agreed to increase the inspection period, now it 10+ days, which I guess is ok. We haven't signed the latest version of the contract, though our agent pushed us hard telling the bank gave us only like 1 day to sign it. The reason we didn't sign is the point 2, where we have to cover all lender's repairs.
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Old 06-01-2018, 08:33 AM
 
Location: Rochester, WA
3,840 posts, read 2,061,340 times
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Quote:
Originally Posted by phantom4 View Post
Ok. They agreed to increase the inspection period, now it 10+ days, which I guess is ok. We haven't signed the latest version of the contract, though our agent pushed us hard telling the bank gave us only like 1 day to sign it. The reason we didn't sign is the point 2, where we have to cover all lender's repairs.

When you go through inspection, have the inspector make special note of issues likely to be flagged by the appraiser, so you know. These are the things you would likely have to fix. Not many bank-owners will take on any repairs to make it financeable.
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Old 06-01-2018, 09:00 AM
 
Location: Athol, Idaho
2,182 posts, read 1,058,232 times
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Quote:
Originally Posted by phantom4 View Post
Thanks a lot for the answers. So, looks if there is something really wrong with the house, e.g. termites, then we don't have way out, we have to fix it on our expense? Also, the EMD is 5%, I guess we will loose it in case we dissagree to repair on our cost, correct?
No not quite what I meant. And again you should be talking to your own agent because they have the contract there in front of them.

In every transaction I've done with bank owned the inspection was to allow for the buyer to gather knowledge about the house and decide if they want it. There was always a way to cancel during the inspection period if the inspection uncovered things the buyer didn't want to deal with. There was even one instance where we were able to negotiate a price reduction due to something that was found at the inspection.
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Old 06-03-2018, 04:05 AM
 
33 posts, read 12,051 times
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Quote:
Originally Posted by Diana Holbrook View Post
Not many bank-owners will take on any repairs to make it financeable.
Diana, could you please explain what do you mean here? Sorry, it is very new area for me.
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Old 06-03-2018, 06:19 AM
 
Location: Rochester, WA
3,840 posts, read 2,061,340 times
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Quote:
Originally Posted by phantom4 View Post
Diana, could you please explain what do you mean here? Sorry, it is very new area for me.
I mean when you're buying a foreclosed home from a bank, they won't usually agree to do any repairs. Appraisers will flag some items that are missing or not working at time of appraisal, and if they do... this can hold up financing until it's fixed. This even means small things like smoke detectors and water heater straps that will only cost a few dollars, that an appraiser will flag, the bank may not agree to do. That is what makes bank owned properties harder to buy when you are buying with financing. So as buyer, either you may have to decide to buy smoke alarms yourself, or walk.

I would have your inspector look for issues like that during inspection. They often know what appraisers are calling out on appraisals in your area.
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