Buying A Home
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Foreclosure "as is" and inspection...

We looked at a foreclosure the other day that is a mess.  While we might make an offer, it would be 1/3 of the asking price due to the fact that the house is not livable and we would be paying cash.  The realtor mentioned that there would be some addenda that we would have to sign when making an offer because the house is "as is".

What kind of clauses are in those?  We want to be able to back out if, say, the inspector finds major issues in the foundation or if the well is bad.  Would we be able to do this?

Re: Foreclosure "as is" and inspection...

  • Yes, you can still back out. It just means that you can't request that the bank make the repairs. You might be able to further negotiate the price if the inspector found major issues (not sure on that).
  • Okay that makes sense.  I knew the bank wouldn't make repairs, I just didn't want to be stuck the second we made an offer.  We're going to offer 30k (they want 89.9, they're on drugs) because of all of the stuff we'd have to do to even move in.

  • The fact that you're paying cash will give you a major edge then, since financing something like that would be tough. A lot of the foreclosures I've seen wouldn't make it through appraisal without significant repairs.
  • imagekaylie622:
    Yes, you can still back out. It just means that you can't request that the bank make the repairs. You might be able to further negotiate the price if the inspector found major issues (not sure on that).
    I purchased a Fannie Mae foreclosure and although it was "as is", they did agree to replace the HVAC system to make the home liveable and therefore finance-able. I would still ask if there is something major, the worst they could say is no.
    image
    After 31 cycles and two losses, we've been blessed with a healthy baby girl!
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    Life of Amberley
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