What does a corporate owned house mean? And is it safe to buy?

Question

This will be my first time buying a house and I found an affordable house that my girlfriend and I really like but I'm not sure if it is a safe buy. It states that: This property is corporate owned and sold in current condition. No repairs, warranties, disclosures or inspections provided by the seller. Your proof of funds or a prequalification letter must accompany all offers. A special addendum will be made a part of the final contract. Seller reserves the right to negotiate offers in any order regardless of date/time submitted. What does this mean? And would a loan be accepted?

Answer 1

That means a company moved an employee and now the company is the owner of the home, they are selling it.

They can require that you use their lender to pre-qualify you but not require you use their lender for the purchase. However they are requiring you just to be prequalified. Go ahead and get pre-approved, this will add clout to your offer and if they know you can buy it up front will be more willing to give some off the price or other concessions you may ask for. This is typically a motivated but not desperate seller. Other verbiage is in case there are multiple offers they reserve the right to ignore the "first in line" concept.

You mention that you and your GF are buying this home. Bad idea to buy it jointly, one or the other should buy it individually since you are not married; I've many times seen the best of intentions go astray. As bad as it is with married couples divorcing it is far worse with unmarried co-owners splitting. You can always add the other to it after you marry.

Good luck.

Answer 2

We are currently searching for a home to buy. We made several offers on homes with problems, only to find out in the end that our lender wont loan if home doesn't meet certain qualifications. such as excessive mold. we are doing a conventional loan. our bank is ok with cracks in foundation, but no mold. That's the two real big problems to a home. It just depends on if you are willing to spend the money and have time to do the work. Its much easier to buy a home that is move in ready and seller is willing to negotiate and make repairs. then you wont get stuck with a lemon. If you know this is the home you want, and don't mind doing repairs on your own, I would ask your lender what kind of qualifications a home has to meet in order to even get the loan. because otherwise, you are wasting $ on an inspector. and your time. And truth is...you will most likely pay what the house is worth with these type of owners. when you buy a home, look at the "comps". (comparisons) (prices of other homes around same area) if you really want a good deal. find a relator that is working for the buyer not the seller.

hope this helps.

Answer 3

Corporate House Sales

Answer 4

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RE:
What does a corporate owned house mean? And is it safe to buy?
This will be my first time buying a house and I found an affordable house that my girlfriend and I really like but I'm not sure if it is a safe buy. It states that: This property is corporate owned and sold in current condition. No repairs, warranties, disclosures or inspections provided by the...

Answer 5

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The net US savings rate has dropped from about 10% to less than zero since 1980 and and people thought the did not need to save because they could get rich in the market or in real estate, and that is at the root of many of our problems. Many people erred and purchased homes that were over priced and banks gave them mortgages for the inflated prices, and even used creative financing deals to encourage people to buy, and both thought it was safe because the price of the house was "sure" to increase.. The majority of us also voted for politicians that promised us lower taxes that would pay for themselves, and did not pay attention the the government deficit that was a large part of the low net savings. Greedy wall Street bankers played fast and lose with other peoples money and took the nations problems and turned into a banking crisis. There is more than enough blame to go around, but the lesson should be that unrestrained capitalism is not stable, and that financial firm suffer form moral hazarded the must be restrained, and that the government will not do the job if voters are not not responsible in their own life and do not demand that the government be also. The most frighten thing is that even with the almost half trillion dollar deficit that does not even include the cost of the bail outs and the war, people are asking which candidate will cut their taxes the most.

Answer 6

all it means is that it wasn't owned by a family, but rather by a company that held it for employees to live in. It isn't that big of a deal. I'd make sure you'd have your own THUROUGH inspection done before placing an offer, becuase if any damage was done by corporate tenants, and you didn't find out about it until after the purchase, you couldn't go after the company for reimbursment due to non disclosure. kinda like buying a used car in "as is" condition.

Corporations tend to keep homes nice, they want a return on thier investment when they do choose to sell. So I'd bet it is a good choice.

The last part, is that normally, in purchases, a seller is obligated to take the first bid into consideration before any other...in this case, they can have 5 bids and go...okay...that one...based on your prequalifications.

Answer 7

While consumer debt has increased in the past, and perhaps by too much, it is hardly the driver behind the financial problems we see today. These problems have far more to do with big financial firms making shaky deals, from exagerating the credit worthiness of mortgage backed securities to insuring default on the same such things without setting aside any money to pay off when the insured inevitably calls to claim on his insurance policy. There is certainly enough blame to go around. Too many people took out loans they could not afford, from credit card debt to mortgages. And there were too many big financial companies more than willing to provide the loans, despite almost certainty that it could not be re-paid. And there were others willing to provide the banks money to lend, because they could get cheap insurance to assure they faced little risk. But they were ALL being less than honest, and there was no one to ask for honesty. THAT is the biggest failing, in my opinion, and that lies squarely with the US government. Too litle regulation, too little oversight, too accepting of the infallability of the invisible hand. It is an individuals responsibility to make responsible financial decisions. And it is a corporations responsibility to make responsible decisions about the operation of thier company. And it is the government's responsibility to make sure neither is doing things that are harmful to everyone else. So some people who tooks loans they cannot re-pay will lose thier house, and some companies will go out of business and cause financial harm to thier owners and employees, but the fact that the government wasn't do it's job, we all pay the price. So I'm going with A. Bush, Gramm and McCain, and a few others, who were so big into de-regulation of the financial system. We regulated it in the first place because of just such a problem (1929), and these crazy supply side politicians reversed the laws that were put into place to prevent financial system collapse, so of course it collapsed.

Answer 8

As a long time mortgage lender and nationally known credit score expert, my answer is:

ALWAYS hire a home inspector. That is a protection. The fact that the home was owned by a corporation means nothing good or bad by itself.

You can also buy a home warranty yourself.

Answer 9

the pro is that they are carefull to keep to the letter of the law, so thee is probebly nothing wrong with the houses. corps are petriefied of legal action.

Answer 10

Company sales depot but nothing can be says !