I put a bid on a house, the offer was accepted and it stated pending inspection......?

Question

Now this a foreclosed home, so before we get the inspefction we had to have the city come in and inspect the electrical or wiring. It wasn't up to code so we told the listing agent they needed to get it up to code so we could get the inspection done. she is saying the bank which owns the home won't put any money into the home because there is no guarantee I will buy the home. I like this home alot and really want it but what am I supposed to do here? Any advice?

Heres the problem. I can't have the whole house inspection, according to my realtor until the electric is up to code. It didn't pass the city inspection and the listing agent says they will not fix this. I really want the whole house inspection done so I know what I'm getting into. But it can't be done without the electric up to code, what do I do?

Answer 1

Consider this. If a 1960's home had to meet today's building codes, they would never be sold, nor would most any other resale homes. Building codes change with the times, as they should. But just because a home isn't up to current code doesn't make it inherently unsafe our uninhabitable...it only makes it "not to code." I can promise you I've never purchased a single home that was up to today's code, including one newly constructed home, but it's never stopped me or any of my clients from buying.

Get your inspection done and assuming your contract includes some sort of option period allowing you to renegotiate or terminate the contract should you find serious repair issues, then exercise your rights.

At least in my state, very, very few REO's, and no HUD homes will ever have repairs done to bring it up to code. It just doesn't make since to reinvest in a home knowing you're throwing good money after bad with no possibility of getting a return on the investment.

If the price is right, move forward until you have definitive reasons not to do so.

Answer 2

The house has to be up to code to pass. Why would you like a house that has a propensity to burn? Old bad wiring is very dangerous. It may be that you can get a loan that will pay for the fixing up and the money to buy it. You will pay less for the house because of the loan you have to have to get it fixed up. Solves all the problems. . .The bank should be VERY willing to work with you because they want to get it off their books plus its a buyers market right now. You will get a house that is much better shape but get all kinds of inspections before you sign anything-especially termite, roof, plumbing-so that you are guaranteed a safe house in good working order.

Answer 3

This is always a tough spot for someone who is looking to buy their personal residence through foreclosure from a bank.

Lenders do not make repairs, usually. The buyer is 100% responsible for the property, regardless of its condition.

Also, unless you are paying all cash, no traditional lender or bank is going to give a mortgage for property that has too much deferred maintenance or that is a "fixer."

So, cash is king in this arena, and if you have the cash have the inspection, get repair estimates and see if you want to proceed.

Otherwise it is much better to just look for a different home. Sorry, but hope this helps.

Answer 4

That's odd because if the house is not up to code, then no one should even consider buying it, including yourself. It may cost you more money than it's worth the long run, so just keep hunting.

I don't know my laws, but I don't think the bank can even sell the place if it doesn't meet certain requirements/standards. I could be wrong.

Answer 5

The bank wants to unload the property, and most will expect buyers to purchase as is. The lender doesn't want to deal with contractors, reinspections, bills, delays, etc., etc..

You are either going to have to work something out (in contract form) with the lender that if the electrical is updated you will purchase. But don't be too hopeful.

Answer 6

i'm uncertain why you the two have a criminal expert to boot as an agent; feels like overkill to me. This has happened to to us too. for this reason you have actual assets brokers. events for the different element could huff and puff on the possibility of dropping their value, yet you have performed each little thing genuine. it is your and their brokers which will could desire to take up the stress. do no longer spend every time stressful approximately it. for this reason you pay to have representation. in the experience that your agent screwed up then they are going to could desire to take up the cost. Edit: particular, we live in Virginia the place you're able to desire to have a criminal expert to end the sale - total ripoff. "Ours" did no longer get all the mandatory signatures to launch the deed to us. If we had no longer found out on a recurring financial company line-of-credit application we could have been screwed royally years later by skill of no longer being waiting to sell the domicile.