Is it a really bad idea to purchase a foreclosure "As-Is" with no home warranty? There are a lot of foreclosed homes in my area; which now makes buying within reach, but it seems like the homes that I like are sold with no warranty.
Any input is greatly appreciated.
2007-11-17 05:57:01 · 6 answers · asked by dweebrgurl 2 in Business & Finance ➔ Renting & Real Estate
You can still do a home inspection at "your cost" this will give you an idea as to any thing that may be of concern to you. As for the home warranty it is usually in place however since it is a foreclosure you can purchase one your self. One of the best out there is Old Republic and usually under the four hundred mark. Do your inspections with a certified inspector (home inspector) and buy the home warranty yourself.
2007-11-17 07:37:46 · answer #1 · answered by Anonymous · 0⤊ 1⤋
No, it's not a bad idea. A lot of lenders are offering homes they foreclosed on in "As Is" condition, because they have done nothing to improve the property after the former homeowners moved out.
You should definitely ask to do an inspection (paid for by you), and walk through the property and check if anything is missing, damaged, etc. The foreclosure victims may have removed all the copper piping, for example, but you won't know that without checking. On the other hand, they may have done nothing to the house to damage it, but the bank simply doesn't care enough to make sure everything is as it should be.
If you are getting a good deal on a foreclosed house, then consider taking some extra money and putting it in the bank, in case you find out suddenly that you need it. A roof might start leaking right away, or a piece is missing from the furnace that was taken by the former owners, etc. It's a good deal because no one is quite sure what they're getting, so plan for the worst.
2007-11-19 03:29:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
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2016-06-03 00:04:11 · answer #3 · answered by ? 3 · 0⤊ 0⤋
It's normal for foreclosed properties to be sold "as-is" with no warranty. I'd even go as far as to say that foreclosed properties are ALWAYS sold "as-is." (there could be exceptions, but I've never seen one.)
You can do a home inspection to see what exactly is wrong with the house, but a bank, which owns this house will not even look at inspection report and they'll not fix anything.
2007-11-17 06:10:26 · answer #4 · answered by REALTOR 3 · 0⤊ 0⤋
If you are considering purchasing a foreclosed property, do not do so without the services of an experienced and licensed home inspector. You will then know the condition of the property you intend to purchase before you actually purchase it.
Lenders never provide warranties of any sort on foreclosed properties. You CAN purchase a home warranty on your own for about $500, but they are nowhere nearly as comprehensive in coverage as one might expect. American HomeShield is but one of several home warranty providers. You can view the levels of coverage at their website. These warranties do not actually cover the HOME, but do cover major mechanicals, such as electrical, plumbing, water heater and major appliances.
2007-11-17 06:04:58 · answer #5 · answered by acermill 7 · 1⤊ 1⤋
For an experienced person this could represent an ideal situation. There are many tools an experienced person has available to assess/minimize the risk.
For a beginner, assuming your NOT going to purchase the property. Walk thru the property. Use all your 5 senses to gather information. Take notes, pictures.
To gain armchair experience there is a program on TV called Flip that House.
2007-11-18 00:31:24 · answer #6 · answered by !!! 7 · 0⤊ 0⤋