Originally Posted by mudmixer
Did you have inspection to base your offer on?
Usually foreclosures are not well maintained or major corrections are not made.
It was kind of the opposite. I went and saw the house and made the cash offer with the stipulations that I could get the house inspected if they accepted the offer. If I could live with what was wrong I would go through on the offer, if not I had the right to back out and only be out the cost of the inspections (Which I can live with being out $200 to get everything checked out. I cant live with being out several thousand by not getting an inspection).
Basically I wanted to make sure the roof wasnt about to collapse in and the foundation about to split in half.
It was most definitely not maintained and I knew the bank would not fix anything which is why I made sure to specify that I only wanted inspections which I would pay for (save for the septic which was on them).
Originally Posted by DaveyDIY
I bought a house from owners - bank agreed to a short sale
So I bought it well below what the bank was owed - $23,600
There was a $5 difference between my offer & the next offer
The other offer wanted an inspection & pricing on the septic - that would not exceed $X
My offer - just sell me the house
It was about 12 days from the date of my offer until I closed on the house
About 3-4 days before we closed the bank held an auction
They were offered $30k for the property, but then they would have had to evict the owners - legal costs & time would have eaten up any profit above my offer
So I ended up with the house
7 years later & lots of sweat equity I sold it for $200k
I spent 2 weeks cleaning it (and having it fumigated) before I could move in
This is mostly like that. I am paying for all inspections with only small stipulations on the banks end (make sure the septic isnt crumbling and cover a warranty for the first two years) which all combined my realtor said is about $500. Normally I dont worry about septic but there are two very large trees in this yard at a questionable distance from the septic. I remember we bought a house once and thank goodness we did the inspection. The previous owners planted a line of pine trees right on top of the septic. The whole thing was practically crumbled to bits.
Had an inspection already been done (since it came into the banks posession) and the septic compromised the bank would have listed it on the site as they did that with one of the other houses they were selling. They also listed a house with a bad roof and reduced the price etc, they are basically very upfront about what they know is wrong just dont want to go intentionally searching for whatever else is wrong on their own cost. The other offer is higher but they want the bank to perform all inspections and fix several things and they have credit history problems and no LSR. I just basically want to make sure the thing wont collapse and I am good to go. I can live with everything else that is wrong.
I will be much like you, its going to take weeks, possibly even months before I can move in and live there because of the fencing and junk and I want to do all the painting before I get in there so I dont have to shuffle stuff around or cover furniture and then live with paint fumes.
thanks for all your help everyone!
On a brighter note while house searching I kept noticing the house was still listed and listed as active. I finally got a bit suspicious and called the realtor who it was listed under. I didnt mention who I was or that I had an offer in just that I had seen the house prior and wanted to make an offer. She quickly told me that it was on hold as the bank filed for bankruptcy but then she told me something very promising. She said it should go to court any day now so the court can decide what to do with the offers on it and the house itself. She said she is surprised it hasnt already gone through the court. I talked with her a bit and found out that if the bank court does not accept either offer on the house then it will either open back up for more offers to sell it off, go up for auction or go to HUD. I can live with the last three options and easily get an offer in for those, the only thing that could go bad is if the court accepts the other offer.