Thursday, March 31, 2011

Albuquerque Real Estate - Foreclosure inspection thoughts

Now, before I start on this I want to make it clear that this information comes only from my experience. Your's may have been different but I think the information provide can be agreed upon.

When purchase an Albuquerque Foreclosure in our Albuquerque Real Estate market the term "as is" comes up again and again. If you are in the middle of a foreclosure deal and this has not come up, ask your Realtor right away because it should be crystal clear to a buyer. As a buyer, there should be no doubt in your mind as to what this means. Basically, it means the bank is selling with no warranties expressed or implied.

People ask me time and time again, "what will the bank fix on this property?" and the best answer is, nothing. That way there are no false hopes or expectations. Does this mean that when the offer is accepted you are locked into that property and have no recourse? Absolutely not! If the inspections come back with something bad and you are not comfortable moving forward, then you should be able to take your earnest money and find something else (unless you have made your earnest money non-refundable in the offer which could happen in multiple offer situations).

Now, some banks have been know to repair an item if it is required in order to obtain a mortgage loan. For example, if there is a roof leak in the home and the buyer is utilizing his or her VA eligibility, the bank may choose repair that item knowing now that it is a lender requirement. The bank should know then that if they do not fix the leak, they have just cut off buyers that qualify for a VA loan.

So, if you don't like the color of the cabinets, the bank won't paint them. Big ticket item may be considered if the mortgage could be in jeopardy. That's the bottom line...for now.

Thanks for reading!

by Tim Fish
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