Home Inspections

11 years ago

I don't even know where to begin with my questions! My husband and I made an accepted offer on a foreclosure of a home outside Baton Rouge. After some back/forth calls, the home was finally de-winterized so that an inspection would take place. It was discovered in the inspection that 1) hot water heater needed replaced 2) gas cooktop was not working 3) mechanical sewer system needs pumping and aerator replaced and 4) gas furnace needs repaired or replaced. We are planning on doing a VA loan and know that with these "mechanical systems" issues that VA will not approve the loan...nor would FHA for that matter. When our realtor tries to discuss this with the listing agent, all she keeps saying is "as is". We realized that it is a "as is" home, but how does Fannie Mae expect to sell it if it can't pass any of VA/FHA guidelines! And I must add that outside of these "big" issues, the home is in relatively good condition. Are we wrong in our "thinking" here, that these issues would need to be corrected for ANYONE to finance/buy it? I'd appreciate any thoughts, suggestions, advice that anyone could give!

Sort by:Oldest

Comments (10)

barbcollins
11 years ago
1) Why was it leaking? Or just not heating up?
2) Were all the burners not working?
3) Do you mean the Septic Tank? That should not be a big deal or cost.
4) Again why? Did it not come on at all?

Ok sorry, but I need to ask since it's all gas appliances he says are working:

You said the house was de-winterized but did the gas company come back out and turn the gas on? They are usually very reluctant to do so when there is a past due balance (which is usually the case on a foreclosure). Did the bank bring the account current?

Could you smell gas at the cooktop but they would not light?

Is there a valve somewhere turned off?
barbcollins
11 years ago
Also you said his was Fannie Mae.

Is it eligible for the Homepath Financing?
Related Discussions
Multiple Home Inspections on Million Dollar Home
Q
Comments (5)
Knowing what state you are in, county or city might help. You might go to your local building dept and talk to them. Even though most cannot (and should not) recommend a inspector, some do have information who NOT to use. Ex: Los Angeles county does what they call a occupancy inspection done by their building inspectors which are trained in most of what you cover. When we sold, the inspector picked by the buyer was at first reluctant to go around the property as it was rural mountain property. DH was a retired LA county inspector, introduced himself, ( I was not evolved), as we had built the house ourselves. Within a short period of time many of the questions were answered and we only had a few minor things to correct and the inspector was very grateful and appreciated any information DH gave him. In fact he thought he might look into changing jobs. Check the internet to find out more about home inspectors, some fair, but many not trained well as many are general contractors. Just do your homework.
...See More
How concerned should I be about skipping home inspections?
Q
Comments (40)
From what I am reading, you were lucky enough to secure a contract on an unusually large home in a hot market. In circumstances like that, being in the right place at the right time gave you the opportunity to buy a desirable home. If you choose to back out, you will spend more money trying to secure alternative housing, fees and charges duplicated on the next house you find and likely pay a higher price for the replacement. If you back out now, you are guaranteed to lose money, but if you close, you have a fairly good chance that you haven't bought a problem house. Most issues found in a home inspection are not deal breakers, especially if the property was built in the past few decades. Old houses are more likely to have expensive problems but if this is a newer home, serious issues aren't as likely. In my area, most sales are as-is with an inspection clause which allows the buyer walk away if there are substantial defects found. In common practice, buyers request certain items to be fixed and sellers often fix issues to avoid losing the sale. However in a hot market, sellers are likely to refuse to fix issues unless lenders refuse to finance the purchase.
...See More
Can a tenent refuse to let buyers in home for home inspection?
Q
Comments (40)
Just some input from someone who currently has quite a few tenants and has been dealing with unusual situations this past year. First, the Texas moratorium on detainers ends on March 31st, that only includes detainers for non-payment and so other types of evictions are allowed. However, on March 31st the flood gates are probably going to open up so be cautious depending on scheduling something after that. A forcible detainer action is expensive and the former tenants do not surrender their property. Typically some legal representative, in our area it is a Sheriff, shows up at the property and removes the tenant and waits until all their property is removed from the rental. You pay the sheriff an hourly rate here of $50 per hour and there is a time limit (here it is four hours). During that four hours you must completely clear the home of all furnishings and clothing and place them on the curb. You may not take anything that has been abandoned without a separate court hearing and order. Generally, speaking a detainer action will cost me more than two months rent as I have to pay the sheriff, the movers, and the attorney. It is almost always easier and cheaper to pay the tenants to vacate. There is currently a law that went into effect in September 2020 that allows tenants who are ill to refuse any inspection if anyone in the home is ill. It specifically notes that tenants need not have Covid and can't be compelled to provide proof of Covid for reasonable delays to inspection. The attorney who does all my detainers sent a mass mailing out to all his clients in September notifying us. I have no idea how this has since been tested in court, but I do know I wouldn't listen to the legal expertise of your realtor or theirs right now. Right now being a landlord is a crazy mess, there are state laws and conflicting Federal laws. If these tenants and all of their things are not removed from the property I wouldn't even consider closing right now. I have thirty years in the rental game and you couldn't pay me to even consider buying a house with a tenant in it right now. Good luck.
...See More
home inspection NIGHTMARE
Q
Comments (24)
There are several issues related to the roof. It appears the shingles may still have life left, but that the flashing seems to be failing as it looks like it is leaking below a roof penetration. To fix leaks like that you need to take off the shingles in that area and replace and since there are several spots needing help replacing the roof appears to be the best action (although seller is likely to disagree). The bathroom fans would need some vents added to the roof so that you can vent them outside. Not sure what kind of mold and what needs to be done there, but that doesn't seem major to me if you replace the roof. If the roof was replaced you could replace the sheeting in that spot and have it completely removed and with the additional roof vents connected to the bathroom fans the problem would be removed. The roof is likely going to be the most costly part and you have to decide how you want to handle that. The sump pump could be grandfathered in if at some point the area allowed draining into the sewer system. If not then this could become costly and I would want a quote on before deciding how to proceed. The venting from the water heater (due to the gas issue) and the ejector pit would be areas of concern and I would insist on those being fixed before I moved in. Sewer gas isn't healthy to have leaking into your house. The rotten wood in areas seems like deferred maintenance and should be addressed to avoid further damage. I'd get a quote to see how much it would cost as there appears to be a lot. My first house I bought we had to do a lot of wood replacing as well as the roof. However, the roof was done as part of the sale with money in escrow. The one thing we ran into that was unexpected is being able to match the paint color so we had to repaint the whole house. We got a close match after several tries, but the difference got worse with time so we re-painted the whole house after 2 years. The down spout is an issue, but you can extend it out some so it drains on the sidewalk and deal with it in a few years. Not an emergency either way. The water on the floor would concern me and I'd want to know the source. The hot and cold water switch in the master is not a normal thing, but you guys will get used to it and unless you have guests using it then it likely won't be an issue. I would consider that a "you can fix later and don't worry about it now." If there is an access area for the pipes to the shower then this wouldn't be that hard to fix. If not it is more involved and will depend on how easy it would be to get to the pipes in the wall.
...See More
cajelidi
Original Author
11 years ago
@Barb...
1) hot water heater - not heating up
2) stove top not working at all... (my husband thinks could just be clogged burners, but..)
3) yes, septic tank
4) furnace - not coming on.

The gas was turned back on without any issues. Have no knowledge if previous owners left a balance. I guess my biggest question is do they not have to have these issues fixed due to be able to have the home in "liveable" conditions? We are financing thru VA (no down pymt) and I know that Homepath would require 3% down...not even sure if eligible for Homepath. I'm just not understanding their refusal to budge on these items.
And you're right, the majority of these issues could be easily fixed and quite possibly my husband could do them...the problem is getting the VA to approve loan! :(
barbcollins
11 years ago
You can check to see if the house is listed on the homepath website.
http://www.homepath.com/

Banks frequently do this because they hope eventually a cash buyer (or maybe a Homepath buyer) will come along and not worry about it.

I watch the MLS listings in our area (as we will be selling in the spring) and I see this frequently on foreclosure listings.
ncrealestateguy
11 years ago
Tell your agent that you demand that the listing agent contact the seller and let them know that if they repair only the items needed to pass the VA appraisal(inspection) then you will go to close. Otherwise, you walk. In my experience, banks have come around quite a bit over the last 5 years in regards to repairing items needed for financing. Especially if it is a house in a price range where it is doubtful that an all cash buyer will come along. You have to make sure it gets conveyed to the lender, and you may request to have the email response back from the lender sent to your agent, to be sure the listing agent is conveying this info for you.
marie_ndcal
11 years ago
Before you can do some of these things, you MAY need permits. Go to the building dept and check this out. Only the owner can obtain these and the house may be required brought up to code per loan docs.
kirkhall
11 years ago
To answer your last question re:financing..
It may be a house that can only be bought as a cash sale--no financing.

But, I'd try nc's recommendation if I were you. Doesn't sound like you have a lot of cash to take care of these things yourself and buying it out-right isn't doable.
ncrealestateguy
11 years ago
Even if you do have cash to repair these items, NEVER repair something before you close! It is not even close to being your home. The seller needs to do this.
Gina_W
11 years ago
As is means the seller (bank?) is not willing to do ANY fixes. "As is" is a common foreclosure situation. Did your your agent not know that this listing was an "as is" foreclosure that would be an issue with the VA loan?
RooseveltL
11 years ago
FannieMae and other GSMs choose AS-IS to avoid liability. This is a big racket as they don't have resources or funds to rehabilitate homes which they bought improperly in the past. So, now they try to flip it to unknowing buyers and if you surface defects with the home - they will simply take it off the market for 60-90 days and relist it with a different agent AS-IS.
I would request a significant reduction in cost and provide report of what you find? They will respond with disclosures advising you are aware of possible issues which THEY alerted you of in the process. If you can't find financing they will record it as unqualified buyer.
It is a very sick process and I haven't found the government official I can write about this but when foreclosures return to the market it will be another round of bad quality homes entering the market place to new home buyers looking for a deal which may end up in foreclosure again.

Home Inspections

Comments (10)

barbcollins

barbcollins

Related Discussions

cajelidi
Original Author

barbcollins

ncrealestateguy

marie_ndcal

kirkhall

ncrealestateguy

Gina_W

RooseveltL

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Home Inspections

Comments (10)

Related Discussions

cajelidiOriginal Author

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

cajelidi
Original Author