If you are interes
ted in purchasing a distressed home, or one that’s been foreclosed upon, it probably has some “deferred maintenance items” that need to be done. Getting the Seller to DO those items, however, is normally difficult. So the question becomes, what will FHA let you leave undone, while still giving you an FHA Loan on the home.
Here’s what we’re seeing with some “unique” foreclosed Bank Owned Properties and “handyman specials” in December of 2011.
Un-permitted Improvements:
In the last year or two, we’ve seen a couple of situations where a Seller has finished off a bonus room, upstairs, or converted a garage into a living space. If this was not properly inspected and permitted, that space will not be calculated in the value of the property. Sometimes, non-permitted additions and remodels are not completed to code. For instance, if the garage conversion doesn’t have adequate heat or insulation, the FHA appraiser / underwriter may require that these items be brought to code. [Read more...]

Homebuyers are looking for a deal – and sometimes you might think that purchasing a “fixer-upper” might be the best way to go!





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