Question we just went into escrow for a Bank Owned propery. During the inspection we found termite and air conditioning damage. The Bank is saying the home is sold as is where is and do not want to pay for any repairs. What should we do?
You have several choices, first you could cancel the contract with
no penalty. Florida bar association approved sales contract aka FARBAR contract
have a inspection period clause (standard 15 days, but they do vary). Within that
time frame you may cancel the contract for whatever reason, regardless if you had
a professional home inspector inspected the home or not and be entitled to a
full refund of your escrow monies. Does the Bank have to do any repair work no, neither does any seller.
Second if you still want to purchase the home despite Termite and Air-conditioning
damage and are not paying cash for the home. Try to have the lender write a
letter saying that the home needs to be termite free with a functioning air-conditioning
system in order to close on the loan. If you are using a VA guaranteed loan you
would have to provide a clean termite report before the lender will let you
close, FHA loans also have various minimum standards of quality that a home
must pass in order to close on a FHA loan. You may have to ask a few times for
the asset manager (the person representing the bank) to agree to pay for the
repair work. In my experience the Bank is more likely to pay for repairs than
give you a credit.
Sometimes the selling Bank will spend a considerable amount of
money in repairs to bring a property to marketable conditions. I have stepped
foot in many Bank owned homes and seen the same color shade of paint and
carpet. I like to call the color Foreclosure Tan.
I hope that this information has been of help, if you or someone
you know is in the market to buy or sell properties in Palm Beach County Florida
and they need the assistance of a Lic. Real Estate Broker, please feel free to introduce
them to me.
1003Karl@Comcast.net
561-379-7881
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