REO And Inspection Objection
I have just completed an inspection on an REO property that I have under contract. A number of items were discovered, over and above what I had initially anticipated. I am estimating about 2.5k in repairs to fix the major items and maybe another $750 for minor stuff. I already had the $750 factored in my offer price but I did not have the 2.5K at all. Even if I pay the $2.5K, I still see this as a deal, but I was wondering if I can go in and renegotiate the price based on these results of the inspection? The realtor already mentioned that the bank is not inclined to make any repairs, so I am thinking that I can only expect a reduction in the purchase price.
Is there any strategy in presenting my case to the Bank to better the chances of them agreeing to a price decrease? Also, how will this affect financing? I am already approved for 80% of the purchase price, reducing the purchase price means I go over the 80%. Is it better to ask for a seller credit at closing rather than a purchase price reduction?
Thanks & Merry Christmas to All.
JS.
bump
Only if you had a contigency clause upon inspection or they failed to disclose certain things they are required especially if it requires an adendum that is missing or false.
Like if your 2.5k is for mold, flood or water damage repairs or leaky roof not disclosed or termite damage in some states they have to disclose these things.
Hope this helps.
http://www.thecreativeinvestor.com/commercial/Article472-Insurance_and_the_Subject_to_Dilemma.html
The article referenced will help explain how naming yourself (or your entity) as an "additional insured" will create more problems in the "sub-to" arena...
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For those without the patience to read the article, to loosely summarize. You need:
A non owner-occupied landlord policy with you named as first insured, the mortgage company named and the prior owner should be named as additional insured only.
I stand corrected. I Learn something new every time I click on to this site!
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...it was only a few paragraphs... : )
There are a few other points that make it worth the read, IMO...
Merry Christmas!
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norrist.... Since you wrote the article, you certainly have the right to your opinion.
Merry Christmas.
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