Preforeclosure homes and the problems that come with them, continued!
Continued from my last blog "Preforeclosure homes and the problems that come with them"
For those home buyers that are in the market to buy Preforclosure homes and are looking for that steal of a deal, you might want to think about your bargain purchase and the many issues problems that accompany them, before making the big plunge. The Preforeclosure homes that my clients looked at all had their issues, but there are many issues that are unexpected and pop up during an inspection, potentially crashing the contract, weeks of work and taken up lots of time you can't get back.
To bring yourself up to speed, search my last blog ( Preforeclosure homes and the problems that come with them ). We last left off on the the day of the Home Inspection and getting the water turned on inside the home and a huge water leak became immediately apparent. Remember, prior to the Home Inspection, the listing agent spent $1095 of their money on having a water leak fixed, which the bank would not repair.
A couple days later, plumbers find a pipe that had burst on the main level of the home but not before cutting open the ceiling in the downstairs bedroom and the wall in the bathroom on the main level and an adjoining bedroom. The repair was made and all the water pipes check out good. However, when the plumbers where running the water they found another water leak from a drainage pipe, which also burst and also dumping water in the same down stairs bedroom, from the ceiling. Note: This kind of thing seems to be normal with this type of property because the electric is always the first thing to be cut off, but not the water, after a home owner leaves, without paying their electric bill. During the winter the pipes freeze without having the heat on in the home and so we get broken pipes. The plumbers also repaired the damaged drainage line and all seems to be good with the home now. I should note that the Listing Agent, now having spent $1095 on the water line, out of their pocket to make the deal work, invested another $600 to fix the piping, trying to keep the deal together.
The difference between most Preforeclosure Homes and this one is that most agents would not fund such a repair bill on Preforeclosure homes, nor should they, which in turn usually cause the buyer to walk away during the home inspection.
By the way, we are still under contract and passing the inspection period and attempting to get a good appraisal.
Until the next update...
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