I have a client under contract for a foreclosed property.  He is getting a conventional loan.  The client is buying the home for rental purposes.  The home does need repairs.  The AC condenser was vandalized and copper pipe stolen and my client factored in that issue in negotiating the purchase price.  We are now outside of our due diligence period.  I have just learned from the lender's appraiser that she does not think this deal with pass underwriting without repairs being made first.  She told me that the AC will need to be repaired, there were a few loose wires sticking out of walls in the interior of the house and portions of the soffits need to be repaired.  These are all things that my buyer was prepared to repair.  However, the appraiser is telling me that due to stricter underwriting requirements, lender will no longer underwrite loans on homes unless the repairs are made PRIOR to closing.  She stated that just a few months ago, it was easier to do "as is" appraisals without requiring repairs before closing. 

 I am interested in hearing other's experiences here.  Thanks.

Alice McCarthy

Re-Source Realty Brokers