When writing offers on foreclosures most banks will require you to have the section 1 termite work complete. However, most asset managers dealing with foreclosures will pay for the termite work, but some wont. Countrywide for example is one lender that will loan on a property using FHA financing that does not require section 1 termite work. However, you must leave the termite section completely blank. If you mark the section 1 to be completed and the asset manager handling the deal doesn't accept the offer, then Countrywide won't finance with FHA. Again for the stove, most banks require there to be a stove. Again, Countrywide will finance, but they require the buyer to keep $500 in reserves for the stove. When making an offer, I suggest that you ask for the bank to pay for the termite work, if they don't accept, then you will have to re-write page 2 and leave this section blank.
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Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen
I just did an REO where there was no stove and the bank offered a credit for the cost of the appliance. The lender wouldn't allow the credit for an appliance as it was considered personal property. We had to write an addendum to take a credit toward closing costs.
Jan 20, 2009 04:40 PM
Coldwell Banker - Santa Cruz - Santa Cruz, CA
Santa Cruz Realtor (831) 419-9345
FHA loans are pretty new to us here in Santa Cruz but are now being used more and more often. The last one I did did not require Section 1 clearance and asked for no reparis. The property was in ok shape but it is known that that area does have termites. I was surprised when they did not ask for a report.
Jan 21, 2009 03:24 AM
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