My post about what part of as-is don't you understand got some very good responses regarding the difficulty we all occasionally have getting clients to really understand that the bank doesn't want to do anything at all to the property. There is a flip side to this though. What do you do when the bank hasn't reduced the price to investment grade but there are structural or code violations that insure the fact that a lender won't approve a loan on the property. This can kill a deal quicker than a bullet.
The most recent one I worked on near Lake Oconee had a failed septic system and was supposed to go USDA. Fortunately, the agent on the other side was very good and cooperative and somehow got the point across that it wasn't just my buyer but that NO buyer would be able to finance a purchase in this condition.
Sure, if they want to drop the price another 40k they will probably get an investor in there that will pay the 4k to fix it and take it truly 'as-is' or they can often drop the price to cover the repairs if the buyer will then go FHA 203k. But it is important to note, especially for the less experienced in the REO process, that sometimes in the case of severe deficiencies 'as-is' can be tweaked a little bit and a client can get a really good home for a fair price. This is why on a foreclosure the inspection is still very important. Sometimes even more so that a fair market sale.
Happy Closings
Chris :)
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