Posted on: 15th Sep, 2008 07:11 am
I had a realtor recently look at a house. The realtor said that a lender would not loan on a home if it required foundation repair. Are their lenders that loan on "as is" "as repaired" appraisals? Are their must repairs that have to be done before a loan is made?
this marketplace is not one in which a property will be financed on an as-is basis if there are major repairs to be done.
Love the words AS IS. Banks like to sell the property as is but taking a loan out to that same bank will not work. In this day and age and in good business practice. The lender and Realtor and everyone including the seller has a responsibility to have the home safe and out of harms way. Image worst case the foundation moves house comes down. If someone gets killed or hurt. Everyone will be standing there be accountable for letting it go by.
Mike
Mike
Hi Mike
Can you explain "As is As Repaired Appraisal"?
Can you explain "As is As Repaired Appraisal"?
Any property that has issues of safety, soundness, or structural integrity, the appraisal must be completed based on the hypothetical condition that the repairs have already been completed (often termed as "subject to" or "as repaired" appraisal. In this scenario, most lenders will not loan money on these properties until the repairs are completed. It is common for many lenders to ask for an "as is" value to also be included in the same appraisal because some conditions may be waived by an underwriter and they will make a loan based on the "as is" value. There are other options for financing such as hard money lenders but the rates are much higher.
