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roriedlion · Joined: 01 Oct 2008 Posts: 1 1.52 Dollars($)

Is there ANY lender out there that will give us a loan on a house that has a "liability" prob w/ it?...Help! My husband and I are trying to move. We found a house and made an offer. There is a hole in the kitchen floor and it needs to be re-sub-floored. It is considered a "liability" and the bank that owns this foreclosure house is ONLY selling "as it" and will NOT fix it. WE can fix it if we could only get a loan for $210k. We are preapproved for $250k and the listing price is $195k. We can't find a lender that will give us a loan because it is a "liability". Is there ANY lender that will give us a conventional loan on this place? We LUV it! If so WHO? (please elaborate...full detail...ANYTHING!!!) Any help is welcome. We have to move FAST.

smithsussane · Posted: Wed Oct 01, 2008 10:08 pm Post subject:

Hi roriedlion!

Welcome to Forums!

I do not think any lender will agree to give you a conventional loan on this property. But you can take some expert advice. Please check the following link and speak to the lenders :

http://www.mortgagefit.com/unitedstates/

Feel free to ask if you have further queries.

Sussane

Guest

I don't think lenders can give you a conventional loan on a property which requires improvement.

gmakerley · Posted: Thu Oct 02, 2008 8:51 am Post subject:

rorie, as you now know, you can use the fha 203k program for a property such as this. i'm hopeful you'll be able to get suitable financing shortly.

elnoralittle · Posted: Thu Oct 02, 2008 8:55 am Post subject:

I know our company wouldn't allow the loan to go through with out some condition that the flood be fixed. You can speak with the lender to see if can be fixed after the home is purchased and the lender can hold the money in escrow for repair.

You would be given a time limit to repair the floor, only a day more than likely. If the work wasn't completed then the lender has the right to take the money in escrow and hire a contractor to complete the work.

My question is this..how did a hole get in the middle of the kitchen. Though it might be a house you love with a little work to be done to it, I suggest getting a home inspection. There could be hidden issues with the home.

You could take a leap of faith and go through the process of the loan, get final approval pending the completion, and then once approved, if the bank allows it, you can make the repairs prior to closing. Just be careful with this option b/c often times it is written into foreclosure contracts that the bank has the option to withdraw for any reason.

it is a risk, but up to you to decide if it's worth taking, ultimately.

charlesarmbruster · Posted: Thu Oct 02, 2008 11:21 am Post subject:

Call some brokers in your town -- Yellow Pages. With all the lenders shifting their guidelines, only a broker who's on top of today's situation will give you a straight answer. An appraiser will state the liability, the lender will see the problem, so you need one who will accept a 1004D/442 Appraisal Update and/or Completion Report -- ask if they do '442' loans.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

Yes every lender is different in what they will allow. Contacting a broker is your best option. But go with a good one that knows what really does the necessary research for you.

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