My agent sent me notification of a bank owned house that just fell through - the bank won't finance because of foundation work needed. (Estimate of $3500 to fix) Comps in area between 200 and 300 K . Cash to buy outright from bank... $166.000. Agent said it needs some additional minor upgrades...painting etc to turn into rental.... or more extensive 10-15000 to turn into flip. Why would a bank not loan on this and just include foundation repair in total price? I'm just trying to figure out their reasoning.
Banks have rule books; logic need not apply.
One time the loan for a rental property purchase of mine fell-through because there was a "safety issue" with the home. The "safety issue" was a broken window from the lawn mower throwing a rock. Also, no one was allowed to go on-site to do any repairs until the home was sold. This created a catch-22 for most buyers.
The point is, don't assume the bank knows anything except how to follow their rules. The foundation may or may not be a serious issue so do your own homework.
A rock and a window...and I thought this bank was weird. Of course, that doesn't mean that another bank won't say it's A-OK. I'm actually not in the area right now, so I have no real eyes on, so this one is going to have to slip by me. Lots of fish in the pond, as my mother used to say... another one will come by sooner or later..
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