I recently signed contracts on a forclosure that needs to be repaired and updated e.g- new windows, floors, fixtures, walls, appliances etc. Major components like roof, foundation are ok but property as- is would not pass certificate of occupancy inspection. Long story short bank requesting c.o for closing. I went to municipality and they said they do NOT under any circumstance even allow non-owner to apply for c.o let alone obtain one, and they do not issue temporary document. What do I do?
Not sure why the bank is asking for a certificate of occupancy. Are you taking out a mortgage to buy the property? If so and its not habitable then that may be the hang up. This is the case with certain types of mortgages. If this is not the case then it doesn't make sense. An example would be FHA, they would not approve this type of loan.
I'm taking a hard money loan, it's a Fannie Mae property I dont understand either, I signed assuming I could get a temp c.o to appease bank, close, make repairs then obtain c.o after repairs made. I dont want to lose this deal but i feel like my hands are tied. I'm willing to sign a waiver I not sure what the hold up would be or why it's even necessary
@Vincent Dimedio you should be able to get a conditional CO, or the bank that owns the property would have to get one.
Is a conditional certificate plausible when dealing with single family homes?
They are not going to issue a temporary or full certificate of occupancy unless the building is habitable. The building at one time had one, but it may not be habitable at this time. This is where private lending is an advantage. If the plan is to rehab it then I do not understand why the Hard Money lender would ask for this. It should be part of the project.
I apologize if I was unclear it's my lender that is asking for it it's the bank that currently owns the foreclosed property that is asking
OK, now I am even more confused. The bank that owns the property is asking for a certificate of occupancy. That would be there responsibility not yours. You could request a copy from the city of the CO.
Something doesn't sound right.
@Vincent Dimedio yes. A conditional CO just states that the house fails the CO inspection, and will pass if the conditions contained in the inspection are repaired. I had to get one for a VA foreclosure that I purchased