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JC Carter
  • New to Real Estate
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Foreclosure auction - unpermitted work

JC Carter
  • New to Real Estate
Posted Sep 19 2020, 16:52

New to foreclosures. I've been researching a property for an upcoming foreclosure sale and found that it has several open permits and a zoning violation where some unpermitted work was done.

I'm trying to ballpark the costs for potential issues with the unpermitted work:

  1. - Cash purchase, so any lender issues would be down the line with a HELOC (is this correct)?
  2. - Insurance issue in the event of a problem with the property (i.e., fire); would there be an issue with getting insurance for the property after purchasing it--whether it's insurance for a foreclosed property or a general homeowner's policy?
  3. - Cost of fixing repairs if they aren't done well
  4. - Potential liens from contractors that may not have been paid (no contractors on file for the open permits, so I can't contact them)

What else should I consider about unpermitted work before making a foreclosure purchase (courthouse steps, not REO)?

    Thanks!

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