Residential Real Estate Broker · Antioch, IL · Member since 2013 · 87 posts · 34 votes
Hi,
I'm interested in purchasing a property on Hubzu (I'm aware of the many challenges of dealing with them).
The property I'm targeting is an auction that will also accept conventional financing. The trouble I'm having is getting a loan if the water won't be turned on for the appraisal.
Is anyone familiar with conventional lenders that will accept an appraisal that will be done with the water off?
Investor · North Brookfield, MA · Member since 2014 · 24 posts · 2 votes
12y
Hi Matt. You have a couple choices one would be the air test if your lender will accept it. The other is to pay to have the water turned on yourself and turned off at the conclusion of the test if HUBZU will allow that. That's been my experience anyway.
Rental Property Investor · Where we are parked · Member since 2013 · 584 posts · 178 votes
12y
Hi Matt,
It's a general rule of thumb with all lenders on conventional loans. They need to make sure there are no plumbing leaks and that the house is liveable before they will lend on it. Maybe call Hubzu and ask them for referrals for lenders who will lend on their properties and run it by them.
Investor · North Brookfield, MA · Member since 2014 · 24 posts · 2 votes
12y
Hi Matt. You have a couple choices one would be the air test if your lender will accept it. The other is to pay to have the water turned on yourself and turned off at the conclusion of the test if HUBZU will allow that. That's been my experience anyway.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
The lender will depend on the appraisal for identifying impairments. Discuss the issue with an appraiser (and possibly the lender) and see if this (air test) would be an acceptable solution. GSE underwriting, the last I checked, didn't specify this kind of item... it's up to the appraiser. (My disclaimer: I don't purchase with GSE funds *we buy with cash/collateralized funds), so I've never been in your position.)