Cash out refinance without a clear CO?

Question

Does anybody have experience with a cash-out refinance without a clear CO? There are tenants living in the SFH but it's quite "messy" and I don't have a clear CO.

Peter Lysiak · Answer

@Jenny Roman that's helpful. Thanks for the input!

Jenny Roman · Answer

@Peter Lysiak based on my experience all items must be cured prior to issuing the CO. In some states a TCO will be accepted but the deferred items must be cured prior to closing

Peter Lysiak · Answer

@Jenny Roman Got it. I guess my question is more in the realm of, will a bank not lend on a property if the Certificate of Occupancy has not been renewed. I know that banks will not lend if the property is not "habitable" (e.g. electrical, plumbing, etc.) but will they not lend if there are certain items on the CO report that have not been fixed during a refinance (e.g. window needs to be replaced, interconnected smoke detectors, fire code items, etc.)?

Jenny Roman · Answer

@Guifre Mora and @Peter Lysiak  When you're buying, renovating, or in a legal fight with a landlord, the term Certificate of Occupancy, or C of O, may come up. And while this legal document doesn’t sound all that important, it actually has the power to win legal cases, end negotiations. What makes a C of O and a TCO such a big deal? Without them, no one can legally occupy a building, so if you are in a building that doesn’t have these documents except in few rare instances, you run the risk of the city issuing a vacate order.

Peter Lysiak · Answer

@Guifre Mora

yes co meaning certificate of occupancy

Guifre Mora · Answer

CO-Certificate of Occupancy?

Cash out refinance without a clear CO?

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