Inspection Period - Foreclosure

[NumLock]

Here is the situation: it’s a bank owned property, and they didn’t sign a purchase contract +counterproposal until they made sure that the escrow was opened :eek:. I received signed contracts from the listing agent on January 31 2008. Does it mean that 10 day inspection period ends on February 10, 2008? (I faxed them signed counterproposal on January 28)

Also, can somebody tell me how I negotiate with a bank if some defects will be found during the inspection :confused: I already noticed some big window and ceiling cracks. Who will determine how much it will cost to fix these things so we can negotiate on a final price? My client is not willing to go ahead with the purchase if he has to pay thousands to fix the house.

Thank you very much for your help! :o

[RobM]

In Florida..not sure what state you are in, but we calc days as working days so 10 days is actually 2 weeks (calendar). I would hire an inspector and then go get values for what needs to be fixed before the inspection period ends or your client could be on the bill to buy the place...but most likely, the bank isnt going to sue anyone, but they may try to get the escrow

[krolfe]

The key is to get the inspection done within the due diligence period. Then you can try to negotiate with the bank on any repairs, but be aware that most banks sell the houses in "AS-IS" condition. This means that they probably won't be willing to make any repairs. In that case, your client would have the right to back out within the due diligence period if there is something they dislike in the inspection report. That is why it is key to get the inspection done soon.

[Mike Taylor]

As far as the time frame goes, it will depend on how the contract reads and what state you are in. However, most of the time the clock starts ticking once all parties have signed the contract and it has been delivered.

[carlam]

I have had contracts where the bank would not do repairs or give a credit for repairs and I have had contracts where I was able to negociate repair credits. Each bank has their own guidelines.

The date from which the listing agent gave you the signed contract, Jan 31st; you have 10 business days (or whatever timeframe you put into the contract) to get inspections completed. Ten days is more like Feb 13th, but don't wait til the last minute; you need to get a lic. contractor to give you a cost for repair if you are going to ask the bank for a credit or lower the price of contract to offset repairs. Remember, inspection results and request for repairs, price adjustments must be made in writing.