The new extension will permit buyers to continue to use FHA-insured financing to purchase HUD-owned and bank-owned properties, no matter how long the homeowner has held the title, through December 31, 2012. FHA says the waiver will accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight.
Homes bought and sold by flippers are often inspected more than once.
By the time many of these properties are finally foreclosed on, they are in an extremely poor condition, riddled with deferred maintenance and do need someone to go in and fix them up. Having said that, I have seen some of the strangest improvements imaginable on some of these homes.
To say that a buyer would be prudent in having a Home Inspection on a flipped home, is… an understatement!
Leaves one to wonder if the “premium” that is being paid in the flipped vs. non-flipped price would have been better served in a piggyback loan for repairs, via a bit more conscientious repairs. From what I have seen, some of the repairs that have been performed prior to sale, are less than prudent and may result in a higher cost of repair… the second time around than what would have been needed to fix it right the first time.
I would imagine we will start to see a large number of these foreclosed and flipped properties again by spring of this year.
Oh my God you took the words right out of my mouth, Tim…!
Its Incredible…!!
GET AN INSPECTION…!!!
A ever day experience here , takes longer but steady work lolol.
In my area the banks are sending in crews to “rehab” foreclosed homes; fresh paint, carpeting and new appliances. With both flipped and foreclosed the seller discloses nothing about the condition of the home and the home inspection is the only method the buyer has to discover what is hidden behind the new decorations. Steady work and I think 2012 will be just like 2011.
Same here , The mortgage companies are using the wow factor
Every “Flipped” property I’ve inspected (hundreds) generally have so many amateur installations they take as long, if not longer to inspect than a Short Sale or Bank Owned property with so much deferred maintenance the average person would not think is possible to achieve during the time period the house was built, until repossessed.
Anyone buying a Flipped Property should hire an experienced inspector who knows where to look for the Life Threatening Amateur Installations we find at Flipped Properties.
Hidden Rot Caulked-Painted.
Painted air conditioners which look new, but are 20++ years old.
Roof coverings partially patched by an amateur so they look nice from the street.
Single strand aluminum wiring spliced to copper by an amateur (Fire-Hazard).
Interiors freshly painted to hid the roof leaks (until it rains again), then they apply more paint.
Plumbing leaks at newly installed Fixtures.
New Receptacles wired incorrectly, reverse polarity, and/or lack of Ground.
GFCI Receptacles not wired properly, will not disconnect electricity as designed.
Slow Drainage at Fixtures.
Windows with broken Sashes/Balancers.
Flues venting Carbon Monoxide into the attic or garage (Potentially Life Threatening).
Dryer Vents plugged solid (Fire-Hazard).
I could add another 100+ items, but these are a few deficiencies commonly found at Flipped Properties.
Buyer Beware…!!!
Sounds like it is time for Nick to write another home inspection article.
When inspecting this type home I make a point to open the fridge, operate the microwave & oven at the same time. More often thaan not a breaker will trip.
What is needed.
is the governmental waiver
on foreclosed properties…
The BANK / Government / Taxpayer Knows…
BUT
the law allows Banks to hide behind
I Do Not Know
sooooo.
I Do Not Tell…
If the Bank holds title to a property,
The bank should be held to the same standard
of disclosure
as a homeowner
that the bank has just taken possession
of the property from…
hmmmmmmm
a novel idea,
not to be seen under an Obamy Administration
too capitalistic
…
not socialistic method of re paration…