About to put in an offer. Listing states FORECLOSURE. SCHEDULE A REQUIRED WITH ALL OFFERS. "AS IS, WHERE IS"
After a Schedule A read it looks like a lawyer is needed to review along with title or survey insurance. Any members with foreclosure purchase experience seen this type of document and is it standard in foreclosure listings?
Of course was intending to subject offer to initial viewing, building inspection, financing approval
Uploaded the PDF pages with highlighted areas of concern.
New member ... first Post... any insights appreciated.
Brad Jaeb

Read clause 7 on page 3.

Likely a grow op related moisture and rehab issue. Unless you specialize in that, know what has to be done, can size the rehab work, can do the rehab work (both financially as well as logistically) AND can close in cash: Stay away.

I'm not a foreclosure expert, but OK with using all statements of a contract as a negotiating tool. Since the seller is out of the picture, schedule A-1, pg.3, section 5 seems fair for a lender to add. As for section 7, the environmental contamination may be a huge cost and a good negotiating tool here. Of course, you'll probably get rejected by lowering the price a lot, but time and circumstance may change that.

Schedule A-1 pg.1, section
Yes, "as is where is" , the seller has no say and you are to do your own reviews. If you are to proceed, I'd definitely get the best inspection company and be there with them. Of course, they won't help for any environmental issues, as they inspect and advise you of issues.
Schedule A-1, pg.2 - title , time and acceptance seems normal.

Just had a friend buy a foreclosed house with an offer of $568,000 and both realtors were OK with it, so it was accepted. Well, the court stepped in and said this home will not be sold under $620,000 to the surprise of both realtors. Time and circumstance changed and the home was sold to my friend a month later for $568,000....ahh the scare tactics.

All good points. I would suggest that you hire an environmental contractor that specializes in mould, asbestos & lead paint abatement. Remember its a cash deal & you'll need deep pockets. Doug

There is also a possibility that the enviro clause is standard boiler plate wording on that particular bank/law firm's Sched A - due diligence is a definite must

dplummer said:

All good points. I would suggest that you hire an environmental contractor that specializes in mould, asbestos & lead paint abatement. Remember its a cash deal & you'll need deep pockets. Doug

Click to expand...

Sorry, late to the party here... DPlummer, why do you say it is a "cash deal"? Financing is available for foreclosures as far as I am aware.

Trevor

Hi Trevor. I can only speak of my experiences here in Ontario. Banks won't touch a grow op or mould related property. We use private money to purchase these. Also, having a repair estimate from an environmental contractor really helps in negotiating with a bank to purchase their "non performing asset". Grow ops & mould makes Banks want to unload these types of property. All the best on your venture! Doug

Hi Doug - Agreed banks won't touch them, but credit unions will if you have a good relationship
We are in the process of buying a foreclosed property with a legal grow op inside. VanCity Credit Union has agreed to financing at standard terms.

My first time through the foreclosure process. The "as is where is at time of possession" condition in Schedule A is a little daunting!

Cheers,
Trevor