Should a Simple Repair Needed on a Property Kill a Deal?
By Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience
(NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656)
Should a Simple Repair Needed on a Property Kill a Deal? In quite a few of my recent Mortgage transactions, I've seen Appraisal Reports where the Appraiser has commented that the condition of the REO property (foreclosed) they are viewing has been "Less than ideal". In each instance, the definition for "Less than ideal" has not been a true cause of concern in the Appraiser's eye. However, I have found each time that the Underwriter has seen this statement regarding property "blemishes" on the Appraisal Report as some sort of red flag. Then the "blemish" has become an Underwriting issue. This has been true even when the Contract and the Appraisal and the Listing all read ... "property to be Sold "As Is". In each of these cases, property repairs were then either: ...
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