OT: Problem with a house I want to buy

AFLGuru · Jul 15, 2008

Couldn't think of a better forum than here to post.

I've got a property I'm looking to buy that is about to be foreclosed on. We're up against an August 13 deadline. I've got a contract in place. The home was recently appraised at 188K, I'm paying 125K for it. 3 beds, 2 baths, and a garage is what's listed on the property appraiser's website. The guy converted the garage into a 4th bedroom but didn't get any permits done for it. He SIGNED the disclosure that said the following...

"Are you aware of any improvements or additions to the property, whether by you or by others, that have been constructed in violation of building codes or without necessary permits?"

He checked NO next to it, but when I asked, admitted that the conversion had no permits.

How much of a pain in the ass am I inheriting if I let this go? I have zero desire to keep it a bedroom. In fact, it's the biggest drawback of the house (it was clearly constructed like shit). I'm afraid of any possible electrical or other structural problems and afraid that the next time I want to do anything that requires a permit that it'll become a pain in the ass.

Any ideas?

TTinCO · Jul 15, 2008

#1 Buying foreclosures can be a big, big pain in the ass as it is("pre-foreclosure" is not nearly as bad). Getting that clean title in your hand is much easier said than done if it goes to the big F.

#2 Don't make his problem your problem without having a code inspector look at it. If you want to make it a garage(what it was originally), it may not be a big deal,but you absolutely positively have to cover your ass.

Has it been through inspection? I would think that they would have uncovered his fib if it had.

TTinCO · Jul 15, 2008

Also, if he lied on the disclosure-any attorney with a clue will be able to get you out of this with minimal cost\time.

You can bail on the purchase in a split second if that's what you want to do.

AFLGuru · Jul 15, 2008

Nah, I don't want to BAIL, I want the house. I'm getting a steal price tag.

Basically I just want to make sure that I'm inheriting something relatively kosher. Any idiot can knock down a wall and convert the thing back to a garage, but I don't want to run into permit hassles of knocking down a wall that damn well shouldn't have been there in the first place.

Uno · Jul 15, 2008

have you had comps run on the home? have you looked into the title? have you had an inspection done?

AFLGuru · Jul 15, 2008

I haven't done a thing with the house yet short of get a contract signed. I've delayed getting an inspection done until they either get the bedroom permitted (which they can't) or put it back in its original shape.

I had a condo bought about 3 months ago that I paid for the inspection only to find out that my real estate agent dicked me over and I don't feel like pissing away $350 again for no reason whatsoever.

Everybody involved knows I'm on stand-by.

Seymour · Jul 15, 2008

BUY THE HOUSE - NO ONE IS GOING TO CARE WHETHER THERE WAS A PERMIT ISSUED FOR AN UPGRADE - if need be you can bring it up to code later.

AFLGuru · Jul 15, 2008

Seymour said:
BUY THE HOUSE - NO ONE IS GOING TO CARE WHETHER THERE WAS A PERMIT ISSUED FOR AN UPGRADE - if need be you can bring it up to code later.

Really strongly considering it. Problem is I know the room isn't up to snuff with the fire codes. There's only a door and no other window or exit door, so it's gotta be a fire hazard.

TTinCO · Jul 15, 2008

AFLGuru said:
Really strongly considering it. Problem is I know the room isn't up to snuff with the fire codes. There's only a door and no other window or exit door, so it's gotta be a fire hazard.

If that's the case, you can make the owner pay for it, or get a couple estimates to get it done & have that deducted from the sale price.

You have him by the short hairs-it's his problem & he has to pay to fix it.

AFLGuru · Jul 15, 2008

Sound advice, TT. My agent has suggested that we get some guys out there for estimates, give them the highest estimate, tell the owner that it either comes off the sale price or he takes care of it.

Sounds like you've got the same general idea I do right now, which is a good feeling. Glad to know I'm approaching this the right way.

AFLGuru · Jul 15, 2008

My other question about this though...

If I buy the house at the lower price and pay to have it fixed, am I going to run into a hassle getting a permit for FIXING what the original owner fucked up?

TTinCO · Jul 15, 2008

AFLGuru said:
My other question about this though...

If I buy the house at the lower price and pay to have it fixed, am I going to run into a hassle getting a permit for FIXING what the original owner fucked up?

You get all that handled ahead of time. That won't give you a hassle if you're bringing it up to code(especially pre-sale).

AFLGuru · Jul 15, 2008

Cool TT. Thanks for your help.

TTinCO · Jul 15, 2008

No problem-I had the luxury of having a good friend who was a mortgage broker and a "flipper" and I dabbled in it myself for a while.

There's good money to be made(well, was-I wouldn't do it right now), but it's a pain in the ass....actually, it's worse than a pain in the ass.

Timetopay · Jul 15, 2008

Permit my ass. The work is done. Buy the house and enjoy

OT: Problem with a house I want to buy

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