lisa67

So "we've" found a house that is in foreclosure and has had "most" of the work completed. I'm taking my OH to see it this weekend and I was wondering what sort of questions we need to ask to make sure we don't buy a real lemon. It is a new build in the country. It has well water etc.
Grateful for any advice

Ray

Make sure all the subbies have been paid

Tarkak9

Absolutely!! They can come back and put a mechanics lien on the house.

Tarkak9

What stage is it? (the house that is)
Ther are numerous questions to ask. Well, how good is the well... ie, flow rate, potability etc.. when was it last tested?
Is it on septic?
New build... national home builder (Lennar is going chapter 11 I think) or belly up custom builder? Is the lot an illegal lot?

penguinsix

You may also need to check if the permits (zoning) are still valid to continue building or whether they need to be updated.

I'd also double check for water damage (if it rains around there). Sometimes houses that are not sealed from the elements will get rain damage during construction, especially if it is prolonged (such as in a foreclosure).

You might also ask why it was foreclosed. Is that area going through a bit of a depression--layoffs, etc, or was it just someone down on their luck. Buying a foreclosed house in a neighborhood of foreclosed houses might not be that good of an idea for a longterm investment.

scrubbedexpat097

Definitely get well and septic inspected. Check water for coliform bacteria and make sure septic is not oozing into well. If you are getting a mortgage on it most mortgage companies in Texas require the well to be tested.

scrubbedexpat097

...also check if you are in a flood zone. You will need separate folod insurance.

lisa67

Thanks for the advice guys. I know I need to find out more about it and you've certainly given me ideas of what we need to look into. We have been told by the realtor that it's just the cosmetics which need finishing. It is connected to the well, and septic but we'll definitely get those checked out.
The propane needs connecting but the pipes for it all have been installed. The electric is on (the air con was working which is a good sign ?) I was told that because it's not within city limits that I don't need permits to build a garage...any truth in that do you think ?

nethead

Don't know about where you are, but you need permits to do absolutely anything around here including putting up a fence.

Bill_S

Don't believe anything a realtor says without checking for yourself. As for the garage, check with whoever has jurisdiction over your lot. Could be a township, could be the county.

How handy are the two of you?

BritGuyTN

we have some land in sparta, tn

no building permits

at all

the only thing they check is placement of the septic tank

lisa67

We're pretty handy. Realtor says County has juristiction, but I'll make sure we check .

scrubbedexpat097

Lisa what county are you in?

Tarkak9

Not all are full of sh!t but its wise to take the stance of its hearsay until proven otherwise and verify everything to one's own discretion and satisfaction. The problem is that people make too many assumptions about what they are told... whether its truth or fiction or attitude of 'no need to bother b/c so and so is taking care of it..' The key is due dilegence.

My credo with bankowned type of props is that its a liability until proven otherwise. Every property is different so make sure to cover all basis. Cosmetics are just the face of anything... its 'what's behind' the cosmetics which you want to do the homework on.

Every area is going to be different and set their own standards and requirements; so double check with the local jurisdiction about codes and permits etc... see what is on file; you may be lucky and plans may still be around (county planning office?) Well - check for the permit.. has it ever needed to be fractured? Septic system - also check for the permit and final approval... in addition, you want to ensure it was installed properly and also the house was actually hooked up to it - scope the sewer line to see if all is dandy or big issues. Big thing often overlooked! Well permits may be at a state level and septic is a health department (typically)... check with the building dept... as with garage and requirements. Propane Tank - is it owned or leased? (if its not hooked up its not a fixture!)
Get a mold test especially if its ever been in prolonged framing stage.
PM me if you want to.

qwerty007

Whereabouts are you? If you are in one of the bubble areas (California etc), best advise is wait. House prices are still declining at an alarming rate. Foreclosures, short sales, auctions etc aren't necessarily going to save much, and we still have a way to go. Option ARMs and ALT A mortgages reset next year, and many more foreclosures are likely, putting downward pressure on prices into 2009/10. I'd hate to see you buy now and see you in negative equity a month later.