I need to know when finding a foreclosure home what are the loan stipulations?
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From my experience you should secure financing for more than the amount that you are paying for the house. Or since spring is breaking, move forward with the purchase and get a separate loan to correct the heating situation.
I don't believe you will have any leverage with your current loan to insist on a Foreclosed property to be repaired (by the bank, who is presumably who owns it at this time). Worst case, get a different loan with a lender who is more liberal/understanding to your circumstances
I would start with a good Realtor and they could at the very least tell you who to contact. Perhaps a lending institution would be able to help.
obviously the existing loan on the property is going away. the new loan you are getting would usually require that you maintain the house in good order. request an advanced copy of the mortgage docs from the bank or broker initiating the loan.
i had a friend who refinanced a home that had no working heating. he went out and bought a unit used, then after the inspection/appraisal he returned the unit. i always found that to be very odd.
It is possible to purchase a home without any stipulations. I am an investor and have bought a house that is un-live-able. Then I fixed it up.
The bank knew I was an investor and so the appraisal was only to determine the value. It was a conventional loan.
I think you will only have problems if you are using some sort of program to buy a house. Like FHA first time buyers, VA loan or other gov't loan. It is not good to loan people money to buy a house they can't live in, when you know they don't have the money to fix it.
You of course need to get some quotes and have the problem fixed. If you do this as part of the loan that would make sense. You will have to find a lender willing to do this of course, since the house won't technically be worth what you are borrowing until it is fixed they may have some requirements.
The easiest is to get the bank to do it ahead of time, but they will probably not want to.
A good option is to borrow the money from THAT bank, they will have the best reason to do this. Just get three bids and ask to borrow the lowest one to have the house fixed as part of the loan.
But your lender will tell you what they require. You may find ytou need to find a new lender. Use a mortgage broker they will have an idea who might help you through this process.
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