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When Buying A Foreclosure “AS IS” Means “Forget About It”

Jan 10

filed under: Buying A Home, Foreclosures & Short Sales, Real Estate

As Is Foreclosure ContractBuying a foreclosure property in an “As Is” condition can be synonymous with, how do they say it in New York. . “Forget About It”. The Arizona Association of Realtors® “As Is” addendum provides the parties (that’s you and the lender) agree that the property is being sold in its existing condition and the seller (the lender again) makes no warranty to the buyer, except that the seller agrees to maintain and repair the premises so that at the earlier of possession or close of escrow, the property will be in substantially the same condition at the time of contract. All this is well and good if the lenders would accept  the Arizona Association of Realtors® “As Is” addendum. Sorry to say that they do not. These very smart, and not looking out for your best interest, lenders have their own addendum that sadly supersedes ours. As a buyer you need to read their addendum very carefully with your Realtor®. In many cases the lender’s “As Is” addendum protects the lender  from having to make any repairs or be responsible for any vandalism or theft up until and through close of escrow.

So if on your final walk-through you discover appliances have been stolen or the place has been vandalized and you expect the lender to pay for these damages or replace what’s been stolen “Forget about it”. Remember you agreed to purchase “As Is”.

Written by Howard Harris