We have a borrower trying to buy a foreclosure with condition issues that include missing floor coverings, missing cabinet doors, and a missing stove.

Whether or not repairs have to be made prior to close has to do with: (1) are the issues “health and safety” related; and (2) is a “built in” item missing. If yes, repairs must be done prior to close.

When stoves are “built into” the kitchen, they need to be replaced. If stoves are stand alone, they are considered an appliance and should not need to be replaced. The cabinet doors should not need to be replaced prior to close, but underwriters vary on this.

Missing floor coverings are considered a health and safety issue and will need to replaced prior to close.

With foreclosures needing repairs, we get ALL major loan conditions and the appraisal “signed off” before doing the repairs.

When we are certain the loan will fund, subject to the repairs, we have one of our contractors do the repairs just prior to funding.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646

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