Detroit Real Estate

I had a senior experienced real estate agent tell me today that he could sell his house with a bad roof to a FHA buyer or a convention loan buyer.  I don't know what planet he is on but he doesn't know what banks are requiring today.

Sure he could sell it to a cash buyer.  But to get a mortgage company buy off on a bad roof is impossible in todays environment.   Banks want good colateral.  They don't want houses with bad roofs or no kitchens, or houses that have drywall damage.  They want to loan money on homes that are readily saleable.  Homes that don't need work.

Some banks are really tough.  I had one home lately that was an estate home.  It needed a lot of tender loving care.  It needed cleaning, updating, and minor repairs.  The appraiser commented in the appraisal that is was below average condition.  The bank made us CLEAN THE CARPET, AND REFIX BAD DRYWALL REPAIR.

The house was dirty and they wouldn't give us a loan!  So do you think they will give you a loan on a home that needs $4000 - $5000 in repairs.  NO WAY!!!

So if you are a home buyer that needs a mortgage, and see a home with a bad roof walk away.  Banks won't give you a loan on a house with a bad roof.  They want the roof fixed before they loan on it. 

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