I'm a first time home buyer, and I am interested in a foreclosure. I want to get a Rural Development loan. My agent called the listing agent to "feel her out" and then told me that they talked about it and decided that the house would not qualify for the RD loan (the well pump is missing), so my only option for this house is a conventioal loan. Is this correct? I would think that another option would be to atleast ask the seller to replace the well pump before inspection. Is it completely unheard of for the bank to do repairs in order for the buyer to get financing? It has been on the market for close to 4 months, and I will be their first offer. Any thoughts?

Also, I passed by yesterday to show my mom and the above ground pool has been covered up, looks like by a professional. This was done within the last week. The pool is in terrible condition and needs to be removed, which we will take care of if we get the house. I'm just wondering why the bank would pay someone to cover the pool...

If the house is dependent on its own on-site water supply; and if that water supply needs a pump to be functional; then I'd say the property is without running water, and probably "not habitable" until the pump is replaced, and thus, also ineligible for a Certificate of Occupancy.

I'd say they'll probably be re-thinking this matter and will be reconsidering what you were told . . . . or limit their sales opportunities to just investors who will buy it "as is".

Call the Department of Agriculture in your area, and speak to the Rural Development program director . . . . see what they suggest regarding the missing pump/absence of a potable water supply.

I forgot to mention that the listing agent didn't even know it was missing until my agent told her. She just told my agent that they are generally not willing to make repairs. I wouldn't think this is a normal repair, more of a health and safety repair but I'm not the professional. My agent called me back and said it wasn't an option without even considering to ask if the seller would replace the pump.

I've sold homes with non functioning wells before. If any loan is involved the well will become an appraisal issue in most instances, meaning that the appraiser will attach a condition to his report that if the well if placed in functioning order, then the house will appraise at the stated value.

This quickly becomes a seller problem, since buyer's loan will bounce unless problem is remedied. In my experience even REO sellers will cough up the dough. They will require about 3 bids usually and it will delay closing most certainly. It pays to have bid lined up and extensions prepared and at the ready.

It is a gamble too, since you are not assured the seller will play along. They may allow the home to go back on the market and sell to an investor.

If you like the home alot and have a tenacious buyer's agent it can be done.

I had an REO seller install a 6000 roof at the 11th hour to appease an appraiser, so it can be done.

Good luck to you.

You can include anything you want on an offer to purchase. Whether or not the seller will accept it is usually the question. But I don't think any lender will lend on a property that doesn't have a source of clean, safe water. Most appraisals require that the appraiser check the operation of the systems of the house, heat, A/C, running water and hot water. When we have a winterized property, we have to have the property de-winterized prior to the appriasal.

I'm wondering how the observant Selling Agent noticed that the pump had been stolen.

If it was a shallow well, the pump should be in a corner of the basement. Maybe that area was somehow disturbed ?

If it's a drilled well, the pump will be inside the casing deep in the ground (often hundreds of feet). You wouldn't notice its absence from inside the building.

Only once, have I had a pump stolen from deep down inside a drilled well (on a vacant house); but it has happened, and cost an insurance company well over $1000.

So, how'd the Agent know . . . . To look, or to ask ?

The pump was above ground in a pump house, not attached to the house. Houses don't have basements down here. There is a pipe sticking up out of the ground that looks like it has been sawed off. I'm the one who noticed in the first place, then my agent told the listing agent who said that it was there when she went out previously.

And the pipe that "looks like it has been sawed off" is a well casing about 6" in diameter and stands about 18" above grade? Any visible electrical conections?

I didn't notice any electrical wires, but I wasn't looking for any either so there may have been. The pipe was about 18 inches above the floor of the well house and was sawed off about 4 inches past the elbow. The pump house was empty besides the PVC pipe.

It almost sounds like the water was being drawn from some other location as PVC is seldom used for a pressurized system (not a well on the Site) and only pressurized from the pump house into the home. So there would have been two (2) pipes, one for incoming and another leading to the house.

Could it be that the Pump House was just for the Pool's Filtration Pump? and that is what was stolen? PVC sounds right for a Pool. And then they may have used an exterior extension cord for the pump. Otherwise, I don't understand the absence of electricity.

I gather you never have to worry about pipes freezing that far south? (Just pumps sprouting legs and walking off!)

That's what I thought at first, but then I noticed the pool pump under the house next to the pool. As far as the electrical it very well may have been there and I just didn't notice. My agent told me that this house is on well water, but the listing says that the house is on "public water"...Another house on the same street says "individual water."

We do get "hard freezes" a few times during the winter season, but I have never had pipes freeze. However, this house is raised, so the exposed pipes may freeze here. I don't really know if that makes a diffrence. All of the vacant houses are still winterized.

Let me add another question a little off topic. How long should it take an agent to get the paperwork ready after you tell her/him you want to make an offer?

5 or 10 minutes; 11 minutes if the phone rings.

It sounds to me that you'll know more about this place than either of the Agents by the time your finished researching it . . . . maybe that's the case already.

Why not call the Town/Water Company and ask how water is supplied to the dwelling . . . . that'll clarify that matter.

I told my agent last Wednesday night that I wanted to make an offer. I called her yesterday after not hearing from her since. She told me she would have it ready for me to come in and review/sign by Wednesday, Thursday at the latest.

I called the water co. just now and they said it is not in their system, so it is most likely on well water.

A week to write an offer? If this deal doesn't work out you might want to start looking for another agent.

Us flat landers can just stick a piece of 1.5 inch pvc 15 feet in the ground and hook it up to a pump and get drinking water.

Always worth a shot. It seems like this would be easy to include if you can word such a proposal in a professional way.

It's good that we haven't moved on to discussing the intricacies of Waste Water Disposal Systems. That'll come later.

So we put in the offer last Wednesday for 82% of the list price, asked for 6k in closing costs, and asked for the well pump to be replaced. The seller is Ocwen, can anyone tell me about this company? Can I expect them to try and negotiate? Or do they usually either accept or deny and offer?

At first blush-- I think you came in too low and asked for too much. One or the other, but not both. They will either counter at FP or reject.

It would help to know these things about the listing.

Days on market
List price
general fair market price (you can estimate)
general market conditions in this area.
Are you getting a loan?

Then I can give you better feed back.

There is a little confusion as to exactly how long it has been on the market on my side. It is not listed as for sale on the local MSL, the listing agent has in a diffrent areas MLS...it has been listed on Trulia for 90 days. The listing agent told my agent that it has been on the market for "a while" which leads us to believe it has been on the market longer than 90 days.

List price is $121,250 which is pretty much market value for the area. I offered $100,000. The previous owners purchased the house for $110,000 in 2005, but since that was 6 years ago it's not really a factor? This house is not in a subdivison and most of the houses around are new construction which aren't really comperable to this house that was built in 1980.

The market is a bit slow around here as far as I know. The listing agent said there have been no other offers.

I am getting a loan, My pre-approval letter is for $117,000 which was submitted with the offer.

There are more thing that need to be done with this house besides the well pump. It is listed as "fair" condition. The entire inside needs to be overhauled, some rotting wood on the porch, steps and under the house, the outside electrical box is too high off the ground, so it doesn't meet code, two cracked windows, ect. My agent actually wanted me to offer even lower at about $90,000-$95,000.

Based on that information I think you did fine with your offer. Thanks for sharing. Keep us posted on how it is going.

The Trulia thing...that 90 days just mirrors the listing in the other MLS. It is possible it was listed with another agent prior to this one. That happens sometimes.

Sellers tend to do price reduxes in 30 day increments. So you might be on the cusp of another price redux which will make your offer much closer to acceptable from the asset managers desk.

Good luck.