Clock is winding down on 1st REO deal inspection. Plumbing issue I need help

Rehabbing, Fix and Flip, Rental Properties
1

My inspection contingency expires today at midnight on my first foreclosure. I am all good with this house that I intend to occupy with the exception of a plumbing issue that popped up:

2 year vacant house for $70k. Needs $2.5k in roof, $2.5 in bathroom and $1k in plaster repair. After fixing it should be a $110k house The rest I can do on my own. Upon getting it de winterized for my home inspection, the water shutoff (in the basement concrete by the curb side of the house) was stuck shut. A professional plumber/dewinterizer forced the valve (it had been overtighted which tweaked the pipe that leads from the valve to the meter. It cracked the threads out of the valve body on the dry side of the system. Now, I can’t get my inspection done, can’t get my bank appraisal and can’t move forward without knowing what this fix might entail. The seller (bank) said they would send a plumber out on their dime to take care of it “within 48 hours”…that was on thursday. It’s sunday now. On saturday they said they would just cancel my contract if I didn’t just take it as is.

So now I am out of time and went off of what the bank (seller) said they would do to remediate the problem…which they didn’t do! The irony of the whole situation is that Fannie May owns the house…I am financing 80% at 5.1% fixed for 30 yrs through Fannie May…the bank I am using requires the water be on for appraisal. So to sum it up; Fannie says "water must be on for loan and Fannie says “you must buy this house without the water on”

Could this be a very expensive fix or should it be fairly easy?

I know a bit more about a lot of different options but it would take a while to type them all out. I am just looking for any basic knowledge one might have for me.

2

Hi,

 It should be pretty cheap, there is a meter box at curb with a water shut off valve? Yes!

If that’s correct then a plumber can disconnect the inside valve, and reconnect one fairly easily, although there may be some concrete chipping if the valve sits in a box in the slab as a plumber probable needs to expose 6 or 8 inches on both sides to connect a new valve.

Probable a 2 to 3 hour fix of about $250 plus parts.

                       GR
3

You were right about the cost.

My bank requires the water be on for an appraisal

Seller bank says “take it as is or we move on to the next offer”

Both banks ultimately are the same; Fannie May.

There is only $200-300 in the way of this deal being completed. One would think that Fannie May would be clambering to help sell a foreclosure for $10k OVER asking, to an 800 credit score buyer with 20% down and who was willing to move back closing at their request.

Furthermore, they said they would send out their plumber to take care of the problem 4 days ago during the inspection contingency…Well they didn’t. I am beginning to feel like I am in a battered relationship. I don’t want to lose the deal but…wtf!

4

I have ad deals that the bank would not turn on utilities for inspection. I factored in the worst case to see if the numbers still worked. For example I would assume the a/c would need replacing and added the cost in to the projected rehab budget. If the numbers still worked go ahead, if they don’t walk on the deal and go in with a larger discount on the next offer.