A broker that I know has a house that is a Reo but , it has a fail title five, is a good idea to make an offer ? Thank you
Howdy Txiki:
I had to look this up too. What type property is it. Title V is Federal environmental regulations and it sounds like the property has some problems that need to be corrected. Old gas stations are always a good examlpe where the tanks leaked and the soil needs to be cleaned up around the area. Other concerns are lead based paint and asbestos and other chemicals.
It is not a good idea to bid on the property until you get full disclosure about the conditions and have a knowledge of the costs to cure.
Hello Tedjd and thank you for your response
Title V is related with the enviromental, here in
Massachusetts is related to the septic system, this broker have a few properties
that are reos, but they need to be fixed, if not done you are not able to sell it.
One more question if I may, is it possible to get financing in this type of properties?
If so, can anybody tell me where can I get it? Thank you for the help.
Howdy Txiki:
I thought by the txiki name you were from Texas.
Conventional lenders will not loan on the properties until the septic is repaired. You will need a private source of funds or hard money lenders. There are FHA loans for buy and fix and owner occupy deals but I am not sure about speculative ventures.
There are hard money lenders advertising here and there may be some in your local area.
Hope this helps
Thank you for your help.
PS: Txiki is a nickname that means the the younger, my friends call me that, I’m basque.