I was just curious about what would happen if a vacant REO property is vandelized after going into escrow. Would you be able to get out of buying it… Would the bank’s insurance policy pay for repairs before closing?
Hasn’t happened to me…but with so many vacant properties out there I wonder. How often do banks usually check up on their REO listings?
This is why it is imperative that you always do a final walkthrough the day of the closing. Until you close it isn’t your problem.
the banks insurance would pay. But only if you refused to close until it is fixed or the price was adjusted for the damage. Banks sell as is . They usually count on Realtors to check on properties and keep the home secure. The Realtors do not do a very good job of this either,thats why the phrase buyer beware.
redhawk