Legal Question in Real Estate Law in California

Virtually all REO or foreclosed home sales are taken "as-is," meaning that you are stuck with the condition of the property. What your realtor told you to do may be borderline fraudulent - if you know about the leaky waterheater in advance of buying the property, then it is not covered by the warranty. Irrespective, yes, lenders do inspect the property prior to close of escrow, and yes, if you are getting an FHA loan (which I suspect may be the case), then you have to fix it. The lender will not pay to do it, because you are buying "As-Is." In theory, because you are getting such a good deal on the property, you may have to take the risk of installing a new water heater, or repairing this one pre-close of escrow, and if you don't close, you lose the money you put into the house. Its just the way it is with foreclosures. Your realtor should at least make the demand of the bank owner that they fix it and get reimbursed out of close of escrow.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.