Having CO necessary?

Question

I am looking for a REO house to live in. I inquired in county and looks like they don't have CO for 2nd floor at all that they have redone/rebuilt 2 yrs ago.

Township does not have Surey! permit is also expired and no CO. Bank wants to close fast and next 5-7 days they want me to sign the contract with 10% down of PP = 375K.

Since as a first time buyer not sure that whether I should be able to get the loan without CO. I discussed this with my lawer and according to her it can take upto 3 months to get CO and survey done. The bank - that owns the house is ready to give me the loan without CO but if I will be late for closing then they will charge me 100/day!...

House is in very good condition with only expenses are appliances, replacing the carpet in 2 bedrooms to hardwood floors and transfer taxes (no back taxes even)...

As said, as a first time home buyer not sure this is the right approach (to buy without CO and related consequncies) and looking for advise here from the investor community. Any help/suggestions appreciated.

Thanks,
Newbie...

Sue In Denver · Answer

Okay, this looks like a pass to me.
Of course the bank wants to unload this junker.  However, if you can't live in the house without a CO, then how can you do an owner occupied?
I'm not sure what your strategy is here.  Is this new construction?  Is the second floor not finished?  If it's not finished, how do you plan to finish it?  Do you have the money to complete construction?
I know we're missing information here but it just doesn't seem like much of a deal unless you have very deep pockets and plan to live in it for a very long time.
Since you're a first home buyer, look for homes that need basic cosmetic work such as paint and carpeting.  Taking on someone's unfinished construction work on a first home can be a HUGE money pit.  And, because you're looking for your first home, be sure to have an inspection done during the due diligence period!
Hope this helps a little bit!

Ash Seth · Answer

Sorry - I meant "Certificate Of Occupancy".

Sue In Denver · Answer

Hi Newbie,
Could you tell us what "CO" is?  I don't know what that stands for so I'd be glad to offer a reply but I'm not sure what your question is at this point until that is translated for us.
Thanks!