Agreeing to buying foreclosed house before inspection?

[Sophie Mia]

Hi everyone,

I'm in the process of buying a triplex (foreclosure). It looks like it's in very good condition and should be move-in ready. I will be using FHA Financing.

The problem is that the bank gave me only 10 days to do the inspection. Unfortunately I did not receive the agreement of sale until 2 days later (I guess it took the listing agent some time to send it to my realtor), so I really only had 8 days for the inspection.

The house was winterized, so I had to get a plumber in to de-winterize it and the Gas Works to turn on the utilities...unfortunately there was a mix up and the Gas Works did not turn all utilities on...therefore I had to cancel my inspection which was scheduled for the next day, and had to reschedule both the appointment with the Gas Works & the inspection. Of course this included several days wait time for new appointments.

Long story short, I wasn't able to get the inspection done within 10 days and the bank refuses to give me an extension! What should I do? My 10 days inspection period runs out tomorrow (Friday) and the inspector is not coming until Saturday...So basically I need to agree to this house before I get the inspection done.

My realtor says not to worry, since I am doing FHA financing...if anything is horribly wrong with the house, FHA would not approve it & would not give me a loan. Therefore I would be able to get out of the contract without losing my deposit (since the sales contract is contingent on me getting FHA financing).

What do you guys think? Is his advice correct? The house is looking pretty good, I do not foresee major issues...however, who knows what an inspection will turn up? I'm worried that I will lose my deposit if I need to back out of this contract...

Thanks for the advice!