strategic offering on Foreclosures

[Benjamin Haberman]

Offering on a bank owned home for my 2nd flip in NJ. Does anyone have a strategic way on offering to banks to feel them out? Worried this home has a bad septic and want to test it before we are officially under contract. From what I understand, when "Home is being sold as is" is in the contingencies of the contract, there is no way to use the home inspection period to back out. Has anyone ever backed out in Attorney review? On this flip, the numbers work with a good septic. It gets hairy if we have to replace the septic.

Any advice? Thanks in advance.

[Wayne Brooks]

Generally, As Is does not preclude an inspection clause, it simply means they have no obligation to fix anything you find. Most REO's have a standard inspection period. Read the standard purchase agreement, talk to your agent, then read the addendums if your offer is accepted, before you sign them.