Real Estate Deal Analysis & Advice
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Updated over 12 years ago on . Most recent reply
![Benjamin K.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/54004/1621411983-avatar-ben_l_king.jpg?twic=v1/output=image/cover=128x128&v=2)
Lender Required Repairs
Good evening fellow Biggerpocketeers. I currently have a REO property under contract (Conventional financing). The inspection report came back recommending a structuural inspection due to foundation issues. I got a contractor quote for approximately $6000 to repair the foundation. Submitted bid from contractor to bank asset manager to negotiate the sales price down due to this issue and they countered back stating they wanted a letter from the lender stating that the foundation repair would be a lender required repair. What should be my next move? Wait on appraisal and hope they bring up the same issues as the inspection report? Should I provide the inspection report to the mortgage underwriters now for documentation purposes? What to do?
Most Popular Reply
![Ned Carey's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/6125/1621347669-avatar-ncarey.jpg?twic=v1/output=image/crop=1234x1234@96x0/cover=128x128&v=2)
An appraiser is not an engineer. He may not notice the foundation.
Many if not most lenders will turn down a loan if the property has structural issues. If you bring it up to the lender they will probably say they want it repaired. Also in many states once a latent defect is know to the seller (the bank is now on notice) they have to disclose it to any other buyer. This could be a key negotiating point.