The borrower benefits because the Lender agrees to waive its rights to a personal deficiency.

From what I understand, if a house sells for less than what is owed, then the bank or lender goes into deficiency and has to choose to pursue the original owner for the difference still owed.

If you're not going to have a contractor or building official involved then I would leave it to the property manager to point out obvious code deficiencies especially concerning safety issues like fire / smoke / CO detectors or railing height issues.

There is a potential rule where, if the buyer turns around and SELLS it back to the defaulted party, the lender may have a claim to go back after the previous owner and reinstate a lien, but nothing about renting it back to them and, I've only seen that happen in short sales, never in a foreclosure sale.Heck, for that matter, the borrower can be the buyer at their own foreclosure sale if they want, and if its in California or any other anti deficiency state, they get the benefit of buying it back for less than what's owed.

@Jingwen Dunford Did you present him with a written addendum to the PA with the new conditions/terms you wanted for whatever deficiency you have discovered?

The home inspector says something verbally to the effect of " there might be an oil leak here in the tank, but probably just surface rust, no big deal it is common" and then the home burns down a month later because of an oil leak.I think this is something that most inspectors fear and the result is a report filled with deficiencies that are often insignificant, like minor surface rust on the exterior of a service panel.

And the other side of the coin, if you dont buy a great deal and things go wrong and you end up getting foreclosed on the lender can seek a deficiency judgement against you.

If not during due diligence you should be getting a (PCR) property condition report outlining potential deficiencies and items of correction needed.Look at location of Dollar General with traffic counts, sight lines, access, population growth levels, income levels, crime reports, school systems, economic development department plans for the area, etc.If building is obsolete but rents are really low per sq ft and sitting on a nice piece of land then might have some upside in redevelopment in the future at higher rents.

Sometimes, they'll provide a ROM budget if the repair scope isn't too complex.I ended up purchasing with known structural deficiencies (it wasn't much in the grand scheme) and peace of mind.

Deficient work?