Certificate of Occupancy - Westland foreclosures

When you buy a Westland foreclosure you are going to need a certificate of occupancy. In the real estate business we call it a C of O. A C of O allows a new homeowner to occupy their home. The City of Westland (MI) requires a city inspection when the house is sold. The new home owner (or old home owner) must:

• pay the City of Westland an inspection fee
• the City will send over inspector to look at the home
• Westland will give the homeowner a list of corrections to be done
• the city inspectors will come back out to re-inspect the Westland home
• Once all the deficiencies are corrected then Westland will issue a certificate of occupancy
• You can't close on a home at a title company normally without a certificate of occupancy

When you buy Westland foreclosures it is a catch 22 to get a certificate of Occupancy. Banks will not do any repairs for the Metro Detroit home buyer and the home buyer can't do any repairs until the home is theirs. So the title companies have begun to take temporary certificate of occupancy. You can't move into the house but you can close on it.

Sometimes repairs are done on the sly in order to get a mortgage. The banks selling the property won't do the repairs but lenders won't do the mortgage if it doesn't meet appraisal standards. For example FHA loans require:

1. peeling paint to be scraped and painted
2. electrical issues or electrical safety issues

So if there is peeling paint on a Westland foreclosure the home buyer must paint it in order to get their mortgage but the banks won't paint it. So somehow it gets done. ( I think by elves in the night) But nobody complains that the Westland foreclosure closes and the certificate of occupancy eventually gets issued.

Russ Ravary your metro Detroit real estate agent

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