Be cautious in making sure that your Realtor and Lender are familiar with Foreclosures and dealing with Foreclosure Sellers. Sometimes, Sellers of foreclosed properties are uncomfortable signing DPA documents. Additionally, often times, foreclosed properties may be considered “fixer upper” properties which may result in a failed HQS inspection. AHFC requires all failed inspection issues to be repaired or replaced prior to closing the loan transaction. Often times, sellers of foreclosed properties prohibit repairs prior to closing. Finally, all utilities must be on and verifiable as working properly in addition the property being considered readily habitable and safe according to the HQS Inspection criteria in order to pass inspection.