My friend is in the process of buying a fanny mae foreclosure in as-is condition but they are requiring him to do work to the house before they will close on the loan. Is this leagal or is it a requirement with some validity to require work be done to a home that is not even yours?

Anonymous:

but they are requiring him to do work to the house before they will close on the loan.

Who is "they"? It sounds like whoever the lender is has required that certain work be completed before they will close on the loan. I doubt if your friend would be authorized to do any work on the property prior to closing. If Fannie Mae doesn't agree to do the work then it probably will not close.

The key term is "as in condition", which means that Fannie Mae is selling the property "as is" and the purchaser is purchasing the property "as is". Your friend may have a few alternatives if the lender/appraiser has conditions that must be completed prior to closing the transaction; pay cash, obtain a FHA 203KS or FHA 203K rehabilitation loan; or depending on the loan to value, find a private investor willing to finance the property.  Otherwise, as Bryan said, it's doubtful that Fannie Mae would allow any work be done prior to the buyer taking title to the property. These alternatives will be predacated on the  your friends approved purchase contract.  Their Real Estate Agent should be able to clear up any questions.