Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I just took a drive by the house I'm supposed to close on Thursday and saw that the sellers had not had flashing installed on dormer windows and that the "repair" of a fence was laughably bad (to the point that I wouldn't even call it a repair). What happens now? My final walkthrough is tomorrow afternoon. If they can't get the repairs they'd agreed to post-inspection (and they did sign off on the repairs) done by closing time, what are my options?
I just told my realtor, so I imagine I'll hear from her shortly, but I'm curious as to what others might have experienced.
If the repairs are not complete/satisfactory, do not close. Reschedule for a later date. Prepaids for you will be lower as the end of the month comes up and their cash/out of pocket at closing increases. They will want a closing close to the start of the month.
Hold them to the agreed up repairs, and your leverage goes away after closing.
You can either not close and risk your locked interest rate and your loan having to be redone while they charge you for a relock fee, or you can run the numbers in your head and realize the fence repair is probably under $100 and the flashing on the roof is also probably another $100, and do you want to not close for such a small amount of money.
Yes, it's the principle, but it's also reality with money involved.
I'm not sure if it can even go through without the fence repair. That was in the original aos, and the documents I got a couple days ago from the loan processor said that the fence being fixed was one of the conditions of closing. Besides which, I have other things I have to spend those hundred dollar bills on, like a refrigerator and a dryer and numerous little things I didn't bring up since it's a flip. For God's sake, the seller is a real estate agent himself. If he's going to flip a place, he could at least follow the terms he agreed to.
Why would a lender care about a fence? I've never heard of that as a loan requirement.
And again, you need to think of the money. If you decide not to close and terminate the contract, you just lost your inspection money, appraisal money, and any potential appreciation money that your market has increased during the time you've been under contract on this house as you now get to spend that money again on another house.
Yes, he should do the repairs, but if he doesn't, what dollar amount makes you forget about it?
You could ask to have money held in escrow for the repairs at closing. So still close but have the closing company hold back however much money to be put toward the repairs. The sellers will get back whatever remains of that money once the repairs have been made.
Update: the seller swears that the work done on the roof (flashing, caulking, etc) is good, quality work and that the roofer's warranty extends into my purchase of the house. If I can see a contract stating that, I'll be fine with it.
The loan is a PHFA loan. I don't know why it's there, but in the loan commitment document, under the section for requirements to be met prior to closing, fixing the fence is one of them.
Re: the fence. Apparently my agent was talking to the seller (who is also an agent) and he was complaining about all the money he'd put into the house. "The most he's ever had to spend" - new furnace (furnace had a crack in it and there was carbon monoxide) and a new coil for the AC, plus the roof. Waaaah. The dude got the house dirt cheap and is probably making well over $150,000 in profit. Fix the damn fence: it's one 3 or 4 foot section that needs a bit of new fencing and the stretching tool and a little hardware. I have a dog, the dog will get out if the fence is not fixed properly.
My agent says he's going to be over there today cleaning some stuff out of the house. Hopefully he'll send his handyman or contractor over too and just get it done.
There you go - if you have a state bond loan, an extension shouldn't cost you to extend your lock one time. Ask. Your loan officer doesn't get paid if you don't close, so if you don't get the answer you want, call PHFA and ask them the policy on rate lock extensions - you don't have to give a name, tell them you are exploring options. (A state agency, and most government agencies, are very consumer friendly)
Do not close unless you are satisfied with the repairs. Most banks require you to sign a statement that the repairs are to your satisfaction, so do not sign that statement if not true. I don't see a downside if you can secure your lock and I think your chances are good to do that (and rates should be the same or maybe better).
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
