U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 11-16-2010, 04:58 PM
 
82 posts, read 194,850 times
Reputation: 37

Advertisements

I realize that requirements and standards by lending companies and FHA are much more strict than they were 2 years ago. With that being said, we were just told by our lender that subsequent to their FHA appraisal of the home, there are several things that have to be done to the house, before we are fully approved and are able to close.

Now, the problem is this. The option period (the period where buyer or seller can essentially walk away - no harm done) is over and we're not sure who is going to pay for the listed requirements. It isn't a huge list, and I can personally do most of it, but of course that takes time and money, albeit not a large sum of cash, but you get the point. We are reluctant to ask for everything to be done by the seller as we have negotiated a good price in a very good area in Dallas, where demand is strong. But, in my opinion, doesn't the lender or our Realtor have an obligation to us, as clients to get the FHA appraisal done PRIOR to the option period expiring? As I see it, if we choose to do/pay for the work ourselves, we're doing so to a home that we don't own. Not to mention, the FHA appraisal was performed 2 days before the scheduled closing. This puts us in a bad spot for several reasons, one (1) being our contract with the Seller ends soon, and two (2) our Interest Rate we already locked in will expire as well, meaning we will need to lock another Rate, which could definitely be higher considering the Market we're in.

If this makes sense, help me out!;-)

Thanks.....

Last edited by ModernHomeNow; 11-16-2010 at 05:07 PM..
Rate this post positively Reply With Quote Quick reply to this message

 
Old 11-16-2010, 06:28 PM
 
79 posts, read 164,972 times
Reputation: 35
Are you buying a REO or Foreclosure? Usually the home not passing inspection will allow you back out of the deal. Have the seller make the repairs and at closing you pay them back if they do not agree then you can back out.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-16-2010, 07:15 PM
 
Location: Dallas/Fort Worth, Texas
4,187 posts, read 14,037,430 times
Reputation: 2644
The option period is a time for you to do the inspections and due dilligence or just change your mind. You don't have to order the appraisal at that time and actually over 98% it is done AFTER the option period because in case things are found during the inspection, you can back out of the contract and not have to incurr the expense of an appraisal.

Your contract has a contingency on lender required repairs even though it is after the option period. The sellers are not required to repair them but you can negotiate that with them.

Flags should have been raised 10 days before closing if the appraisal wasn't done yet and consider a lock extention at that time. Lenders and Realtors do not have the right to speak to the appraiser. It is done electronically. The order is put in and the appraiser doesn't have a time limit to return it but on average a week.

When is your closing scheduled for? After the work is done, the appraiser is very likely going to have to come back to check that it was done. Some do some don't. I've had one accept pictures of the work in order to expedite things.

Naima
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-16-2010, 10:12 PM
 
Location: Plano, TX
488 posts, read 1,319,875 times
Reputation: 399
Appraiser do have a time they have to get their reports finished, it's typically 3 or 4 business days. Often they are order as a "rush" because someone at the mortgage company or the AMC didn't order their appraisal in a timely manner.

An FHA purchase contract should have a contigency for approval of an FHA loan at a maximum of X %. Part of being approved for an FHA loan is that the subject must meet minimum FHA requirements. If it doesn't meet the requirements the home doesn't qualify for an FHA loan and it's up to the seller to fix it.

It sounds like the repairs being required are fairly extensive? A reinspection is likely going to be required.
Rate this post positively Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
Similar Threads
View detailed profiles of:

All times are GMT -6. The time now is 02:33 AM.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top