Real Estate and Home Mortgages - Options for home expensive repairs on pending house sale.
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scarywoody
03-03-08, 01:59 PM
Situation:
House has offer
Inspection called for new roof and a lot of the siding to be replaced...as well as a few other odds and ends.
I don't have the cash on hand.
Buyers have FHA loan, so I think a lot of these items I will be required to repair before close.
Have equity avaliable.
Is my best option to get an equity loan for repairs if I have to pay for them? Are there other options? I don't want to put off the buyer by dragging out repairs.
thanks
House has offer
Inspection called for new roof and a lot of the siding to be replaced...as well as a few other odds and ends.
I don't have the cash on hand.
Buyers have FHA loan, so I think a lot of these items I will be required to repair before close.
Have equity avaliable.
Is my best option to get an equity loan for repairs if I have to pay for them? Are there other options? I don't want to put off the buyer by dragging out repairs.
thanks
joed
03-03-08, 05:37 PM
Offer the buyer a discount to take it as is.
nap
03-03-08, 05:56 PM
that's not typically an option with FHA mortgages.FHA generally requires the repairs to be done before closing.
scarywoody
03-03-08, 06:41 PM
that's not typically an option with FHA mortgages.FHA generally requires the repairs to be done before closing.
Exactly. I was wondering if there is any way around that. I was thinking maybe at close if we cut checks to all the contractors to do the repairs maybe that would be satisfactory. I dunno I guess we'll get the repair addendum tomorrow and go from there.
Exactly. I was wondering if there is any way around that. I was thinking maybe at close if we cut checks to all the contractors to do the repairs maybe that would be satisfactory. I dunno I guess we'll get the repair addendum tomorrow and go from there.
nap
03-03-08, 08:58 PM
actually I was responding to the poster just above my post letting him know.
but anyway, it has been too long since I sold real estate and do not really remember if there was a work around. If you are using a real estate agent, they should know if there is something that can be done, such as escrowing the repair costs or something else.
but anyway, it has been too long since I sold real estate and do not really remember if there was a work around. If you are using a real estate agent, they should know if there is something that can be done, such as escrowing the repair costs or something else.
DIYaddict
03-04-08, 01:20 PM
nap is right. If you agreed to pay for any repairs, escrow it. ;) Completely NEW roof? Must be bad. :( Escrowing the repairs means the bill goes to escrow and when you close, they pay that bill out of your profit. Just another bill to pay through escrow.
You may want to find out what the Lender is going to require specifically. Actually, your real estate agent (if you have one) should be doing this.
FYI, all the repairs has to be done prior to close.
Find out what can be done, how long it will take, wait for almost time to close and that the buyers are pretty much out the door and THEN proceed. Don't want to see you put so much money into fixing the house and then never close escrow.
On FHA loans, "cosmetic" repairs don't have to be fixed. That's why I say to find out "specific" requirements from the Lender.
You may want to find out what the Lender is going to require specifically. Actually, your real estate agent (if you have one) should be doing this.
FYI, all the repairs has to be done prior to close.
Find out what can be done, how long it will take, wait for almost time to close and that the buyers are pretty much out the door and THEN proceed. Don't want to see you put so much money into fixing the house and then never close escrow.
On FHA loans, "cosmetic" repairs don't have to be fixed. That's why I say to find out "specific" requirements from the Lender.