The Buyers want to Buy and the Seller wants to Sell Why isn't this Working!
Today my niece called me to ask for help or advice. She and her new husband went under contract in Mid-December to purchase a foreclosure. They were pre-approved and the property didn't need more work than they felt that they could handle. Financing was going to be FHA.
When the Appraiser sent in his report, he had a few repairs that needed to be done to meet FHA guidelines. Some rotted wood around a window and loose exposed wires where a light fixture used to be. No big deal right?
Her lender said that the repairs had to be done before closing. The Foreclosure bank said that the house was being sold "as is". We understand that. But when the Buyers wanted to make the repairs themselves, the Foreclosure Bank said "NO". Too much liability for the bank.
Neither agent wants to, or is able to, come up with a solution. The closing is supposed to be next week. I suggested escrowing the monies and then doing the repairs after closing, take pictures of the repairs and send them to the lender.
Lender said that the type of loan that they were getting wouldn't qualify. Now what do you do?
Everyone loses here. Buyer can't close and lose the home they want to buy. The property is being sold for about $135,000 and the next buyer is more than likely going to go FHA too. The same problem will occur over and over. So the bank keeps lowering the price to get it sold. They lose.
Neither agent gets paid next week, they lose.
What's wrong with this picture?