FHA question

[Anonymous]

We're selling a house and the buyer is getting a FHA loan. Closing was supposed to be tomorrow. We were initially told they had waived the inspection and were doing their own inspection. We got a list of items based on their inspection and repaired those items. We found out today that the FHA inspector came out yesterday and wants the steps on the front of our house (steep front yard - steps from sidewalk to front door, pavers dug into soil) cemented in. This would put repair costs above the $500 in the contract given the repairs already made based on their inspection. Who is responsible for fixing that for the sale to go through? Do we have to fix it before FHA approves it, even though it is above the responsibility outlined in the contract or do they have to fix it? The other option would be to remove the steps, I suppose, and put dirt and sod over them.

If anyone can point me in the right direction to answer this, I'd be very grateful.

Thanks!

[cseddio]

Hi Jess

I'm in the middle negotiating repairs with a seller right now myself and may find myself in a similar situation.  Basically there are some items which the seller refuses to repair but I'm pretty sure they are going to come up on the FHA appraisal.

According to my lawyer anything that comes up that is required by the lender to be repaired is going to have to be fixed before closing or you're not going to close the loan.  The burden of the repairs is not on the seller or the buyer and so you must go back to renegotiating if you want to get the sale done.

Good luck to you

[DallasLoanGuy]

this is negotiable.

offer to split it and get the deal done.

it may come up again if you start over with a new buyer