Repairs and closing - Shane please read

[Anonymous]

So I'm working with my Mortgage Co getting all the paperwork in for closing and everything came back good. They sent the appraiser out, and his report shows value to be in the range we need it in and he saw no repairs that needed to be completed. So I figure we'll be clear to close soon. Well not exactly.

Here's the problem:  I had a minor repair agreement with the sellers that they would replace a downspout that is missing and they reduced the selling price by $500 in order for me to make minor repair to a faucet and for me to have the trees that are touching the roof trimmed back. Now the loan officer is saying that since this is FHA loan, U/W won't accept those concessions, and that the sellers must make the repairs and I have to pay the appraiser to re-inspect the property to make sure the repairs are done, before we can close.  

My question:  Is this normal? I thought buyers and sellers made deals regarding minor, mostly cosmetic repairs all the time.  If I had not asked the sellers for the concession, then there would have been no problem because the appraiser saw no needed repairs. The big problem for me is that the contract price is already $8,000 less than the sellers asking price, and they live in another state already and they are apparently unwilling to complete the repairs. Is there anything I can do to get the mortgage co to back off on this requirement, or am I out of luck?

[Anonymous]

We ran into a similiar situation and we had to make the repairs ourselves (under the table) and then have re-inspect.  Once you bring any issue (leaky sink was exactly what we had) to the UW/FHA attention, it can be hard to get those items removed.  We had to pay for the repairs ourselves (seller would not) and pay for the re-inspect.  FHA is also weird about concession and how they are applied.  Is the seller paying your closing costs already.  I now their is a limit on how much.

One option is (if you ar a handyman) is to ask the seller's realtor permission to enter the premises and fix the sink and trim trees yourself.  They may say yes and they may say no.  It can not hurt to ask.  At least it should not be an expensive repair.  Then once done, you can ask for a re-inspect.  The re-inspect is not near as expensive as the original inspection (at least in our case).  400 verse 85 I think.

I am curious how this works out.

[Anonymous]

The sellers are not paying anything on my closing costs.  What really gets me about the whole thing is that we signed the contract on 8/31, and since they live in another state due to job relo, they are no doubt paying mortgages in 2 places.  It would seem that they would want to do what is necessary to make this deal happen and not have to start all over again with another buyer.

I'm not a huge handyman, but I could probably make those repairs myself pretty easily.  Thanks for that angle, I had not previously considered that.  I will advise what happens after I speak with my agent.

Message Edited by rbh on 09-29-2009 03:52 PM

[DallasLoanGuy]

have THEM get the repairs done and bill submitted to title company for payment at settlement if they are too cheap to part with $500