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Stipulation after final approval

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jjeckel
Member

Stipulation after final approval

Yesterday morning I got an email from LO saying we have final approval and telling my attourny to set up closing for Wednesday.  A couple few hours later my attourny answer back with the confirmation for closing Wednesday at 2pm.  A couple hours later my LO sends an email saying we still have a stipulation due to the 2nd appraisal.  There is a post that is rotted on the porch that needs to be replaced before the loan can be funded.  The post is a decorative post and isn't even load bearing.  The house is a foreclosure and the seller is Freddie Mac and we have to hope that they will replace the post so we can get the house.  When we negotiated the selling price of the house we up $5000 to have 5 cracks that need to be fixed.  It later turned out that only 1 of the cracks was structural and had to be fixed, so that is all the seller did.  Due to the wording of the contract that is all they were obligated to do and likely cost less than $2000.  Do you think they will be willing to fix the post?

 

Is this odd to get a stipulation after setting up closing?

Message 1 of 10
9 REPLIES 9
StartingOver10
Moderator Emerita

Re: Stipulation after final approval

Sounds like the lender didn't read each issue listed in the appraisal. Normally all the mandatory repair issues are in the appraisal so that the repairs required can be made and the appraiser can review the repairs.

 

If the post is fixed or removed (because its not structural) than the appraiser has to go back out to check to make sure the work was done. Is there enough time between now and tomorrow to get the work done and have the appraiser re-inspect the work? I don't know. In my area it takes several days to schedule the appraiser reinspection and for the appraiser to actually do the work and report back to the lender. Plus there is a charge for the appraiser to go back out to check the repair.

 

Will Freddie Mac do it? unlikely. I base that on the 5 cracks that you paid extra for and they only fixed one....

Get in touch with your Realtor right away to get this taken care of so you can close. If it's not fixed, you won't be closing.

Message 2 of 10
jjeckel
Member

Re: Stipulation after final approval

The LO claims he can get the appraiser out there tomorrow morning and get the ok to close if the post is fixed today, although I find this highly unlikely to happen.  My guess is it will only cost a couple hundred dollars to replace the post, which would be much less for the seller compared to the cost of keeping the house for a couple more months to sell the house to someone else.  I'm hoping that sways them to just fix it.  This is really frustrating.

Message 3 of 10
HoldingOntoHope
Valued Contributor

Re: Stipulation after final approval

At a cost of only a couple hundred you may want to just pay out of pocket yourself to get it fixed. Consider it a part of your future home maintenance. Anytime you are dealing with a foreclosure it can take a while just to find the person at the bank / agency that has the authority to say yes to a repair order.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

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Message 4 of 10
andydallas1
Established Member

Re: Stipulation after final approval

can you call a handy man to just go fix it,,,by the 'letter of the law' that might not be right, but before lost sleep (and the house) over a $200 repair I would just go get it fixed,,luckily its something they don't need to get in the house for

Message 5 of 10
jjeckel
Member

Re: Stipulation after final approval

Well I got some good news yesterday.  The required repairs have been completed.  Now we just have to wait for the appraiser to go back out to take pictures of the repairs and send them to the underwriter.  Hopefully we will be closing by the end of the week.

Message 6 of 10
StartingOver10
Moderator Emerita

Re: Stipulation after final approval

I hope the appraiser gets out there right away for you so you can close this week. Congrats!

Message 7 of 10
jjeckel
Member

Re: Stipulation after final approval

Talked to my LO today and the appraiser went out there and has already signed offf on the repairs.  He also said the loan has been sent to the closing department and shooting to close on Thursday.

Message 8 of 10
jjeckel
Member

Re: Stipulation after final approval

Finally closed on the house yesterday.

 

Also it's a good thing that I didn't do the repairs myself, because we ran into a little hiccup at closing where my lending bank wanted the receipts to show the repairs were done by the seller and not me, or the loan wasn't going to go through.  Just an FYI for people to think about if they come into a similar situation.

Message 9 of 10
StartingOver10
Moderator Emerita

Re: Stipulation after final approval

Congrats! Smiley Very Happy

Message 10 of 10
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