Home Buying in Locust Valley>Question Details

Brian, Home Buyer in New York, NY

Asking for a roof credit while in contract

Asked by Brian, New York, NY Tue May 17, 2011


I am in contract on a house. The bank does not like that tghe roof only has 1 year of life left and is not pushing the mortgage through because of this. I would like to ask the seller for a credit now so I can put the money into escrow and satisfy the bank. If I dont get the mortgage the seller is going to have the same probolem with anyone trying to purchase the house. Do I have my attorney do this or my realtor?


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Talk to both your realtor and attorney. If another buyer comes to the house with the same type of mortage, they will have the same concerns. You made an offer and contract on the house with the knowledge of the condition of the roof. Now the bank is stating a concern. A reasonable solution would be a shared cost in replacing the roof. The seller will close on the property and you will have the use of the new roof during your ownership of the house. If it was in poor condition at the time of the home inspection, you may have already thought about replacing the roof after you close on the home. That expense can be shared so it is a fair deal for both you and the seller. This is why it is important to have a good agent working with you in the transaction.
0 votes Thank Flag Link Thu Dec 22, 2011
Thanks for the responses. We knew the roof needed to be repaired and have the money to do it. However the bank will not approve a mortgage due to the condition of the roof. We did not know this was going to happen. They want 1.5 times the cost of the roof in escrow whichwe do not have, we only have the cost of the roof. If anyone tries to buy this house the banks are going to do the exact same thing so I am not sure the seller has a choice. Either they give me a credit or they do the roof themseleves.

We did get a seperate roof insepction after the bank required it.
0 votes Thank Flag Link Tue May 17, 2011
I agree with Scott. Unless the roof is actually failing, it is hard to get a credit.

The flip side of this is that most contracts state that the seller has to assist with requirements from the bank. If the bank is requiring the roof to be replaced, then you can go to the seller and request it. They may refuse and then you will have to escrow money for the roof to satisfy the bank.

You may look to get a second or third opinion on the roof to help make a more conclusive argument.
0 votes Thank Flag Link Tue May 17, 2011
Brian your buyer broker should be assisting you with this. They can wrote an addendum asking for the credit, you need to include pictures and your report showing the roof has failed. I will tell you from expereince if the home inspector is only guessing the roof has an estimated life that the seller is less likely to make an adjustment or credit unless it is failed and or there is a leak. You should have been able to see the roof from teh ground and seen signs of it failing such as discolorization or shingles peeling up and included this fact in your initial offer, sellers do not like to renegotiate after they accept an offer, the time for negotiations is with your initial offer. At this point the more proof you have the better, get a couple of estimates to submit as well. good luck in working things out
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue May 17, 2011
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