Home Buying in Milford>Question Details

chrissyk66, Home Buyer in Milford, MA

Do we have to buy the house if there are major problems we can't afford?

Asked by chrissyk66, Milford, MA Fri Oct 25, 2013

There were small things pointed out like chipping cieling paint, window pane to be replaced and a broken toilet handle. We are fine fixing these things. We signed a purchase and sale agreement without a clause about seller covering stuff found in the inspection because he took money off the sales price for that. We know the roof needs to be replaced. If she puts that that has to be done before the closing we won't be able to afford it. Are we stuck in a position now where we have to buy the house? We have an FHA loan and we didn't think those minor things would be such an issue. Now we have to pay an additional $200 to have her come back before the closing to make sure we fixed the stuff in the report. We are very nervous because it is an old house built in 1880 that we planned on fixing up over the years. What if she comes back with a TON of requirements that we just simply can't afford!?!

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Sounds as if you are talking about the appraiser coming back. Most likely, she will be looking to see if what was put in the initial report was completed. If not, the bank wont give you the loan and there should be a clause in the purchase and sale agreement that if you don't get your mortgage by a certain date that all your deposits are refunded. I am not a mortgage person, but there is also an FHA rehab loan that the bank may lend you money to make some repairs up to a certain point. May be too late for that now and I wouldn't bring it up to your current mortgage company at this time. If the loan fails, the lender may suggest it or you can back out if written in the purchase and sale agreement. I hope you at least have an attorney if no buyer agent.. Good Luck and hope it works out for you.
0 votes Thank Flag Link Fri Oct 25, 2013
And I apolgize, for some reason on my computer the whole scenario wasn't there - just the question. Linda is correct, review the p&s and if an appraisal is finding those issues, imagine what a home inspector may find. I would suggest you do that if you do decide to proceed. I work closely with a few home inspectors and would be happy to give you their info.
0 votes Thank Flag Link Fri Oct 25, 2013
Did he disclose all of the issues? If not- then you can back out due to the issues. Plus if the appraiser brought it up, I am thinking this will be an issue with the bank where they may not allow for financing. Feel free to contact me if you do choose to move on and would like to work with a buyers agent. It is a free service to you as the buyer. Thank you!
0 votes Thank Flag Link Fri Oct 25, 2013
Like I said earlier-- you should be ok with appraisal. They should not look foranything new. Just need to be sure what was put in purchase and sales agreement is satisfied. If more problems should arise, there should be a clause in purchase agreement giving you ability to cancel your deal if you cannot get financing.
0 votes Thank Flag Link Fri Oct 25, 2013
There is that clause thank you!
Flag Fri Oct 25, 2013
There is that clause. Thank you!
Flag Fri Oct 25, 2013
It was the bank appraiser. We will have I see if she puts anything else in the report I guess. We don't have an agent. THe owner is selling it to us. He owns it outright and is selling it as is and woul nt work with us on repairs.
0 votes Thank Flag Link Fri Oct 25, 2013
Chrissy. You must be referring to the bank appraiser. Since you are going fha the appraisal is a lot tighter. You can purchase an older home in good condition. Is the selller helping to make some repairs? If the roof was not mentioned the first time- you should be ok. The reappraisal is just to make sure the repairs have been done. Good luck!
Web Reference: http://www.lindabuckley.net
0 votes Thank Flag Link Fri Oct 25, 2013
You do not have to buy the home in most cases. Have you already put in an offer with an agent? In the offer it should have a clause saying that if there are issues over a certain amount that you would be able to leave the deal and also get the money you have deposited back. Let me know if you would like some help, I was named 2012 Agent of the Year in my office. ambercadorette@gmail.com
0 votes Thank Flag Link Fri Oct 25, 2013
I'm sorry I forgot to mention it was the appraiser that pointed these things out to us.
0 votes Thank Flag Link Fri Oct 25, 2013
Whose appraiser was it? I am guessing yours from the bank? Did you have a home inspection? Feel free to email me direct ambercadorette@gmail.com
Flag Fri Oct 25, 2013
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