Home Buying in 97128>Question Details

Retiree, Home Buyer in Dallas, OR

Four inspections found a drainage problem. Sellers refuse to fix it. Our lender will not approve our loan as is. What can we do?

Asked by Retiree, Dallas, OR Sat May 26, 2012

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If these repairs are conditions on an appraisal, then they have to be fixed in order for the loan to fund. The seller should feel obligated to fix this. They will most likely run in to the same problem with another buyer down the road if they don't.
0 votes Thank Flag Link Sat May 26, 2012
That would make sense that the seller would have the same problem with other buyers in the future. Though it is a mystery as to why they won't get it fixed. Unless they have decided it isn't worth the money to them. Though a drainage problem sounds like a reason to not buy a house in a lot of situations. Who knows how much it could take to get the drain repaired?
http://www.advancedplumbing.ca/drain_cleaning_and_repair.html
Flag Thu Oct 23, 2014
Why four Inspection??

If the seller knew abouth this drainage problem, the seller should feel obligated to fix this. What your Realtor is telling you or advicing you?
1 vote Thank Flag Link Sat Mar 23, 2013
ha ha!
Flag Sat Mar 23, 2013
Outside of completing the repair yourself on a property you don't own, it sounds like it is time to walk and find a new house. The seller is under no obligation to fix it, as we write as-is contracts in Oregon.
1 vote Thank Flag Link Sat May 26, 2012
Yeah, I would leverage the sellers a little. Use the fact that no one's going to buy unless they have a drainage contractor fix it, and be willing to give a little bit. I'm sure they'll come around and have it fixed before long. They might just not realize that it's as big of a deal as it is. http://www.pmurraycontractors.ca/en
0 votes Thank Flag Link Wed Oct 14, 2015
It doesn't make sense that the homeowners won't fix the drainage problems. They will have to do that to be able to sell the home to practically anyone. If they refuse to fix it and that's keeping your loan from going through, you might have to find a different house. I hope they come to their senses and things work out. http://www.pmurraycontractors.ca/en
0 votes Thank Flag Link Thu Apr 23, 2015
If they won't fix a drainage problem or reduce the price to compensate for it, I wouldn't buy the place. Is there a particular reason that you want that house specifically? It's unreasonable for them to not do anything about a problem like that. They will probably have a hard time selling their property if they don't change their minds. http://www.valleyrooterplumbing.com/drainage.html
0 votes Thank Flag Link Wed Mar 18, 2015
It sounds as if your lender has made your decision for you. If they are unwilling to finance without improvements and the seller is not willing to make them. Sounds like it's time to accept things for what they are and continue your search elsewhere.

Sorry,

Bill
0 votes Thank Flag Link Thu Jun 12, 2014
It's not smart for the seller to refuse to fix the problem. Lenders will not approve anyone for a loan if this damage is not taken care of. I would suggest talking with the seller to try and work things out with them. Explain that it will be more difficult for them to sell to anyone if they don't fix the drainage problem.
0 votes Thank Flag Link Thu Jun 12, 2014
I didn't know you couldn't get approved for a loan if problems like this aren't fixed. I agree with your answer then. It's not smart for the sellers to ignore this problem. They need to get it fixed. http://www.budgetdrainage.com/services.html
Flag Tue May 19, 2015
Hi Retiree,

If you want to pay to fix the repairs, ask you lender about setting up a Repair Escrow so you can complete the repairs after you close. This should satisfy the Underwriter's condition so you can fund your loan.

I hope that helps...

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required), HARP 2.0 - No Appraisal Required for Refinance for Underwater Home Values, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
Web Reference: http://www.ezAZloan.com
0 votes Thank Flag Link Sat Mar 23, 2013
The Seller is legally required to disclose the drainage problem to the next Buyers so they'll have to fix it eventually if they want to sell. If they won't cooperate, no matter how perfect the home may be, find another home.
0 votes Thank Flag Link Sat May 26, 2012
Question 1: why were there four inspections? Was the drainage problem not apparent at the first one?
My first effort would be to get a bid or two on the drainage repair if you haven't already. It may not be as expensive as the sellers think. Make sure the sellers know you cannot close the deal without the repair (it's amazing how often we assume what the other side knows and does not know).
Another option might be (if this is THE house for you) to increase the purchase price in the amount of the repair so that the seller gets reimbursed at closing for the repair. The house, of course, will then need to appraise for the increased amount of the sales price. The in-between position is for you to offer half the cost of the fix and see if they will come up with the other half.
If the seller has no cash, see if you can find a contractor who will agree to be paid out of proceeds at closing and then schedule the work for as close to closing as praticable.
You might want to inquire about an FHA 203k loan, which would allow you to close and then repair with money from your loan.
Obviously, if there are lots of other houses that will satisfy you, then you can always walk away.
Pay attention to your inspection deadline, though, so you don't lose your earnest money while you're figuring out what to do!
0 votes Thank Flag Link Sat May 26, 2012
Send the seller a request to repair and send them a termination document and ask them which they want to sign. Hard ball works sometimes, but not always.
0 votes Thank Flag Link Sat May 26, 2012
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