Home Buying in New Jersey>Question Details

Waterlu3, Home Buyer in New Jersey

House with cesspool and mortgage

Asked by Waterlu3, New Jersey Sun Jul 26, 2009

I am being told by my Mortgage lender that I Cannot get mortgage for a house with a cesspool. The cesspool was checked and it is not leaking and has not splillage. All water works in the house. Can anyone help and tell me how I can get a mortgage, I have been approved so that's not a problem. If this fact is true how is anyone suppose to sell a house in the country? The former owner of this home is deceased and has now gone to the bank. So no one will put in a septic. I plan to upon purchase of the home. Any advice is much appreciated.

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Hi Bill,
That will be my next step on MOnday if I can't find a standard mortgage. Give the bank a larger bid and see if they will give me the mortgage or loan me the rest of the amount needed. I'm even willing to put money in escrow toward a new septic system if needed but only if I gurantee that the house is mine. I was told by my mortgage lender that I could put in a septic system and that get a mortgage. But who would be crazy enough to spend $ 20,000 dollars on a house that is not theres.
0 votes Thank Flag Link Sun Jul 26, 2009
Will the bank that has the property consider loaning you an amount to cover the difference?.....they understand the issue at hand. This may also hel you get your foot in the door ahead of the other buyer.
0 votes Thank Flag Link Sun Jul 26, 2009
Hi Bill,
Its funny because I did make a cash offer on the property. After sending them financial information showing that I can make a cash offer the next day they said there was another bid on the property, this after 2 months of waiting on there response. So they are now asking for a bigger offer. So my question is can I find a mortgae on this property? There are many homes in Warren County NJ that have cesspools, how are these people suppose to be able to sell if they can't afford putting in a new septic?
If I can't get a mortgage I'm assuming the new bidders will not be able to either they just do not know this yet. So I either sit and wait until they find out or see if they have a larger cash offer than I do. In these economic times I'm just hoping that they cannot come up with that large of a cash deposit like I can.
0 votes Thank Flag Link Sun Jul 26, 2009

It appears that not only do you have a problem...but, the bank has an even bigger one because every prospective buyer that is not doing a "cash deal" will encounter the same difficulty.

Our recommendation is to take this issue bacj to the bank for them to provide a solution. You represent their salvation, for them to be able to step outside of this problem....it's a matter of them understanding the importance of being able to be "creative" to resolve a solvable problem.

Best wishes,
The Eckelr Team
0 votes Thank Flag Link Sun Jul 26, 2009
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