Home Selling in Northborough>Question Details

brs42523, Home Buyer in Northborough, MA

Agent told me home was FHA approved. paid for home inspection found out it actually wasn't so deal off. Should agent reimburse me since?

Asked by brs42523, Northborough, MA Fri Mar 8, 2013


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You can certainly ask the agent for reimbursement. If he/she refuses to reimburse, you could consult with an attorney, but the expense could be more than what you're trying to recomver.
0 votes Thank Flag Link Wed Dec 18, 2013
I am assuming you are referring to a Townhouse/Condo correct? Other than those types of homes, there is NO home that is not FHA Approved. Meaning if there is an issue with a home i.e. chipping paint, exposed concrete rather than floor covering, unsafe electrical connections, unpermitted garages etc. These deficiencies can be corrected or worked around. Whereas a Non-HUD Approved Condo Project is truly "Not FHA Approved". In that case, your Agent should have known that community was not on the approved list: https://entp.hud.gov/idapp/html/condlook.cfm
If I was a consumer under these circumstances, I would contact the agent and request a reimbursement and if that fails, contact his Broker. If that fails, well I guess you have learned a very valuable lesson.
0 votes Thank Flag Link Fri Mar 8, 2013
Most often it's the inspection that will bring out whether FHA or other lenders (according to their criteria) will lend on a property. Usually an inspection is money out of the buyer's pocket whether or not the sale goes through. In your case, better knowing ahead of time that something is seriously wrong with the property than find out later. Perhaps your mortage lender should have made you aware of some of FHA's criteria.
0 votes Thank Flag Link Fri Mar 8, 2013
Hard to get money out of someone who doesn't have it. Agents are paid only after the sale takes place. Until then they have not made a cent. Scott gave you an especially good answer; actually everyone did.
0 votes Thank Flag Link Fri Mar 8, 2013
Do you have written documentation from agent stating the home was FHA approved? If not, it may be a tough to force the issue. When it comes to real estate agents/brokers, believe only half of what you see and none of what you hear. This philosophy will serve you well.
0 votes Thank Flag Link Fri Mar 8, 2013
Many properties were FHA approved and withiout notice are now not. many still show up as approved on lists agents use. The key is checking with your lender and asking them before going through formal approval. The loan officer should be checking this before taking your application fee or appraisal fees. They have a direct link to under writers and bankers that have the up to date info. In addition many condos that were taken off teh list, can easily be put back on teh list by simply going through teh fha application process again, it could take a month though...
0 votes Thank Flag Link Fri Mar 8, 2013
Have you tried other financing methods? Mass Housing has a program very similar to FHA for condos/townhouses. Let me know if you need a contact.
0 votes Thank Flag Link Fri Mar 8, 2013
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