Somewhere in all the pages you signed for the sellers addendum it says that you are buying the property "as is". If you do not want to make the repairs before close you may be able to use a financing contingency to get out of the contract but you need the appraiser to go out and you have to pay for that.
I always try to spot the propblems with a property that a buyer may run into on a FHA loan and we address them upfront as much as possible.
Check with your lender, each lender FHA guidelines vary. See what the minimum requirements are for your FHA loan. Some lenders just require the gas line to be capped and as for the sink you can deposite, 1 1/2 of what it cost to install the missing sink and garbage disposal. Or have your agent submit a request of repairs. Talk to your agent about this, if he has no idea. Talk to his broker to help you guys out.
Jes Sierra, B.Sc.
The position you have been put in is typical of the insanity the banks are foisting on buyers. How the listing agent and the asset manager ever accepted your contract is beyond reason. The only thing I can presume is there was no one else willing to step up on that home.
In any event, the situation must be resolved and the options are very narrow. ASk your lender aboutswitching you into a 203k FHA loan.
While FHA financing does have its standards,....
The people you need to speak with is YOUR Lender.
Let them know of the situation. The sooner the better.
Be careful if you have to do any work on a property that is not yours.
If the deal falls out, you may not be able to take the items back out.
Recently, and Locally, I have done a couple deals whereas there was no STOVE or Microwave in the kitchen and the deals went through and yes they were FHA loans. I am not a Lender.
However I believe the sink might be necessary. Stove and Microwave are appliances.
There are sometimes grey areas on loans.
As for the advice - Elsewhere in this blog - given to replace your agent because of what the seller said, this is not a good idea at all.
Your agent you are working with holds your contract and is trying to help you. If anything ask your agent, perhaps your agent can ask their Broker. It really comes down to the Lender making your loan on the property you intend to purchase.
Does the bank have to replace the items before you move in? NO
The bank holds title and the bank is an entity.
No banker comes out to put your sink and appliances in.
The bank as the seller may choose to have the items put in but they do not have to.
The appraiser for your loan may or may not red flag the deal with the missing sink, and appliances. The appraiser is the eyes for Your lender so that the lender can say ya or nay on the loan, along with policy guidelines by your lender, and federal standards. Usually an FHA appraiser is looking for structure damage, safety issues, and habitability.
If your loan does not fund, then you may end up losing your deposit you gave on the beginning of the deal depending on your contract. This is why you may want to talk this over with your lender the sooner the better. Sometimes you can get out of a contract early without losing your deposit.
All things are not etched in stone. Having a calm cool head and talking things out with your lender, your agent, and having them talk to the Listing agent for the bank is the way to proceed.
I wish you the best in your buying process.
I hope the home you chose is one you will enjoy.