I'm trying to buy a HUD house. I only need the final bank approve, but having a problem with the water.

Asked by xeeker, North Royalton, OH Wed Mar 20, 2013

I have been dealing with the house from hell. I'm ready to close, just need the final appraisal by the bank. The property management company got the water turned on yesterday and was de-winterizing today. However they found a leak. (They contacted the selling agent with the info, which has not yet been relayed to me.) Its a catch 22...I can't get the appraisal without the water, and no one will fix the problem. Anyone have any thoughts?

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
Maria Gilda Racelis’ answer
Maria Gilda…, Agent, Manchester, CT
Thu Mar 21, 2013
Hello Xeeker,

My buyer who won a HUD bid has almost similar dilemma. When I received the package from HUD, I called the property management company to de-winterize the property. Their answer was specific. They can't turn the water on. Therefore, they will not dewinterize it.

My buyer has a applied for conventional loan. In this scenario, I know that the bank will not lend the money unless all utilities are on.

Hence, I asked the buyer to apply for a 203k Loan right away as this is the only way we can close on a property in this situation. However, be aware that there is a minimum amount that the lender will loan you for the 203K. You have to discuss this with your loan officer.

Since, some repairs are needed, we can easily accomplish the minimum amount required for the 203K, We got estimates for the works such as roof , plumbing and heating and then submitted them to the loan officer.


We asked HUD for an addendum to change Financing Type from conventional to 203K.

Everything else is good to go.

Best of luck to you.
0 votes
Dan Novotny, Agent, Perrysburg, OH
Wed Mar 20, 2013
I have dealt with this before. See if your lender will allow you to get an estimate and escrow the funds for the repair after closing. I would talk to your lender to see what your options are.
0 votes
xeeker, Home Buyer, North Royalton, OH
Wed Mar 20, 2013
Also, if it matters, this was all found when the house was being de-winterized. The lines were pressure tested, and tested fine before it was winterized.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more