Possible seller credit for a septic at closing?

Asked by JxyJ, Basking Ridge, NJ Mon Mar 4, 2013

1. Purchasing a house in Somerset County with a septic that failed. Mtg will be 30 yr fixed.
2. Both myself and the seller had a feeling this would happen, given the age of the system. The seller will remediate.

**My issue- septic can take 3 months to finish (permits, tests, design, installation etc.) and my rate lock will NOT last that long. Just trying to see if there is a way to close and have the seller give me a credit for the septic. This seems to be a sticking point as I understand that any credits need to appear on the HUD and the price of the septic will probably be 30-40k. Our attorneys are communicating, but I thought it was worth posting here since maybe someone had a similar issue and there is a solution that we haven't thought of.

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John Sacktig, Agent, New Jersey, NJ
Mon Mar 4, 2013
I had a similar issue and the seller contacted and company for the service and paid for it themselves- the seller paid in advance.
1 vote
Elisa Dewees, Agent, Cherry Hill, NJ
Tue Mar 5, 2013
Lenders will not allow you to close without a passed septic system. Many local municipalities will not allow the home to be sold without the septic passing. I do not know why it would take 3 months, I've seen them done in as little as 3-4 weeks. If a contractor who does the design and installation is hired, they can usually expedite the process. Hand delivering the plans for approval to the township officials also helps expedite.
0 votes
Russ Ravary, Agent, Commerce Township, MI
Mon Mar 4, 2013
Can you do a 203k loan? That might be the answer
0 votes
Maria Gilda…, Agent, Manchester, CT
Mon Mar 4, 2013
Please check with your loan officer. I am not sure if the lender will allow you to close with a falied septic. Based on my experience, it has to be done prior to closing.

Best of Luck.

0 votes
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