Repairs after closing

Asked by Marcela Nunez, Dallas, TX Thu Jan 26, 2012

I have a buyer willing to pay for a repair that is a condition on a loan. The seller agreed to repair all except this. Is there a way buyer can put additional escrow money towards the repair? Would a lender approve something like this? If so, I am assuming I would need an amendment and lender�´s approval?

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6
Terri Vellios, Agent, Campbell, CA
Thu Jan 26, 2012
Contact your buyer's lender. They are the ones who condition the loan. Ask if it is ok to hold money in escrow to have the work done after close Another option of having the seller make the repairs prior to close at the buyer expense.

All the best toy you and your buyer.
Web Reference:  http://www.terrivellios.com
0 votes
Trish Barnett, Agent, Florence, AL
Thu Jan 26, 2012
If this is the only remaining condition of the loan, have the work completed and the buyer pay for it at closing. Make sure all other conditions of the contract have been met first to prevent any issues should the deal not close. Also, seller needs to understand that if the repair is lender required for this loan, it's most likely going to be required for the next buyer's loan as well.
0 votes
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Thu Jan 26, 2012
It would depend on a variety of factors. Some would be the lender's policy on escrow holdbacks, the loan program guidelines, the type of repair, and the dollar amount of the repair.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing
Web Reference:  http://www.rodneymason.com
0 votes
Voices Member, , Swartswood, NJ
Thu Jan 26, 2012
First, what works in one State, possibly will not work in another due to the laws, etc. However, why can't the Buyer find a contractor to preform the work and the contractor send a invoice for work rendered to be paid from the closing process. If the loan does not cover the extra cost/s, the Buyer pays for the work at closing.

Ron
Weichert Realtors(R) 1st Choice
Montgomery, Alabama
0 votes
Hat Lady, Agent, Montgomery, AL
Thu Jan 26, 2012
We have at least two lenders here in Montgomery AL who are willing to do a post-close repair escrow. Usually is limited to $5,000 or less and cannot involve anything to do with structural integrity. Let me know if you need lender referral(s).

Sandra Nickel
0 votes
Dale Jones, Agent, Elkton, MD
Thu Jan 26, 2012
I have personally been involved with a settlement where the contractor provided a written contract, the lender and the settlement company agreed to create an escrow account
0 votes
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