We applied for a conventional loan for a bank owned home. We received the appraisal report stating that the home needs the roof repaired/replaced.

Asked by Carmen Plaja, Connecticut Wed Mar 17, 2010

Can the bank deny the loan if the seller doesn’t repair the roof?

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6
Corey Grushin, Agent, East Brunswick, NJ
Wed Mar 17, 2010
Carmen be prepared that your bank may not want to close hte loan with the escrow for repairs and you may have to flip the loan to one that will allow repairs such as a Homestyle or 203K loan.
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Scott Godzyk, Agent, Manchester, NH
Wed Mar 17, 2010
If it is conventional, it will all be in the wording of how the appraiser states and what they base it on. You may be able to use the appraisal to ask the seller to replace the roof. If it was fha they would definately have to. You will have to wait until teh underwriter reviews it. good luck with working things out
Web Reference:  http://www.ScottSellsNH.com
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Carmen Plaja, Home Buyer, Connecticut
Wed Mar 17, 2010
thank you both for your reply. The appraisal reported stated that the roof is at the end of its life span. We will suggest escrow for repairs.
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Dawn Nostin, Agent, Glastonbury, CT
Wed Mar 17, 2010
Did the home inspection state that the roof needed repair? Depending on the type of loan it could be denied, if the roof is not in need of repair a statement from a roofing company stating the roof is ok could also help. Talk to your realtor and mortgage broker for assistance and good luck.
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Matthew Isle…, , Fairfield County, CT
Wed Mar 17, 2010
It all depends on the wording and the actual condition of the roof. I have seen appraisals were it is mentioned the roof is need of repair and it has not been a problem. If there are leaks and visible damage that is noted then yes the bank may require it be replaced. It all depends on what the appraiser stated. But just the mention that the roof will need to be repaired does not necessarily mean the bank will require that. Hope this helps. If you need anything further feel free to e-mail me.
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Dan Ross, Agent, Southington, CT
Wed Mar 17, 2010
Like any seller, they can do anything they want to. Depending on how long it has been on the market, comparable prices, the strength of the rest of your offer, the listing agent should be able to give you some idea of the likelyhood of them saying yes. If they won't repair or escrow for the repair, possibly you can change from a conventional loan to a 203k streamlined rehab loan. Check with your loan officer.
Web Reference:  http://www.danrossre.com
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