Home with water basement problem, bank won't loan money to buyers,how do you work past this?

Asked by jojoplaydoh, Akron, OH Mon Jul 22, 2013

Help the community by answering this question:

+ web reference
Web reference:

Answers

5
Franz Bauer, , Arlington, VA
Tue Jul 23, 2013
Agree with James. If there is ANY evidence of Mold, you will typically need to get Mold Testing done. If evidence of Mold is present, then Mold Mitigation would be required. This needs to be done by a licensed/ certified professional and can get costly. However, those costs can also be included within the 203(k).
0 votes
James Deskins, Agent, Worthington, OH
Mon Jul 22, 2013
If the water stays there the buyer will probably not be able to get a loan. Franz mentioned a 203K which is a possibility. However, banks are very leery of a house that has water in the basement. That can lead to mold and banks are deathly afraid of anything having to do with mold.
0 votes
Ken Woods, Agent, Stow, OH
Mon Jul 22, 2013
Before I can give you advise you on something like this, I would like to know if you are the seller, buyer or agent asking this question, because the answer could be different based upon representation.
Ken Woods Realtor 330-777-0075
KenWoods@KWRealty.com
0 votes
James Gordon…, Agent, Hamilton, OH
Mon Jul 22, 2013
Seller fixes the problem so that they can become a seller instead of a could have been seller. Sometimes the buyer may be able to contribute to repairs, some times.
0 votes
Franz Bauer, , Arlington, VA
Mon Jul 22, 2013
There are 2 ways: 1) The seller waterproofs the basement before closing, and the repairs are verified and inspected by the appraiser.

2) You can get an FHA 203 (k) loan which allows for the purchase and repairs as one loan. So if you are buying the house for $150,000 and the waterproofing requires $15,000 in repairs, then you would need your 3.5% down of the $165,000 total, and the $15,000 is set aside for the waterproofing.

In these cases, the purchase price is often renegotiated to take the repairs into account.

Contact me with any questions.

Franz
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more