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Seller refuses to do FHA required repair/suppose to close on friday

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We purchasing a house from the original owner. She is 80 yrs old. has had the house since 1950. We orinaglly were to have a conventional loan but score droped and we had to go fha. The appraisal came back and said she needed to paint the outside foundation because of possible lead peaint or something. Well when i found out i tild my realtor a week ago that I would come to paint it on sunday my self because she is 80. My realtor said no she is making enough from the sale to pay someone. Well i was informed today that the seller said she will not make the repair and we are responsible since we switched from conventional to fha. I dont she fha will let the loan go through without the repair being done prior to settlement *am I correct* i am pissed and scared cause I have no time to go paint the dang hosue now because I have to prep my own house for sale on friday also. *im selling then buying same day* What do I do? What can be done? Cna she really out right refuse? She was 80% packed when i last was at the house 2 weeks ago. Would she really play hard ball like this and walk away with less than a week to go?

 

 

 

HELP ME PLEASE!!!!!!

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OMG,

 

Well first just calm down and take a deep breath. Did your agent try to talk some sense into the orignial owner? I can't see someone letting a deal fall though at this point just to avoid painting!! Is there anyway you can have a friend help you paint it?

 

Sorry this is happening to you. I hope that it works out in the end.((((hugs))))

Edited by ladydamba

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OMG,

 

Well first just calm down and take a deep breath. Did your agent try to talk some sense into the orignial owner? I can't see someone letting a deal fall though at this point just to avoid painting!! Is there anyway you can have a friend help you paint it?

 

Sorry this is happening to you. I hope that it works out in the end.((((hugs))))

 

 

LOL I am over here doing my breathing exercises like im in lamaz (sp) classes.

I feel like im giving birth to a big ole head ache!

I'm getting a little annoyed...I have now called my agent 3x no answer..Maybe shes busy. I am pissed because i offered to paint on sunday and the sellers realtor advised my agent on saturday that she would not do the painting and Im just being told now.

I am worn out...i started looking on realtor.com for other houses to occupy my mind...ofcouse nothing is on the market better than the house i am supposed to be buying...I am just pissed and all i can do is sit here and try not to hyperventilate!

 

Oh thanks for the hug...I need a drink and I havent had lunch yet.

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Things like this can get blown out of proportion pretty quickly in a real estate deal. When I was a broker, I had an agent sell a house that almost went to litigation over a towel bar that was removed from a bathroom. :wub:

 

If your realtor is not getting back to you, contact their broker. In todays real estate market, everyone needs to go all out to get a deal closed, IMO.

 

Good luck, I am sure it will get worked out. I am sure the realtors do not want to lose a commission overe this little item either.

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I just talked to my realtor and told her to tell him that this is an FHA guideline rule that we will now own the house prior to friday and we should not have to do this *i simply dont have the time at this point, i cant take off from work and would not get to the property until after 6pm*

She said she spoke with her broker and he said that a request like this is not uncommon and he is aware of a couple redoing an entire basement prior to settlement in order to get a house. I am just pissed and i need to know if I have a leg to stand on.

We did check option 2 stating that we would not walk away from the deal for any repairs over 3500.00 which was the number we were comfortable with.

Are we really gonna have to paint this? it may have to be by candle light cause God knows im burning the candle at both ends.

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Checking Option 2 puts a whole new slant on things. Unless it would cost you more than $3500 to make the necessary repairs (i.e. do the painting), you are obligated to correct this issue yourself. If you do not and walk away, you will be in breach of the contract and the seller will be entitled to keep your hand money.

 

Doug

 

P.S. Your Realtor seems to have made some mistakes here. As soon as the peeling paint issue came to light she should have starting digging to see if the repair would cost more or less than the $3500 you pledged to fix, to see where you stood. If it was less, she never should have told the seller it was something they had to fix. Even then, I like you would have considered the fact that the seller is 80, and asked the listing agent if the seller could do this herself, i.e. if she had friends/relatives who could help. If not I would have jumped on your offer to do it yourself and arranged for that to happen when you had time.

IMHO, if you do end up painting by candlelight your Realtor should be the one holding the candle.

Edited by Doug the Realtor

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Checking Option 2 puts a whole new slant on things. Unless it would cost you more than $3500 to make the necessary repairs (i.e. do the painting), you are obligated to correct this issue yourself. If you do not and walk away, you will be in breach of the contract and the seller will be entitled to keep your hand money.

 

Doug

 

 

Whelp now that you put it that way....Do you have any candles...I guess I'll be doing a canle light painting. :(

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I hope you are not going to make an 80yo lady paint?!?!?!

 

As you said, if you could have qualified for a conventional loan this would have never been an issue. It's not her fault your scores dropped and you can't qualify now and FHA is your only option.

 

Since you are having problems with financing with FHA and their requirements, it is not the old lady's fault. Either fix the problem or find a home that does not have peeling paint. Don't put this problem back on this poor old lady, it's your problem if you want the home.

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I know for our first house, we had to pull up the sleeves and do a LOT of repairs before we closed on the house in order to qualify for the FHA mortgage. We scraped paint off of the ceiling... we climbed the roof and replaces an eave that had fallen down... we restained windows...

 

FHA loans are great because they open up the world of homeownership to people who are not the elite. But they do come with their own set of rules that you need to adhear to... the real estate agent never should have told you that the seller would take care of it, without consulting with the seller first.

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The fact you switched loan types from Convention to FHA and did not ammend the purchase agreement would seem to put the responsibility to get the home repaired on you. Have you contaced your LO to see if they will do an escrow holdback for the painting?

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I hope you are not going to make an 80yo lady paint?!?!?!

 

As you said, if you could have qualified for a conventional loan this would have never been an issue. It's not her fault your scores dropped and you can't qualify now and FHA is your only option.

 

Since you are having problems with financing with FHA and their requirements, it is not the old lady's fault. Either fix the problem or find a home that does not have peeling paint. Don't put this problem back on this poor old lady, it's your problem if you want the home.

 

 

She wants to sell. No it is not her fault for any of my financing issues..However she is making a crap load of money on this sale. She can pay someone to paint.

Me wanting this house is not a problem at all but it is also my luxury to go find another home if i so chose to.

Oh also both her and her realtor knew of the financing change and she signed off on it. If another buyer would have tried to purchase her house and had FHA financing the issue would arise either way.

 

*I really did not appreciate your tone*

 

 

Oh and FYI : When the issue came up this past friday I offered to paint the house myself on sunday but the realtor did not give me her response until today.

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I'd contact the realtors office, talk to her broker and tell them they needed to get the job done bc their agent was responsible for the mess.

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The fact you switched loan types from Convention to FHA and did not ammend the purchase agreement would seem to put the responsibility to get the home repaired on you. Have you contaced your LO to see if they will do an escrow holdback for the painting?

 

 

We did do some sort of ammendment...but its fine now. my fiance is going to go over and paint after work on wednesday. So prayerfully all is well.

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....

However she is making a crap load of money on this sale. She can pay someone to paint.

 

...

Oh also both her and her realtor knew of the financing change and she signed off on it.

 

But if the paint job is still under $3500, then it really is your responsibility to have it done.

 

As I said before, personally, I'd have the broker do it with me paying for the cost, not labor.

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....

However she is making a crap load of money on this sale. She can pay someone to paint.

 

...

Oh also both her and her realtor knew of the financing change and she signed off on it.

 

But if the paint job is still under $3500, then it really is your responsibility to have it done.

 

As I said before, personally, I'd have the broker do it with me paying for the cost, not labor.

 

 

Im just glad i have a man who loves me and this house. He said he'd take care of it with no hesitation. I think i just got pissed really because I understood she was 80 and i offered and here it is a few days before we close and i have my own painting to do at my current house, chipped paint from pictures and little dings here and there.

My agent should have told me her response on saturday when her realtor told her so that i could have gotten my butt over there to do it.

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I hope you are not going to make an 80yo lady paint?!?!?!

 

As you said, if you could have qualified for a conventional loan this would have never been an issue. It's not her fault your scores dropped and you can't qualify now and FHA is your only option.

 

Since you are having problems with financing with FHA and their requirements, it is not the old lady's fault. Either fix the problem or find a home that does not have peeling paint. Don't put this problem back on this poor old lady, it's your problem if you want the home.

 

 

She wants to sell. No it is not her fault for any of my financing issues..However she is making a crap load of money on this sale. She can pay someone to paint.

Me wanting this house is not a problem at all but it is also my luxury to go find another home if i so chose to.

Oh also both her and her realtor knew of the financing change and she signed off on it. If another buyer would have tried to purchase her house and had FHA financing the issue would arise either way.

 

*I really did not appreciate your tone*

 

 

Oh and FYI : When the issue came up this past friday I offered to paint the house myself on sunday but the realtor did not give me her response until today.

 

No tone, just the truth.

 

I bet if you check her listing agreement, it may have something that addresses what financing she will accept. If it were my listing and there was ANY safety, marketability, function or cosmetic issue with the home, FHA would not be an option for the buyers.

 

If you have a run down home, it is in the sellers best interest not to accept FHA/VA financing IF the property is able to be sold through other financing means and supply and demand is in balance in that partictular market. Nothing illegal about that. Saves both parties the red tape, additional paperwork and other associated bumps in the road (your situation is a good example). Cash or conventional financing is the only option for homes like this for a quick and painless sale for both sides.

 

Finally, it is really no concern of yours how much this lady is making on the sale. If she has lived there for 50+ years, sure she is going to make out like a bandit and deserves to. And she is 80! If she lives another 5 years, God bless her. Let her enjoy her golden+++ years with a little pocket money.

 

Sounds like your agent is a rookie by not putting in a backup plan knowing the condition of the home the first time it was shown to you. Always put in a CYA statement on the sales agreement addressing any liveability or safety issue so it does not come back to bite you.

 

Good luck.

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I hope you are not going to make an 80yo lady paint?!?!?!

 

As you said, if you could have qualified for a conventional loan this would have never been an issue. It's not her fault your scores dropped and you can't qualify now and FHA is your only option.

 

Since you are having problems with financing with FHA and their requirements, it is not the old lady's fault. Either fix the problem or find a home that does not have peeling paint. Don't put this problem back on this poor old lady, it's your problem if you want the home.

 

 

She wants to sell. No it is not her fault for any of my financing issues..However she is making a crap load of money on this sale. She can pay someone to paint.

Me wanting this house is not a problem at all but it is also my luxury to go find another home if i so chose to.

Oh also both her and her realtor knew of the financing change and she signed off on it. If another buyer would have tried to purchase her house and had FHA financing the issue would arise either way.

 

*I really did not appreciate your tone*

 

 

Oh and FYI : When the issue came up this past friday I offered to paint the house myself on sunday but the realtor did not give me her response until today.

 

No tone, just the truth.

 

I bet if you check her listing agreement, it may have something that addresses what financing she will accept. If it were my listing and there was ANY safety, marketability, function or cosmetic issue with the home, FHA would not be an option for the buyers.

 

If you have a run down home, it is in the sellers best interest not to accept FHA/VA financing IF the property is able to be sold through other financing means and supply and demand is in balance in that partictular market. Nothing illegal about that. Saves both parties the red tape, additional paperwork and other associated bumps in the road (your situation is a good example). Cash or conventional financing is the only option for homes like this for a quick and painless sale for both sides.

 

Finally, it is really no concern of yours how much this lady is making on the sale. If she has lived there for 50+ years, sure she is going to make out like a bandit and deserves to. And she is 80! If she lives another 5 years, God bless her. Let her enjoy her golden+++ years with a little pocket money.

 

Sounds like your agent is a rookie by not putting in a backup plan knowing the condition of the home the first time it was shown to you. Always put in a CYA statement on the sales agreement addressing any liveability or safety issue so it does not come back to bite you.

 

Good luck.

 

 

Maybe I was just stressed and yes I do blame my agent because i would have painted it and offerecd to do so before the seller even knew of the issue.

Secondly she kept a very nice clean home the paint is such a minor issue. She also stated in her listing agreement FHA & Conventional ok.

But thanks This too shall pass and I will prayerfully be in my home on friday.

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the fact that she is making gobs of money or will lose money on the sale is immaterial. At this point so is the fact of what she would originally accept for financing.

 

Based on my understanding of what was posted, the 2 of you agreed on a price for which you said you'd get conventional financing. You then changed the financing on your end to FHA financing which requires repairs to be made. That wasn't part of your original offer.

 

If you want the house with the kind of financing you sought, then you need to make the repairs. If not, then she is entitled to your deposit if your mortgage contingency has expired.

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I am happy to see everything worked out for you. Keep in mind that all you have to do to satisfy the FHA is redo what paint was actually peeling, i.e. you do not have to repaint the entire foundation or even do things like match colors. All the appraiser wants to see is that there is no peeling paint so they can check the block and move on. They wont care about aesthetics. As far as I know, you could repaint with neon green or a purple polka dot pattern or perhaps even a big ALIENS LAND HERE sign and as long as it isnt peeling you should be ok.

 

Doug

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I am happy to see everything worked out for you. Keep in mind that all you have to do to satisfy the FHA is redo what paint was actually peeling, i.e. you do not have to repaint the entire foundation or even do things like match colors. All the appraiser wants to see is that there is no peeling paint so they can check the block and move on. They wont care about aesthetics. As far as I know, you could repaint with neon green or a purple polka dot pattern or perhaps even a big ALIENS LAND HERE sign and as long as it isnt peeling you should be ok.

 

Doug

 

 

Thanks Doug. this is great info!

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