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WHEDA requiring home fixes PRIOR to closing - WHAT?? *UPDATE*

Posted by on Aug. 26, 2014 at 10:43 PM
  • 23 Replies
1 mom liked this

So we are working on closing on a house, but seriously, WHEDA has been giving us such a headache.  We were supposed to close this Friday :(  The Seller has been awesome to work with, so very grateful for that.  

Long story short -

*WHEDA did an appraisel at the end of July, but waited until a two weeks to give us a list of things that "concerned" them, and required estimates done by contractors and electricians to fix said problems, and the source of funds to fix said problems.  We scheduled them immediately, then turned in the estimates and let them know our options (We are buying the house "as-is", so the seller is not interested in fixing anything - so we have to come up with the money).

*Now, 1 week before closing, they are requiring to have said problems fixed prior to closing.


This is so frustrating, but the seller has decided to grant an extension for 3 more weeks so we have enough time to fix the issues at hand and scrape of up the funds to fix everything.  This is ridiculous, especially since these "issues" were going to be fixed in a span of the next year of us living there, so having to cough up the money immediately really sucks for us :(

Has anyone else gone through this or something similar??


*UPDATE*

So having spoken to everyone - from the seller, attorney, and loan officer - the seller says he is more than willing to work with us, and that to basically take the estimates we were given and tack it onto the offer.  They can then ammend the Purchase to Offer and hopefully everything falls into place from there!  

~Let go, and Let God~

by on Aug. 26, 2014 at 10:43 PM
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Replies (1-10):
Anonymous
by Anonymous 1 on Aug. 26, 2014 at 10:46 PM

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?

Peephy
by Member on Aug. 26, 2014 at 11:00 PM

The main thing is the porch - the supports need to be fixed.  The second big one is the knob and tube wiring in the attic. Then there are the little things - add smoke & carbon monoxide detectors to basement and second floor, fix basement railing, and part of the floor in a closet has some water damage.

The seller is selling "as-is" and has stated he is not doing repairs on the home, which is why he is selling it so low.  We are told we basically have the loan, we just need to fix everything prior to closing - but yeah, I expected them to give us a deadline AFTER closing, not requiring all this prior to it.

Quoting Anonymous 1:

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?


~Let go, and Let God~

mrsmoonbeam
by Member on Aug. 26, 2014 at 11:01 PM
This. is it a safety issue or what?

Quoting Anonymous 1:

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?

mrsmoonbeam
by Member on Aug. 26, 2014 at 11:08 PM
Those are safety issues. It sounds like code violations get over it. the owner should NOT even be ALLOWED to sell the place without makeing it up to code. would you rather hour house burn to the ground a month after you buy it or the pourch collaps and hurt someone? these things NEED to be fixed ASAP. Get over it. this for your own safety!
Peephy
by Member on Aug. 27, 2014 at 12:32 AM

It isn't so much that the stuff needs to be done - we get that - its the fact that it took them two weeks to give us a list of things to look into, and then less than a week to get it all fixed.  Like I said, thank goodness the seller was more than willing to work with us on extending the closing date to get everything done in time.  Haha, being 6 months pregnant is probably contributing to my lack of patience with others.  To me, the timing pisses me off far more than their demands - we could have had everything figured out by now, but even our loan guy told us that WHEDA tends to drag their feet.

Quoting mrsmoonbeam: Those are safety issues. It sounds like code violations get over it. the owner should NOT even be ALLOWED to sell the place without makeing it up to code. would you rather hour house burn to the ground a month after you buy it or the pourch collaps and hurt someone? these things NEED to be fixed ASAP. Get over it. this for your own safety!


~Let go, and Let God~

Peephy
by Member on Aug. 27, 2014 at 8:48 AM

BUMP!

dlock25
by Member on Aug. 27, 2014 at 8:51 AM

Problem is you are fixing things on a house you don't own yet. What happens if the loan falls through. I have seen them fall through the day before closing for something as simple as the bank changed its mind. I would not be fixing anything on a house that I don't own. If the sellar wants to sell the house the seller fixes the issues and you reimburse at closing but I would not be paying for it outright. You are bound to get the bad end of the deal.

Quoting Peephy:

The main thing is the porch - the supports need to be fixed.  The second big one is the knob and tube wiring in the attic. Then there are the little things - add smoke & carbon monoxide detectors to basement and second floor, fix basement railing, and part of the floor in a closet has some water damage.

The seller is selling "as-is" and has stated he is not doing repairs on the home, which is why he is selling it so low.  We are told we basically have the loan, we just need to fix everything prior to closing - but yeah, I expected them to give us a deadline AFTER closing, not requiring all this prior to it.

Quoting Anonymous 1:

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?



Anonymous
by Anonymous 1 on Aug. 27, 2014 at 8:58 AM

The "as is" moniker is a misnomer.  It is a very grey area.  There are certain safety issues that HAVE to be brought to code before money can change hands.  The only other way to deal with the safety issues AFTER the closing would be for the state to condemn the home, barring anyone from moving in until the safety issues are brought up to code.

There are a lot of "as is" issues that can be done after a closing.  Things like paint (exterior and/or interior), asthethic and cosmetic things, such as cabinets. doors, carpeting, fence repair, etc.  Most things that don't violate a safety code don't necessarily need to be done before closing.

But, safety issues...yeah, those have to be repaired before anyone will loan you the money.  And, the things you listed are huge safety issues.

The porch supports need to be fixed so it doesn't collapse.  Just think, it could collapse with one of your kids on it!

Knob and tube wiring???  That's an old house.  Yes, the state requires it to be rewired to code so your house doesn't burn down!  Possibly with YOU in it!  Knob ad tube wiring is not made for the load of today's electrical needs.  Today's appliances and electronics pull a much bigger load than that kind of wire is rated for.

Basement railing is NOT a little thing.  It is a HUGE liability.  It is what helps keep one safe while using the stairs.

Water damage is no small thing either.  Water damage leads to black mold issues.  Not to mention deterioration and rot.

The mortgage company or bank, whichever you're going through, is protecting their investment.  If these things are not repaired BEFORE they give you the money and you move in and something happens to the home, things get real messy with insurance claims, payments and homeowners.

All of the above is what goes with buying a house being sold "as is".

Quoting Peephy:

The main thing is the porch - the supports need to be fixed.  The second big one is the knob and tube wiring in the attic. Then there are the little things - add smoke & carbon monoxide detectors to basement and second floor, fix basement railing, and part of the floor in a closet has some water damage.

The seller is selling "as-is" and has stated he is not doing repairs on the home, which is why he is selling it so low.  We are told we basically have the loan, we just need to fix everything prior to closing - but yeah, I expected them to give us a deadline AFTER closing, not requiring all this prior to it.

Quoting Anonymous 1:

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?



Peephy
by Member on Aug. 27, 2014 at 9:10 AM

Yeah, makes sense, and I have no issues with it being fixed, I guess it was just something I didn't expect since this is our first time buying.  The timing of everything bothers me more than anything, but now that the seller has agreed to extend our closing date, we should hopefully have everything fixed by then.

Now my next concern - after repairs, could the seller back out??  He certainly doesn't seem the type, but legally, with us being the ones fixing it, could he just take our offer and throw it out afterwards if he wanted to become a jerk?

*just wanted to note, he has been working really hard to help us out - he is even covering the closing costs - so I am not crazy concerned, but it was a thought...

Quoting Anonymous 1:

The "as is" moniker is a misnomer.  It is a very grey area.  There are certain safety issues that HAVE to be brought to code before money can change hands.  The only other way to deal with the safety issues AFTER the closing would be for the state to condemn the home, barring anyone from moving in until the safety issues are brought up to code.

There are a lot of "as is" issues that can be done after a closing.  Things like paint (exterior and/or interior), asthethic and cosmetic things, such as cabinets. doors, carpeting, fence repair, etc.  Most things that don't violate a safety code don't necessarily need to be done before closing.

But, safety issues...yeah, those have to be repaired before anyone will loan you the money.  And, the things you listed are huge safety issues.

The porch supports need to be fixed so it doesn't collapse.  Just think, it could collapse with one of your kids on it!

Knob and tube wiring???  That's an old house.  Yes, the state requires it to be rewired to code so your house doesn't burn down!  Possibly with YOU in it!  Knob ad tube wiring is not made for the load of today's electrical needs.  Today's appliances and electronics pull a much bigger load than that kind of wire is rated for.

Basement railing is NOT a little thing.  It is a HUGE liability.  It is what helps keep one safe while using the stairs.

Water damage is no small thing either.  Water damage leads to black mold issues.  Not to mention deterioration and rot.

The mortgage company or bank, whichever you're going through, is protecting their investment.  If these things are not repaired BEFORE they give you the money and you move in and something happens to the home, things get real messy with insurance claims, payments and homeowners.

All of the above is what goes with buying a house being sold "as is".

Quoting Peephy:

The main thing is the porch - the supports need to be fixed.  The second big one is the knob and tube wiring in the attic. Then there are the little things - add smoke & carbon monoxide detectors to basement and second floor, fix basement railing, and part of the floor in a closet has some water damage.

The seller is selling "as-is" and has stated he is not doing repairs on the home, which is why he is selling it so low.  We are told we basically have the loan, we just need to fix everything prior to closing - but yeah, I expected them to give us a deadline AFTER closing, not requiring all this prior to it.

Quoting Anonymous 1:

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?



~Let go, and Let God~

Anonymous
by Anonymous 1 on Aug. 27, 2014 at 9:15 AM

Has he signed the purchase agreement?

Quoting Peephy:

Yeah, makes sense, and I have no issues with it being fixed, I guess it was just something I didn't expect since this is our first time buying.  The timing of everything bothers me more than anything, but now that the seller has agreed to extend our closing date, we should hopefully have everything fixed by then.

Now my next concern - after repairs, could the seller back out??  He certainly doesn't seem the type, but legally, with us being the ones fixing it, could he just take our offer and throw it out afterwards if he wanted to become a jerk?

*just wanted to note, he has been working really hard to help us out - he is even covering the closing costs - so I am not crazy concerned, but it was a thought...

Quoting Anonymous 1:

The "as is" moniker is a misnomer.  It is a very grey area.  There are certain safety issues that HAVE to be brought to code before money can change hands.  The only other way to deal with the safety issues AFTER the closing would be for the state to condemn the home, barring anyone from moving in until the safety issues are brought up to code.

There are a lot of "as is" issues that can be done after a closing.  Things like paint (exterior and/or interior), asthethic and cosmetic things, such as cabinets. doors, carpeting, fence repair, etc.  Most things that don't violate a safety code don't necessarily need to be done before closing.

But, safety issues...yeah, those have to be repaired before anyone will loan you the money.  And, the things you listed are huge safety issues.

The porch supports need to be fixed so it doesn't collapse.  Just think, it could collapse with one of your kids on it!

Knob and tube wiring???  That's an old house.  Yes, the state requires it to be rewired to code so your house doesn't burn down!  Possibly with YOU in it!  Knob ad tube wiring is not made for the load of today's electrical needs.  Today's appliances and electronics pull a much bigger load than that kind of wire is rated for.

Basement railing is NOT a little thing.  It is a HUGE liability.  It is what helps keep one safe while using the stairs.

Water damage is no small thing either.  Water damage leads to black mold issues.  Not to mention deterioration and rot.

The mortgage company or bank, whichever you're going through, is protecting their investment.  If these things are not repaired BEFORE they give you the money and you move in and something happens to the home, things get real messy with insurance claims, payments and homeowners.

All of the above is what goes with buying a house being sold "as is".

Quoting Peephy:

The main thing is the porch - the supports need to be fixed.  The second big one is the knob and tube wiring in the attic. Then there are the little things - add smoke & carbon monoxide detectors to basement and second floor, fix basement railing, and part of the floor in a closet has some water damage.

The seller is selling "as-is" and has stated he is not doing repairs on the home, which is why he is selling it so low.  We are told we basically have the loan, we just need to fix everything prior to closing - but yeah, I expected them to give us a deadline AFTER closing, not requiring all this prior to it.

Quoting Anonymous 1:

What are the things that need to be fixed? And, why are you, the buyer, having to fix them before you buy?




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