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2 Perspectives ...

Posted by Jay J -Moderator on August 16th, 2001 08:12 PM
In reply to FHA appraisal by Amber on August 16th, 2001 03:53 PM [Go to top of thread]

Hi Amber,

The purpose of the FHA Inspection, in a sense, is to notify the Seller of the 'things' that need to be done to the house in order for an FHA Buyer to get load approval (among other things.) As to who PAYS for the fixes is negotiable.

In other words, all that FHA is telling the Seller is that if they want their house to be FHA-approved (in a sense), A, B, and XYZ need to be done to the home in order to get that approval. See what I mean??? Hence, the Seller can pay to have the items fixed OR the Buyer can pay CONTINGENT ON everything else FHA-related is clean-and-green. Bottom line: FHA won't loan the $$$ until the fixes are made, which means that WHOEVER ends up paying for them, must do so BEFORE closing. As an FHA Buyer, you won't be able to go to closing w/o those things fixed. It's a Contingency of the Loan.

Now, do you have a Real Estate Attorney??? I hope you already went through a formal Home Inspection (which is different from a formal appraisal.) The Attorney is the one who's working in YOUR interests. Forget the Realtor - HE / SHE works for the Seller! Get it??! The Attorney might cost you $400, give or take. That's a WHOLE heck of a lot cheaper than finding out something is 'not in your favor' in the paperwork later on down the road. Well, you can pay now or you can pay later. And later on, I guarantee you, it will be MUCH harder to get anything done in your favor because 1) the Seller is gone, 2) you'll have to prove 'things' from when you bought the house, and 3) you'll have to pay a retainer fee MUCH higher than the $400.

My best to ya and hope this helps.

Jay J -Moderator

PS: Don't be surprised if the Seller opts not to pay a Dime for the fixes. If the house is very sellable, they'll wait for the next non-FHA Buyer to come their way. Heck, they may not even pay half ...

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