Seller refusing to meet FHA appraiser's items

[pegwatts]

Pennsylvaina

[pegwatts]

We put in an offer, which was accepted, on a house in Pittsburgh which has been through several "owners." They advertised the house FHA Mortgages Accepted. However, since they (Nations REO and Veriquest) have not owned the property for more than 6 months 2 FHA appraisals were required. FHA 1 found a short list, which we actually did most of the work to address. FHA 2 found a huge laundry list -- including several deemed "structual and health/safet.Y Now the sellers refuse to fix the problems, insist on going with the FHA 1's report or will back out of the deal OR raise the selling pricw by $9k! They signed seller's agreements and cashed our escrow check.

Do we have any recourse? Can we put any type of lien on the property to prtect it from being sold out from under us? Also -- in order to move the repairs along we (the the seller's insistance) have the utilities currently on in that property in our names and are already getting bills?

We are both blind staying w/ relatives and are currently homeless. ALL our money is tied up iin this sale! HELP??????

[Stevef]

The advertisement that stated "FHA Mortgages Accepted" is not binding. The purchase contract is binding. What does it say about FHA inspections, or any other inspections?

[nextwife]

Just because they will accept FHA financing does NOT mean any ordered repairs must be at THEIR expense. I've had many buyers accept responsibility themselves for needed repairs.

[HUD-1]

The FHA does not state that the seller is required to do the repairs at their expense. It is totally negotiable. It is the lender's responsibility to determine what repairs will be required and what value will be used for underwriting. If the repairs don't get done, lender denies mortgage. Check your contract regarding inspection and financing clauses.