seller will not sign an extention

[Realguy32ntn]

Hi I live in the state of tennessee and I am trying to purchase my first home. The closeing was suppose to be Oct. 30th but the seller didnt get the agreed repairs done in a timely mannor causeing the closeing to be delayed. My loan is a USDA loan and all is done and ready to close with the exception of the USDA stamp. Now the seller will not sign a extention allowing us the two to three weeks that the USDA is behind. What can I do? Help me please.

[CraigFL]

Find out what the problem is and modify the offer in some way to appease him so that he will sign the extension....

[nextwife]

Did the contract require HIM/HER to do the repairs? To do any repairs?

[Realguy32ntn]

Yes he did agree to do the repairs via a contract. This is what I dont understand. We just found out that the house is about to go into forclosure, and my paperwork is all done with the exception to the USDA stamp thing. We are like maybe 14 working days at the most out.

[JETX]

Simple answer....
Have the title company escrow sufficient funds to pay for the incomplete repairs.... then close on the property.

Of course, the above is contingent on whether you even HAVE a contract left since the CONTRACTED day of closing has passed.

[nextwife]

Originally Posted by JETX

Simple answer....
Have the title company escrow sufficient funds to pay for the incomplete repairs.... then close on the property.

Of course, the above is contingent on whether you even HAVE a contract left since the CONTRACTED day of closing has passed.

JETX, while that is frequently a workable solution, I have found that USDA loans are not allowed to be closed and funded until the required work is verified as completed.

[JETX]

Originally Posted by nextwife

I have found that USDA loans are not allowed to be closed and funded until the required work is verified as completed.

I believe that is the case when repairs are imposed as part of the lenders requirement. We have nothing to indicate that these repairs are other than repairs required/requested by the buyer.

[nextwife]

Originally Posted by JETX

I believe that is the case when repairs are imposed as part of the lenders requirement. We have nothing to indicate that these repairs are other than repairs required/requested by the buyer.

You are correct. I was thinking these were USDA imposed repairs.

[Realguy32ntn]

Hey guys thanks for your responces. As I understand it from my morgage broker is that he couldnt even submit the file to USDA for review till the appraiser returned to the property and noted that the repairs were completed. One of the repairs was a banistre and hand rail on the front porch which they consider a safety issue. And a moisture issue in the basement that needed to be repaired with improveing the grade around the house to drain the water away from the house and drylocking the basement walls. Any how we look at it either he or his agent should have had the knowlege of whats required to close a USDA loan. As for if we are still under contract, as I understand it we are cause the seller signed a amendment that I havent responded to where he wants me to pay an extra $1000 to sign the extention. The way I see it, and I may be wrong, but the deal has been made and I have no intention of paying him more money just cause of a delay that is the result of his lack of motivation. Am I right or wrong?

[nextwife]

The delay is due to you and your choice of financing. An owner need not be well versed in the wide array of potential lender work orders, and many RE brokers have never worked with USDA loans. I sold RE for many years and never once had a USDA financed loan occur.

Just an FYI: just because a repair may be lender required does NOT mean the seller is automatically required to do it. That would depend on contract lanquage. I've purchased several properties and have NEVER had a seller pay for repairs. Mostly, I did them after closing or I put up an escrow to insure the lender of completion. Especially keep in mind that many homes are discounted DUE TO CONDITION. And when that is the case, and the seller has already adjusted for condition, they may not be thrilled to ALSO be told to do repairs.

[JETX]

Originally Posted by Realguy32ntn

As I understand it from my morgage broker is that he couldnt even submit the file to USDA for review till the appraiser returned to the property and noted that the repairs were completed.

Don't you just LOVE it when a poster doesn't give ALL the details in their initial post, making us waste time providing one answer when it is not valid due to the MISSING data??
In this case, it would appear that nextwife is more than likely correct... in that these were likely lender required repairs.
Of course, we still don't KNOW that... since the OP isn't giving full and complete details.

One of the repairs was a banistre and hand rail on the front porch which they consider a safety issue.

Being a safety issue, more than likely lender required. Also, use of THEY also indicates that the lender is involved in this requirement.

Any how we look at it either he or his agent should have had the knowlege of whats required to close a USDA loan.

More to indicate lender required.

As for if we are still under contract, as I understand it we are cause the seller signed a amendment that I havent responded to where he wants me to pay an extra $1000 to sign the extention.

Then it isn't VALID. Unless signed by all parties, it is just an OFFER.... and not an obligation.

The way I see it, and I may be wrong, but the deal has been made and I have no intention of paying him more money just cause of a delay that is the result of his lack of motivation. Am I right or wrong?

Absent the FULL review of the documents.... likely that you are WRONG!!
This contract is time specific. If it doesn't close on or before the date noted therein and there is no specific clause to extend, it 'more than likely' becomes DOA and would no longer be binding on either party.