Posts

What Is An Escrow Holdback?

We recently had a deal on a cute condo with a loft area. The issue was there was no railing on the area of the loft adjacent to the stairwell, so the appraiser called it out as a health and safety hazard (someone could literally fall down the stairs). The underwriter of course called for […]Read More

Seller Credits: When? How Much? Do They Slow Down Transactions?

Many buyers get credits for closing costs in lieu of credits for repairs, as most people know. If credits are for repairs, underwriters will require that they be completed prior to close which could cause delays. As such, it’s easiest on the lending side for the credit to be referenced on a simple RPA addendum […]Read More

Motorcycle Falls Off Wall; Fixing Houses; Appraisal Fails

When I was in college my roommate and I hung a motorcycle on a wall b/c we loved motorcycles and b/c we thought it was “artful” and amusing. My two roommates who didn’t love motorcycles found it neither artful nor amusing, particularly when the wall started to sag. And sure enough, after a month or […]Read More

Escrow Holdbacks/Post Closing Repairs OK At Some Lenders

We recently had a transaction with an entire bathroom incomplete and under construction. Our investor funded the deal before the work was done with the following conditions in place: (1) the home had another working bathroom; (2) there were no health and safety issues (exposed wiring, open pipes, etc.); and (3) 1.5 x the estimate […]Read More

Missing Floor Coverings & Issues In Foreclosed Property

We have a borrower trying to buy a foreclosure with condition issues that include missing floor coverings, missing cabinet doors, and a missing stove. Whether or not repairs have to be made prior to close has to do with: (1) are the issues “health and safety” related; and (2) is a “built in” item missing. […]Read More