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Answers (7)
- auroradraconis
- Contributions:13
Well, I just heard back from the realtor and the FHA appraiser the buyer used basically said that our entire house is hazardous.
In order to get their loan approved:
1. The house needs to be thoroughly cleaned, baths, etc.
Has anyone ever heard of FHA loans being this strict? My realtor is now telling me that if we do not close on this deal, that the house will be foreclosed on and we will be SoL no matter what happens. He is looking into see how flexible the lender will be on this, but I am not holding my breath. Anyone else have any advice or am I completely screwed now?
In order to get their loan approved:
1. The house needs to be thoroughly cleaned, baths, etc.
2. Flooring needs to be put in the living room
3. Carpet needs to get replaced in the bedroom.Has anyone ever heard of FHA loans being this strict? My realtor is now telling me that if we do not close on this deal, that the house will be foreclosed on and we will be SoL no matter what happens. He is looking into see how flexible the lender will be on this, but I am not holding my breath. Anyone else have any advice or am I completely screwed now?
- sunnyview
- Contributions:25139
No lender will require that stained carpet be replaced. That part sounds like the new owner's convenience only. What you need to know is the bare minimum that the bank will accept to close, not what the buyer wants for the end result. You can offer to coordinate with your buyers a day or two before closing for an install on the master bedroom carpet, but I would not move out before that.
Honestly, I am not sure I believe that the lender specified carpet. My guess is they said that the floor had to be covered or finished to pass appraisal, but I think that would be met with vinyl not just carpet or tile or imported marble. Many houses in different areas of the country have tile in bedrooms instead of carpet. Lenders do not require them to be carpeted before sale, many do require that it not be just uncovered subfloor.
Honestly, I am not sure I believe that the lender specified carpet. My guess is they said that the floor had to be covered or finished to pass appraisal, but I think that would be met with vinyl not just carpet or tile or imported marble. Many houses in different areas of the country have tile in bedrooms instead of carpet. Lenders do not require them to be carpeted before sale, many do require that it not be just uncovered subfloor.
- auroradraconis
- Contributions:13
Thanks for the replies. I can certainly find out if it has to be carpet, (right now it is bare sub floor since this is an upstairs room) I am just going by what my realtor told me. He said their lender specified carpet. I have no issue with them putting in carpet and us not using the room since we do not use it anyway. I can keep the animals off it and make sure that nothing happens to it while we are still here. The problem is the buyers also want to replace the carpet in the master bedroom (The carpet is stained, but still covers the whole floor so would not affect their FHA eligibility) at the same time as doing the carpet in the living room/dining room. There is no way we can vacate the master bedroom for 3 + weeks. We would have no place to sleep and no place to put the furniture. Which is why my realtor suggested moving out early so the buyers could do both rooms.
I know for a fact I am not moving until I am sure we are going to close, so definitely not before they get their approval. I am just confused as to why my realtor would not have known that the lack of carpet would be an issue when we first listed the house. We could have specified no FHA loans and avoided this whole mess.
I know for a fact I am not moving until I am sure we are going to close, so definitely not before they get their approval. I am just confused as to why my realtor would not have known that the lack of carpet would be an issue when we first listed the house. We could have specified no FHA loans and avoided this whole mess.
- Tere Rice, "Tere Rice"
- Contributions:307
Hi you are almost there! I had this happen with a home SS that had water damage to the wood floors. The seller would not replace and the wet/damaged flooring had been removed down to the slab, buyer was fulling aware of this and planned on replacing after COE. When you say there is no carpet would I be right to think it is down to the slab? The buyers lender also insisted there be a "floor covering". This was brought to the attention of the lender because it was on the Termite/Dry rot report. My solution was simple I raided Home depot and Big Lots for area rugs, laid them over the bare spots and called the termite company to recheck. He did, and wrote on his report the floor was covered and we closed. I returned the area rugs for a full refund. I am not saying this will work for your situation, but think outside of the box and be CHEAP! The requirements for this lender was the floor needed to be covered, didn't say with what, just covered. Maybe a carpet/linoleum remnant would work as a temporary fix? Best to you!
- ConnieK_Oklahoma
- Contributions:2899
it's most likely not that it must be carpet, it simply must have finished flooring. the cheap vinyl is a good option.
as far as it not sitting right- the agents should have forewarned you of it being a problem- perhaps they were hoping an appraiser wouldn't notice or they are new. it came up in the middle of the process because an appraiser put on the brakes- there's no going foward without resolving it.
suggestion: ask the buyer's agent to check with their lender. I have had a few situations where we had a contractor standing by - carpet was already purchased and we had a signed contract for the contractor to do the install and was scheduled to be installed the day AFTER closing and the appraiser would sign off. a few times we've had to do it the DAY of or the day before. It really depends on the opinion of the underwriter and the appraiser. it's worth asking!
otherwise, try sunnyview's idea of just not using that room, let them put the carpet in- that risk is to them and if I were them I would try really hard to just have it scheduled to install on closing day.
carpet installers are pretty fast- I just replaced carpet in 4 rooms- one guy - a half day. (carpet was removed and rooms were empty and clean)
as far as it not sitting right- the agents should have forewarned you of it being a problem- perhaps they were hoping an appraiser wouldn't notice or they are new. it came up in the middle of the process because an appraiser put on the brakes- there's no going foward without resolving it.
suggestion: ask the buyer's agent to check with their lender. I have had a few situations where we had a contractor standing by - carpet was already purchased and we had a signed contract for the contractor to do the install and was scheduled to be installed the day AFTER closing and the appraiser would sign off. a few times we've had to do it the DAY of or the day before. It really depends on the opinion of the underwriter and the appraiser. it's worth asking!
otherwise, try sunnyview's idea of just not using that room, let them put the carpet in- that risk is to them and if I were them I would try really hard to just have it scheduled to install on closing day.
carpet installers are pretty fast- I just replaced carpet in 4 rooms- one guy - a half day. (carpet was removed and rooms were empty and clean)
- wetdawgs
- Contributions:26841
It seems as if you are so so close to a deal after two years of struggling that it would be very painful to let it go and spend another two years or more trying to find someone to buy.
While you made it clear there was no carpet, FHA loans have a number of requirements that the property be livable and I suspect that a floor covering throughout is on their list. Your agent can't change the FHA guidelines, nor can the other agent.
I agree with Sunnyview - come up with a way that it can be installed without moving out. Put your furniture in the garage, if it is blocking installation. Selling a house is not fun, there are always inconveniences. Don't let this get in the way of moving forward.
While you made it clear there was no carpet, FHA loans have a number of requirements that the property be livable and I suspect that a floor covering throughout is on their list. Your agent can't change the FHA guidelines, nor can the other agent.
I agree with Sunnyview - come up with a way that it can be installed without moving out. Put your furniture in the garage, if it is blocking installation. Selling a house is not fun, there are always inconveniences. Don't let this get in the way of moving forward.
- sunnyview
- Contributions:25139
If the buyers are willing to replace the carpet, then I would offer them access to do that without you moving. It would be cheaper to cordon off those rooms and still live there than it would be to risk the HAFA issue. I would not move. There has to be a better way to deal with this.
I did not think that FHA required carpet so what about seeing if you can do a roll out vinyl edge glue only instead to meet the bare bones requirement for a floor covering. Even a large area of cheap vinyl might allow you to stay in and still meet the appraisal. Then the buyers could still put carpet in when they closed.
I did not think that FHA required carpet so what about seeing if you can do a roll out vinyl edge glue only instead to meet the bare bones requirement for a floor covering. Even a large area of cheap vinyl might allow you to stay in and still meet the appraisal. Then the buyers could still put carpet in when they closed.
Short Sale Issue
We listed the house back in March of 2010 and we were completely up front with the issues of the house from the beginning, the main one being that there is no carpet in the formal living room/dining room, and that we are not financially capable of replacing it. We have said this from the very beginning, several times.
Our buyer is now telling us that they are doing an FHA loan and that in order to get the loan approved, there must be carpet in this room.
My realtor is telling me that the solution would be for us to vacate the property early so the buyers can come in, replace the carpet themselves and then get their approval.
Something about this just does not sit right with me. I would think that somewhere in the beginning of this process the carpet issue should have been mentioned, but this is the first I am heard about it. Also, if we vacate the property and the buyer backs out, we are completely screwed. We would no longer be living in the house for sale, which means we would not qualify for HAFA and it would just be a real big mess. Is my realtor giving me bad advice here? Is this something he should have known about sooner? Should be buyers realtor have known? Is it time to just cut my losses and start the process over with a new realtor and do I even have the option to back out of the sale if I am not happy with the way it is being handled? Thanks for listening.
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