Amendment after agreed contract

[NinaN]

We deal with this all the time. The problem is in the timing. It's much easier late in the contract to have a closing cost credit than to change the price. With the new rules in effect, that might not be true anymore.

Any time I work with a client for a repair credit, I write into the Repair Response that the credit will be given via a reduction to the closing costs per Addendum 1 which just discusses the credit. The lender sees the addendum but not the request for repair.

For $1K, a repair credit might not have an impact, but the bank will want to know what it's for, because if it's a health or safety issue, or even a defective stove it could create issues.

Your agent should have warned you, and should have gotten the details worked out before you signed the repair agreement.

[SmartMoney]

If you give the credit for repair, the underwriter and appraiser can require the repair to be done prior to closing. Depending on what it is, I have seen the item removed from the value of the home when in the appraiser's hands. So that leaves you with a seller that doesn't give a rat's patooty if the repair is done correctly and the buyer with out a warranty, as very few warranties remain in place during a transfer.

OP, the agents are doing this the best way for all involved. There's nothing sneaky or underhanded about it.

[SmartMoney]

Originally Posted by NinaN

With the new rules in effect, that might not be true anymore.

In our area, this has been the debate of the year......on walk-thru items. We have different people saying different things.

Day 1 and I'm already sick of it.