House question....?

Question

..We are trying to buy a house which is a fixer-upper. It needs lots of work.The town will not let it be sold in the condition it is presently in.But,they have delayed the closing so long I am ready to say 4get it but hubby won't listen.They have to do electrical work.And other work,also.That would delay the closing another month,right?
If they do this work before the closing,the value of the house will go up instantly and we won't get the house anyway,right? Isn't the loan only good 4 3 months?
Please answer all questions......
Thank you.
N.

Umm..you didn't answer me...Would these maintenance repairs make the house's value go up then we wouldn't get the house after all? am I right?
also they are putting money in escrow for the repairs (becuz the seeler does not have the money),i know it went thru cuz the contractor went to the house the other day.Will they fix now or wait till after the closing;t(he escrow money is just to prove it'll be fixed) That I don't know...And there is no new contract...

Answer 1

Ah yes, the continuing saga of the house in Denmark.

An electrician can be in and out in a week. TOPS. Whether the value of the house will go up, it may, but it really depends on what kind of electrical work you are doing. If you are completely changing the wiring and service, it will go up a bit. If you are changing out some junction boxes and some other minor updates, no, it won't go up.

The loan is good for however long you locked in for. Check with your lender, if they are still speaking to you. Have the hubby call.

The "stupid hubby," as you have called him in your previous ramblings, is the cooler head of the two. Go with what he says.

Answer 2

It sounds like you already have a written contract to purchase the house. That contract should state whether there are any circumstances under which the seller can attempt to change the selling price. It should also note any conditions that may allow you to back out of the sale. It should state certain time periods within which certain actions need to carried out without breaching the contract. In other words, read your contract. And you might need to extend the contract to allow time for the repairs but without changing the price. The seller should eat any repairs required to bring the property to city code. In any event, contracts for real estate must always be kept in writing.

None of this should particularly affect your loan application. After 90 days your interest rate could vary slightly but not enough to worry about and even that may not happen.

Answer 3

The seller must perform under the "4 corners" of the contract. This would include repairs to bring it to code. Typically, non-construction loans expiration date are 120 days, so dont take on any extensive new debt, dont buy any big ticket items on credit, and dont fall behind your regular bills or change jobs and you should be OK on the loan if it needs to be extended for another 120days. Maybe interest rate may change so call your lender and discuss your options. FYI: if the repairs the seller has to make causes the closing to be delayed beyond the date on the contract they signed, then I would discuss an extension in writing and/or they perhaps paying any additional costs to maintain the rate, credit or such, but get it in writing.
Good luck!

Answer 4

So much going on with the house if the towns people see that you are really trying it wouldn't be a big deal but if they want to make your life hell you wouldn't get the help you need to solve the important issues. Be diplomatic with everyone, keep everything in writing don't loose your nerve.