What type repairs will bank hold up mortgage.

SMC0904July 21, 2014

We are doing a FSBO. We have had 2 showings and am expecting the 2nd offer in the next two days. We had 3 realtors come in and give us a market analysis...total of $30k difference from the lowest range to highest range so we picked the middle. There is not much inventory in my area so I believe it's helping. My question is. We have about 1 foot of rot wood on the front door frame. This has been disclosed to both buyers. We had a window/door company come in to evaluate and provide an estimate to fix. We are debating if we should include in the offer that the seller take over the responsibilty of fixing the door. What I don't want is to agree on a price with the door being the buyer's responsibilty and then the bank not approve their loan due to the repair needed. Is this something that a bank/lender can do?

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Just fix it and repaint the frame ... you don't want to leave them any things that they can use to hammer the price down after inspection.

Unless it's a couple thousand to fix.

    Bookmark   July 21, 2014 at 3:49PM
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Due to factors unbeknown to me (husband is dealing with it) it looks like we would need to replace entire door plus frame and some of the subfloor/tile in the foyer that is up against the front door....i'm expecting it to cost at least a couple of thousand to fix hence the hesitation to spend the $$.

    Bookmark   July 21, 2014 at 3:58PM
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Get another estimate, for sure. That's either a much bigger problem than a foot of dry rot, or the company who gave you the estimate is trying to take you to the cleaner. Either way, you need to know so that you can negotiate on who will do the repair or pay for it. A typical repair job for rotted wood on a door or window frame just involves removing the section of wood that is bad, replacing it with good wood, and bondo-ing that into place. Then you prep, prime, and paint and you're done. If they think you need to replace the full frame and door and surrounding tile, either they're wrong and just trying to upsell you (hopefully!) or you have issues that are far beyond that foot of rotted wood, in which case you need to disclose this to the buyers, now that you have a heads up on the extent of the damage.

It's unlikely that this would stop a loan from going through either way, though, if that helps with the original question!

    Bookmark   July 21, 2014 at 4:19PM
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Thanks artemis for the input. There is some rot wood under the door that extends about a foot into the home floor (we have access to under the foyer area to see the rot). There is rot on the door frame which looks to go up about a foot. Not sure exactly why the whole door would need to get replaced but there may be more issues than I know of. A friend of ours is a carpenter and told us the whole door/frame would probalby need to be replaced and we also had that company come out and tell us the same thing. I'm leaving it up to my husband to figure out how much needs to be replaced and cost. I'm trying to figure out if the buyer's lending company can stop the purchase from going through due to the rot. Thanks again!

    Bookmark   July 21, 2014 at 4:29PM
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If the lender requires a termite clearance before funding, then, yes, the rot could hold up the loan, because that would be listed.

    Bookmark   July 21, 2014 at 6:38PM
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