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| *Ostroff, Fair and Company>>>Personal Finance |
Escrow Acct....? |
..They are opening one for us because we are trying to buy a house,but it has a lot of things wrong with it,so they need the money for the repairs it needs up front. Why do we need this,what if the town says no,and does that mean they'll start fixing right away and FURTHER delay the closing? (We were supposed to close on may 31st.) Opinions? Thanks, N. well first of all - who is 'they' telling you this, and why would 'they' need to repair the house you are buying and living in......and you are going to close on may 31st (what year? 2008?) I think we need more information. Also, why purchase this home if there is soooo much wrong with it.....or offer a much lower dollar value for the home, do the fixer upper thing yourselves. Source(s): 40 + years experience You have a very uncomplete thought and I am not sure I follow. I will try my best. You have an escrow account when you are buying the house. It is put into your mortage. I am unclear as to whom "they" are. The person selling the house should have made the repairs or taken hte amount it would cost to make these repairs off their selling price. From what you are telling me, I don't trust your situation. Escrow on a mortage can be set up to pay your taxes twice a year. At least it is in my state. It also is held to pay for your homeowners insurance if you have an FHA loan. There has to be permits if there are major repairs that need to be done so that can delay closing. If this is a historic house, the town has a right to decline some repairs that aren't done to the way it was before the damage. You need things clarified, and I would talk to the realitor or agent that has been handling this for you. Voice your thoughts and concerns to them. Read everything twice and don't be afriad to question anything you don't understand. Good Luck. Why are you trying to buy a house that need so many repairs? That sounds like a short term headache for you. I never heard that you suppose to give the owner money to help them repair the house you are buying, something here doesn't seem right, I know what the account is for I just don't understand what does that has to do with the condition of the house itself. One I tried to buy a house, let's said the price was 300k, we gave the escrow money 3k and then the mortgage company came back saying that the house was not worth it more than 275k and didn't authorize the mortgage for more than that, so we didn't buy the house, the seller of the house didn't wanted to give us the money back even they have another buyer for their house, so at the end we ended with only 1500 from the original 3000 we put in the account and no house. Good luck. |
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