FHA Loan, in contract, appraiser says we need to repair exterior (sold as is) before closing – is this legal?
We have a lead inspection report stating it is not lead paint, mortgage broker for Wells Fargo states it doesn’t matter. So we are forced to side the entire house now instead of after closing. But is not our house technically can something happen to us if we do the work invest money where the sellers then say no thanks and walk away from the contract?
Yes, it is legal, and it happens regularly with FHA loans. FHA appraisers also act as inspectors for FHA, and they will insist that certain repairs be handled before closing. It’s a risk you take, if you cannot make some sort of arrangement with the sellers to handle the needed repairs. Either take the risk, or walk away from that property and find one which does not need such repairs.
Asbestos, Mold, & Lead Paint. Images & Information. Courtesy of GSR Environmental Inspection