Legal Question in Real Estate Law in Maryland
FHA Financing
What is the specific meaning (and I
do mean specific) of part 7 -
''Lender Required Repairs'' on the
FHA Financing Addendum on the
Maryland Association of
Regulators? Paragraph 7 states
''In the event the FHA and/or
Lender require any repairs or
improvements (''Required Repairs'')
be made to the Property, Seller
agrees to perform the Required
Repairs and pay the
cost.. .provided the total cost . . .
does not exceed $2000.00. Other
properties involved would not
answer this question, instead they
stressed that THIS WAS A FHA
CONTRACT. We signed a paper
called ''Required Repairs'',
however, despite repeated and I
do mean repeated requests for the
name and information about the
home inspection company, the
name was never revealed. Again
we were told that this was a FHA
loan. Now the buyer asserts that
the paper ''required repairs'' had
thing to do with FHA. Also are their
any truly concerned lawyers
willing to study documents and
assist on a sliding scale in a case
that even though little money is
involved concerns action that
perpetuates unethical behavior
and in turn ruins honest sellers
willingness to deal with any ''first
time home owner'' programs.
2 Answers from Attorneys
Re: FHA Financing
When you agree to sell your home to a buyer who is applying for FHA financing, you agree that you will pay for certain repairs that FHA wants made before they will guarantee the loan. However, you should be furnished with a copy of the inspection report that requests the repairs as part of the transaction. If the repairs exceed $2000, you cannot be required to pay more than that amount.
Re: FHA Financing
It's not at all clear even which documents you're referring to. Maryland Association of Regulators???? Who or what are the "other properties involved" who "stressed that this is an FHA loan. This makes little sense. Are you speaking about the Maryland Association of Realtors (MAR) Contract to purchase a home? Are you referring to other parties involved in the transaction. And shouldn't you be the person choosing the lender here? You should have people on your side in a home purchase and you should be the decision-maker about what kind of loan you're taking on. What kind of loan did you apply for? It sounds as if you have little understanding of the agreement you signed to buy the home and almost no understanding of the agreement you're making to borrow money to purchase this home. An attorney could help you, but a really good real estate broker or agent could guide you through this process at a lower cost (or free if you start with that person and he can collect a commission).