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.


Asked on 11/10/07, 8:04 pm

2 Answers from Attorneys
Robert Sher Wagshal and Sher

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.

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Answered on 11/13/07, 2:51 pm
Carter Ferrington Bar Adon Vogel PLLC

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).

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Answered on 11/12/07, 11:12 am


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