Posted on: 23rd Jun, 2010 03:27 pm
I have a contract on a house with a 203(b) escrow. The repairs are estimated at about $4400 and all stem from termite or fungus damage.
About $2000 of the estimate is for a carport that is in very poor condition otherwise. I would like to have it removed instead. The other estimates are a bit high for the rest of the work.
The underwriter is telling me that I have to use that termite company for the work.
I called the termite company, and he said they will either do all the work or none of it. So if I choose to have someone else do the carport, they won't do anything, but it sounded like I could choose someone else. He said I will have to have them inspect it for a fee. Additionally, if more than 30 days after close (4 months from their original report), they will need to perform a new termite inspection.
I am concerned with having the termite company do the repairs anyway because they are not licensed contractors. They are not giving me any options for materials or type of work. I am completely at their mercy.
My realtor is pushing me to use the termite company as well.
Here is what I would like to do instead:
1) Take the carport down myself, or if I must, have a licensed contractor do it
2) Have a licensed contractor repair the other items
3) Have a non-interested third party do the final inspection
My questions are:
1) Can the mortgage company tell me who to use for repair?
2) Do I have to use the escrow for the repair? Can I pay for it myself?
3) Do I have to use the original termite company for the inspection?
4) If the termite company does the inspection, what is the consequence if they don't approve of the work?
Thanks for any help!!!! I can't seem to find any good information online.
About $2000 of the estimate is for a carport that is in very poor condition otherwise. I would like to have it removed instead. The other estimates are a bit high for the rest of the work.
The underwriter is telling me that I have to use that termite company for the work.
I called the termite company, and he said they will either do all the work or none of it. So if I choose to have someone else do the carport, they won't do anything, but it sounded like I could choose someone else. He said I will have to have them inspect it for a fee. Additionally, if more than 30 days after close (4 months from their original report), they will need to perform a new termite inspection.
I am concerned with having the termite company do the repairs anyway because they are not licensed contractors. They are not giving me any options for materials or type of work. I am completely at their mercy.
My realtor is pushing me to use the termite company as well.
Here is what I would like to do instead:
1) Take the carport down myself, or if I must, have a licensed contractor do it
2) Have a licensed contractor repair the other items
3) Have a non-interested third party do the final inspection
My questions are:
1) Can the mortgage company tell me who to use for repair?
2) Do I have to use the escrow for the repair? Can I pay for it myself?
3) Do I have to use the original termite company for the inspection?
4) If the termite company does the inspection, what is the consequence if they don't approve of the work?
Thanks for any help!!!! I can't seem to find any good information online.
Hi guanalava,
The mortgage company may refer a particular termite company to you but it would be your discretion whether or not you would take that company's help. You can take the help of a non-interested third party to inspect the property and a licensed contractor to repair the property.
As far as the escrow account is concerned, I think you will have to go for it. Your lender will want you go for that account. If the termite company does not approve the work, then you may have to go for another repair.
The mortgage company may refer a particular termite company to you but it would be your discretion whether or not you would take that company's help. You can take the help of a non-interested third party to inspect the property and a licensed contractor to repair the property.
As far as the escrow account is concerned, I think you will have to go for it. Your lender will want you go for that account. If the termite company does not approve the work, then you may have to go for another repair.