roofs and mortgages?

Homegrown Tomatoes · February 09, 2009, 12:18:53 AM

Quick question for anyone who is familiar with mortgage companies...
We're going tomorrow for the inspection on the property we're hopefully buying. We have agreed that the property is "as is", and really, for the most part, it is in excellent condition. Our only concern is that the roof is really old... like maybe 20 years old. Now, there are no leaks and the shingles are still flat on the roof (as opposed to curled up or missing). Our realtor keeps worrying that we might have to either replace the roof before the mortgage company will finance it OR that we'll have to put money in escrow at closing for a new roof in order to close on time because the owners said it was old and needs replaced in their disclosure. Does anyone know how a mortgage company would decide whether or not to give the loan as it pertains to the house possibly needing a roof? Do they go solely by age, or is it based on any visible damage/leaks? Or the insurability?

glenn kangiser · February 09, 2009, 12:25:02 AM

I don't know but the escrow thing should work at the worst it seems. Hopefully someone will have an answer.

February 09, 2009, 11:04:42 AM

If the seller is selling as is then the seller has no reason to pay for the roof if required by the bank to get a mortgage. The bank may require you (buyer) to put money in escrow to get a new roof put on if they deem the roof needs replacing. Money put into escrow can only be used for that purpose and is usually paid out in phases (percent at start and remainder at completion). Money may get paid directly to roofer or through you depending on how it's setup.

Don't mention the old roof and let the bank tell you what they need.

Mike 870 · February 09, 2009, 11:36:14 AM

Don't let the appraiser inside either. If they don't see water intrusion how can they know. I doubt many appraisers can size up a roof just by looking at it.

MountainDon · February 09, 2009, 11:59:35 AM

She can't keep the appraiser out. For one, she doesn't own the house, yet.

February 09, 2009, 05:51:30 PM

I wish my realtor would keep her trap shut about it. She already told the banker that it's an "old" roof. There are seriously NO leaks (DH climbed all through the attic today, and we had rain all night, so it is still holding for the time being.) I don't think there would be any problem if she would just not say anything!

glenn kangiser · February 09, 2009, 06:42:33 PM

hmm A little case of diarrhea of the vocal cords...

river place · February 09, 2009, 08:19:37 PM

Sounds like you need to tell the realtor to shut up and think about a new line of work.

Homegrown Tomatoes · February 09, 2009, 08:28:28 PM

I told her just to not worry and to wait and see if the appraiser or the insurance agent says anything. If they don't, then she doesn't need to worry about it. However, she just keeps bringing it up, and apparently even mentioned it to the lender as he told me that she was worried about it. Now she's got the banker worried, so I hope he doesn't say something to the appraiser about it.

On a good note, though, that was pretty much the ONLY thing wrong with the house. The inspector crawled over every inch of it and had very little to complain about. He was all over the roof, in the attic, the barn, crawling around the fireplace, etc. The elderly woman who lives there was a little confused as to what he was doing, and she kind of fussed at him for running the dishwasher empty and opening the chimney flue and letting the water run in the tub, etc. It was hilarious. She kept following him around and turning stuff off behind him when he was leaving it going for a reason. The termite inspection came back great, too. No termites. So, getting closer to becoming reality. Now, if I could just get my realtor to keep her trap shut!

February 09, 2009, 09:59:00 PM

The realtor seriously needs to keep her trap shut. She obviously needs to learn to engage brain before putting mouth in gear.

As far as damage control is concerned, if the roof becomes an issue with the mortgage company or the insurance people, maybe the home inspector and/or his report could be useful. If that's not enough to satisfy them, it might pay to get a local roofer with a good reputation to inspect the roof and give you a report on its condition and probable longevity based on his local experience. If the report came back favorable, it might help. Likely cheaper than a new roof if one isn't needed in the foreseeable future.

G/L!

Homegrown Tomatoes · February 09, 2009, 11:07:11 PM

Here's my thought: of course we wanted to have the roof done anyway, but it'll be tight right at closing time to have to do it then. However, if we wait even one month, it won't be any problem. The inspector also works as a roofer on his down time. He does metal roofs as well, which is what we would want to go with. He was thorough and methodical, exactly the kind of person I'd want to work for me, so perhaps if we have him give us an estimate on what it would cost to do the roof, and then we sign some sort of a deal with him to do it a few months down the road (ie. show that we have it 'scheduled') , and use that as leverage to get the closing done on time? Did I mention we're closing on the 24th?! This is going to be here in no time! Of course, the kids wanted to know if we could stay there tonight!

Sassy · February 10, 2009, 01:04:30 AM

How exciting! Just about enough time to get everything in order

On the other hand, that realtor is really getting on my nerves

southernsis · February 11, 2009, 09:34:15 AM

Your real estate agent has a big mouth. The only people she has to disclose to is you her clients. She is not obligated to run around like Chicken Little screaming the roof is falling.

John_C · February 11, 2009, 10:08:24 AM

Just a thought.

When I've had issues with realtors I've called the licensing board. Explain the situation... My realtor is doing this. Only facts. Ask questions. Should my realtor be revealing things to the lender that weren't in the inspection? No accusations.

With luck someone from the licensing board will call the realtor. If they have been out of line they will get the message loud and clear. If not they will still want to tow the line, collect the commission check, and get you out of their life ASAP.

It's worked for me on two occasions. When I tried to buy property in NC I had problems with the seller changing the contracts after I had signed them, and the realtor refusing to send me copies. We went round & round for six weeks. They were claiming I would forfeit my earnest money if I didn't go forward with the closing. One call and the realtor was stumbling over themselves to "make it right". Cleared it up in about six hours. Had my earnest money back via wire transfer the next day.

Somewhat different circumstances but similar results with a house in GA that I ended up buying.

Homegrown Tomatoes · February 12, 2009, 04:05:01 PM

Cool. I got one of my best friend's brothers to write the insurance policy on the place... and I've known him since we were knee-high to a bowlegged frog, and we used to go fishing together when we were little. He drove out to the place this morning, looked at the roof, and called me and told me to tell the realtor to "can it" and the roof is insured just like the rest of the house is.

Now, as long as the appraiser doesn't have a problem with it, we're in for smooth sailing. I switched banks last night, and my realtor doesn't know this banker, so maybe she'll keep her trap shut. The other bank didn't want me on the loan at all because I don't earn a wage... they would only put it in DH's name, and he didn't like that, so we went back with our original plan with another lender that we already had worked with in the past. Still we are (theoretically at least) closing on the 24th. I couldn't ask for a better late birthday/Valentine's present.

roofs and mortgages?

John_C