On Thu, 13 Aug 2009 14:58:44 -0400, "Oscar" wrote:


"Josh" wrote in message
.. .
Oscar, nobody's disagreeing with you that FHA sales have an addendum
to the sales contract, that FHA criteria are strict and can't be
waived by the buyer, or that the seller may have to do unlimited
repairs if they want to sell to this FHA buyer.

What some are disagreeing with is the assertion that once you accept
the FHA offer (with addendum), the seller is all of a sudden obligated
to spend unlimited amounts on repairs to pass the inspection (perhaps
beyond the sale price), or face breach of contract charges. That
simply isn't true. Obviously, if the seller put "up to $1000" on the
addendum, and then refused to even spend that much, they could perhaps
be sued, but beyond that amount ($0 if not provided), the seller can
always refuse additional repairs, FHA or not, provided they're willing
to return the deposit (because at that point, the buyer isn't
breaching the contract by backing out) and find another buyer (or this
buyer finds alternate financing).

That's exactly what I said, somewhere. It doesn't matter whether its $100
or $5000, the seller must fulfill their obligation.

I did say initially, back when I sold a place FHA, they never had where you
could put caps. I then looked over the revised addendum, and said you _can_
put caps on the limits, I said this numerous times. You can't just shrug
your shoulders and walk away like some think, once you commit yourself.
Well, you can, but be ready to go to court.

Of course, there are those who don't read everything in the thread.

Even for those of us who have read everything still disagree with your
basic premis that "whether it's $100 or $5000, the seller must fulfill
their obligation", because you're not willing to add "or return the
buyer's deposit and release them from the sale".

Let's say it's not $5000 -- I agree to sell a house for $100,000 to an
FHA borrower. Inspector says the house needs a new foundation, septic
system, and roof. This will cost $120,000. Are you really claiming
that the seller is required to pay $120,000, then sell for $100,000,
or be sued for not "fulfilling their obligation"? Ridiculous; if even
close to true nobody would ever give an FHA borrower the time of day.
Accepting an FHA addendum simply means that if the FHA requirements
aren't met, the buyer is allowed to back out with no penalty (deposit
returned).

Josh