Finding Structural Problems During Escrow ? Small Rural Home Example

In rural home purchases, the transaction is often subject to a satisfactory home inspection being done. Any imperfections are usually corrected during escrow. Now and then, however, a home inspection uncovers severe structural problems. What happens then?

Structural Problems ? Small Rural Home

With a small rural home purchase, the discovery of structural problems can be more problematic. Typically, neither the seller nor buyer has sufficient funds to undertake major repairs. Still, solutions such as the following one can be found.

The house was a 3 bedroom, one bath, rambler built on a crawl space set on a one-acre lot in a rural setting. The sellers were a husband and wife both of who were disabled. I'm not talking about a "slipped on a banana peel" trumped up disability here. The husband had been electrocuted at work, spent 14 days unconscious and suffered a massive heart attack. The wife suffered from a progressive problem with arthritis. The buyer was a young widow with 3 children.

The home inspection turned up old termite and water damage. The termites had been killed and the drainage problem fixed, but the sill plates and floor joists were seriously damaged. The floors were somewhat soft and sagged in various areas. The young widow could not afford and did not want to deal with the problem. She asked to be released from the contract.

To complicate matters, the husband's former employer had declared bankruptcy and had not paid his medical bills. The husband was borrowing money to pay the bills, but the medical bills were still growing. The sellers discussed the situation. They understood the buyer's point of view, but did not know how to fix the problem. Their mortgage lender declined to make a second loan and the sellers didn't have any savings left.

A business friend suggested the sellers ask a young builder friend to evaluate the structural damage. The goal was to get a ballpark idea of the cost to repair before throwing in the towel. It turned out that the builder couldn't remedy the problem because the house needed to be raised to give room for new sill plates and floor joists. The builder suggested a house-moving firm make suggestions.

The business friend also gave the sellers the name of a lender who had been useful to people in uncomfortable circumstances. The sellers contacted the lender and were able to get the necessary loan. The house moving firm and builder worked out a reasonable deal and the loan was used to get the necessary work done. The deal closed, the sellers paid off the loan, paid down bills and the buyer was happy.

The moral of the story? No matter what happens, don't get angry, don't lose your cool and don't give up. If you can keep your head, behave like a reasonable adult, and keep communication lines open, your chances of holding your deal together are amazingly good.

Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.

---

Lock In Big Profits By Offering Rent To Own Deals

Why would anyone accept a lease option, rent to own... Read More

How to Own a Dream Home in Spain

Every year hundreds of thousands of foreign visitors travel to... Read More

Purchasing International Real Estate

Interested in investing somewhere other than your back yard?Management companies... Read More

How to Sell Your House For Full Price

Many people believe that a real estate broker is needed... Read More

How to Use Color Psychology to Prepare Your Home for a Top-Dollar Sale (Part 1)

You've decided to prepare your home for sale. Whether you... Read More

Why Invest In Property?

Why property, some people ask when looking for an investment.... Read More

Budgeting Your Log Home: Where Do You Start?

The Log home industry has matured these last many years,... Read More

Building A Home? Want To Ask A Builder The Right Questions - Not The Dumb Ones!

These are real builder questions that I got from readers... Read More

7 Different Ways Anyone Can Become a Real Estate Investor

Being a real estate investor is not really that hard,... Read More

Dealing With Difficult Tenants

When managing residential properties one bad tenant can often undo... Read More

Fixer Uppers: Dont Make This Mistake

Making money with "fixer-uppers" isn't about repairing drywall or planting... Read More

Condo Hotels Offer Luxury and Great Investment Potential

Not Your Typical Vacation HomeWhat could be more perfect that... Read More

How Real Estate Investors Use Mortgage Note To Purchase Properties

Many of you may not be aware of the various... Read More

The Real Estate Bubble-When Will it Burst?

More and more individuals are realizing that real estate is... Read More

Making it affordable: Nine tips for first time home buyers

It seems that everyone loves a good real estate story.... Read More

Industrial Income Property Financing: Part 3 of 3

Financial ConcernsOf the three types of income property, industrial property... Read More

Home Owners: Disclose the Facts!

One of the most common causes for disputes occurring after... Read More

Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit

One of the quickest ways to real estate profits is... Read More

Property Investing - Am I Buying for Profit or Prestige?

All of us have emotional preconceptions and assumptions. They are... Read More

What is Tax-Deferred Exchange?

Under Section 1031 of the Internal Revenue Code, owners of... Read More

How to Sell Your Own Home and Save Thousands of Dollars

Most people take the easy way out when selling their... Read More

Buying Outer Banks (OBX) Investment Property

So, you're thinking of purchasing a rental property... Read More

Property Investing Secrets 8

Property Investing: A Buyer's Secret Weapon When Purchasing Real EstateMy... Read More

Investing In Commercial Property

Why commercial property?Compared to residential property investments, commercial property offers... Read More

Home Owner Association Restrictions ? Read Before Buying

Many communities have associations for homeowners, property owners, condo owners,... Read More

Lake Havasu Real Estate

Lake Havasu real estate is a hot commodity. With surrounding... Read More

To Buy or Not to Buy

Purchasing a home is a major emotional and financial decision.... Read More

Internet Battleground for Future of Residential Real Estate

Real estate agents are gearing up to face the biggest... Read More

Real Estate Development Feasibility Study (Income) - $1.2 Billion Developer Tells You How To Do One

There are two sides to a feasibility study and in... Read More

Buy or Sell First?

When it comes to home buying, the ideal situation would... Read More

Rapid City Real Estate Agents

Take me Back to the Black HillsLocated in Western South... Read More

Real Estate Investing ? FSBOs vs. Agent Listings?

Many would-be real estate investing professionals face discouragement because of... Read More

Realities of Real Estate Investing

If you are anything like me, you are always looking... Read More