Mortgage without a C.O.

We are looking at a house that is in pre-foreclosure that supposedly doesn't have a C.O. for some work done to it. Will we be able to get a mortgage for that house?

Re: Mortgage without a C.O.

There wasn't a C.O. for 2 things in our house and we went through everything with no problem. Not sure if it's different with a foreclosure, but we had no problems, unless someone from the town decides to come inspect your house and realizes it.

Re: Mortgage without a C.O.

We think we know why there is no C.O. but when we get in to see the house tomorrow we'll figure out exactly why...we aren't concerned with it except for the mortgage going through, but I know that the town is aware of it...my husband is a general contractor so he'll fix it and we'll rectify it immediately, but I'm worried about liking the house and then having trouble getting a mortgage because of it. I'm glad to hear that you were able to have your mortgage go through without it! Thank!

Re: Mortgage without a C.O.

There are no hard and fast rules. In my experience, it really depends on the lender you are using and on the item that is missing a CO.

Some banks are pretty lenient, and there appraisals will go through with blinders on; others will not close without each and every CO in place. Many banks used to let you close with money in escrow. For example, when I bought my house, the sellers didn't have the COs for the deck or the fireplace. But we closed, and sellers put $10K in escrow, and they got the COs after we moved in. But most banks will not let you do that any more. They want the COs in place before closing.

Also, an item that doesn't really affect the structure of the house is more likely to slide. For example, I just had a deal close last month where the sellers had no CO for a half bath they added upstairs, and didn't plan to get it. It wound up being ok (we closed without it). But had it been a major addition or extension to the footprint of the house, that would likely have been a sticking point.

If the seller is unable or unwilling to get COs (which I am guessing is the case -- you said it's a preforeclosure, so I am guessing short sale?), then just know that if your lender won't overlook it, the item may need to be removed or torn down, if possible (such as with a deck or a shed) OR you may have to go through the trouble and expense of getting the COs yourself.

Re: Mortgage without a C.O.

Our house had a shed that had no CO (it was to close to the house) The sellers had to take it down before we finalized the mortgage.

Re: Mortgage without a C.O.

Re: Mortgage without a C.O.

our bank held money in escrow until the seller got the CO for a garage to den conversion. it was done after closing.

Re: Mortgage without a C.O.

Re: Mortgage without a C.O.

No CO on the entire house? How old is it? It varies by town, but I know that many older homes were built before certificates were required. In Town of Hempstead, where I do most of my work, it is something like 1930 or 1928. In that case, the town usually has what we call a "letter in lieu" on file. (Basically, the letter says there is no C.O. for the house because it was built before the requirement came into play).

Of course, any changes to the house after that initial construction would require permits and COs.

Maybe it's not worth pursuing it, but just wanted to let you know that there are homes with no COs because of their age. You could always call the town or have your realtor look into it further if you loved the house!

Re: Mortgage without a C.O.

It's about 35 years old. It's been within the same family since it was built so I guess that is how it was never an issue before.

Re: Mortgage without a C.O.

Many years ago, we were interested in a home. So, I typed the address into mynassauproperty.com and an entirely different house came up. Turns out, they totally rebuilt the home and the owner (who was an expeditor) was holding off on filing the COs for as long as possible, so that the taxes wouldn't increase. Needless to say, we walked because the taxes would probably have at least doubled. Amazing what people will do.