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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Updated: Closing without C/Os
I've posted recently about some troubles we've been having with the home we are in the process of buying. We signed contracts in October, on/about close date 12/31, until the title search uncovered 2 missing C/Os . . . .
The sellers hired an expeditor to get it done, and we just found out that the applications were rejected. Apparently there was a problem with the paperwork and so now, despite not having the C/Os, our lawyer said he'll let us close with a significant amount of money in escrow when before he was uncomfortable with closing before these items were settled. He said now we've been put out for 2+months, and if we want to close, he understands.
What do we do? He doesn't see an issue with getting the C/Os once the applications are submitted properly, but I'm running all the "what ifs" through my head . . . I mean, it's not a small purchase! Just wondering if anyone has any experience or advice.
If we close, how worried should we be about the seller not following through with the C/Os even with money in escrow. Help.
Message edited 3/30/2012 1:36:52 PM.
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Posted 2/28/12 10:26 PM  |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Closing without C/Os
What are the co's for?
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| Posted 2/28/12 10:59 PM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Closing without C/Os
Enclosed porches . . . .sigh.
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| Posted 2/28/12 11:08 PM |
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Re: Closing without C/Os
It's pretty common to not have COs for that type of item (i.e., enclosed porch). I think it's fine to close with money in escrow, esp. if your lawyer is on board with it.
When I bought my house in 2008, the sellers needed to obtain COs for the deck and fireplace. We closed with money in escrow and the COs weren't actually obtained until several months after we closed. But if I recall, it wasn't that straightforward -- the sellers had to get a variance because I think the deck was built too close to the property line. So even with an expediter, it took awhile.
I know that many banks now will not allow the parties to close with money in escrow. They often require all COs to be in place, but of course it depends on the bank.
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| Posted 2/28/12 11:32 PM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Closing without C/Os
Thanks, Christine. The issue is not with our bank, they have no problem with us closing without these COs - it's more us not wanting to take on someone elses problems, even with money in escrow. I'm leaning toward letting them resolve the issues and then closing - we are in an ok situation now - a flexible rental and we are saving a few thousand dollars a month, so really no harm in waiting this out. We're just concerned interest rates will change direction . . . .ugh.
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| Posted 2/29/12 10:30 AM |
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8ternity
<3
Member since 11/08 10586 total posts
Name:
Formally NYPD-Wife
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Re: Closing without C/Os
If your bank is allowing you to close then I would go for it.
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| Posted 2/29/12 12:57 PM |
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Otherme
Square head cutie pants
Member since 3/06 6899 total posts
Name:
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Re: Closing without C/Os
Posted by LovesMike
Thanks, Christine. The issue is not with our bank, they have no problem with us closing without these COs - it's more us not wanting to take on someone elses problems, even with money in escrow. I'm leaning toward letting them resolve the issues and then closing - we are in an ok situation now - a flexible rental and we are saving a few thousand dollars a month, so really no harm in waiting this out. We're just concerned interest rates will change direction . . . .ugh.
do you think the sellers will follow through with it and actually get the C/O's?
i only ask because we were in a similar situation - the sellers had an enclosed porch that was made into living space - but they never got a C/O for it. We had a few thousand put into escrow and they had 6 months after the closing to get it done. Well, 6 months came and they had done nothing..
So even though we got that money from escrow, we ended up having to hire the expeditor and do the work ourselves anyway.
If your bank is ok with you waiting, and you are ok with waiting, then it might be better to let the sellers take care of it. At least the motiviation of selling the house will be hanging over their heads, whereas after the house is sold, they really have no motivation other than losing a bit of money..
good luck!
Message edited 2/29/2012 2:25:07 PM.
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| Posted 2/29/12 2:24 PM |
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thenewUzi
LIF Zygote
Member since 2/11 32 total posts
Name:
Kim
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Re: Closing without C/Os
We actually just purchased our first home 2 or so months ago.. and we waited for lingering CO'S for the exact reason you stated, we certainly did not want to jump into someone else's baggage if we didn't have too...
They were waiting for the deck, hutch cut out and a bump out in the kitchen and we were told it was rejected the first time, then they hired an expeditor... but again, in my opinion of course, the process is such a money making pain that could be quicker than expected (usually not, lol) or much later...
In our contract we had something written up like if they didn't receive the co's by this date, we were able to walk from the deal with full downpayment refunded and also our lawyer fees from that point paid for..
At that time, our current living situation was having us save money and no timeline so made it easier to hold off but I personally would not purchase something big without proper documentations.. you never know! I sooo wanted out, and frustrated, but happy we waited.
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| Posted 2/29/12 3:23 PM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Closing without C/Os
Thank you everyone, especially Otherme and thenewUzi! This is exactly what we are afraid of! I just emailed our lawyer to say that, for now, we are going to continue to wait. Our only concern is the interest rates, which we can watch. Hopefully this will give them incentive to get it done. Please send good house vibes our way - this has been quite an experience!!
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| Posted 2/29/12 4:37 PM |
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MrsS6510
2 girls?!?!?
Member since 9/10 3318 total posts
Name:
L
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Re: Closing without C/Os
We closed without C/O's for our backyard deck, but I will say that there was another house we were originally in contract for that didn't have C/O's for a sunroom and a converted garage. THOSE we wouldn't close without because they affect living space and if push came to shove and we couldn't get C/O's, it would affect the actual size of the house. The deck we didn't mind so much because it wasn't active living space as it was outside and wouldn't have been very significant if we had to take it down.
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| Posted 2/29/12 4:59 PM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Closing without C/Os
Posted by MrsS6510
We closed without C/O's for our backyard deck, but I will say that there was another house we were originally in contract for that didn't have C/O's for a sunroom and a converted garage. THOSE we wouldn't close without because they affect living space and if push came to shove and we couldn't get C/O's, it would affect the actual size of the house. The deck we didn't mind so much because it wasn't active living space as it was outside and wouldn't have been very significant if we had to take it down.
Exactly!! If we have to remove 2 enclosed porches it greatly decreases our amount of living space and thus the value of the house. Also, that's a lot of work!!
PS - hope you are well MrsS!! XO
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| Posted 3/1/12 11:06 AM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Updated: Closing without C/Os
Here's my update, with a vent:
Still no COs and still no closing date!! This is just a cautionary tale ladies - the rear porch mentioned in my above posts needs to be dismantled!! It is not compliant and a variance would take months!! We've agreed to having them make this an unenclosed porch by removing the windows, heat, and plumbing - but there goes our 4 season porch and first floor laundry!! I'm so peeved. We have been in contract SINCE OCTOBER!! We've been nothing but responsible, and all it has gotten us is an expired mortgage commitment and lots of wasted time and headaches.
I am so over this house!!! More so, I'm so over these sellers!!!!
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| Posted 3/30/12 1:39 PM |
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Jenhos
Maeve
Member since 6/05 3273 total posts
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Re: Updated: Closing without C/Os
What a nightmare! Are they giving u a break in price for 1. Loss of the all season room and 2. The headache. I would have walked by now. You are a trooper!
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| Posted 3/30/12 9:28 PM |
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8ternity
<3
Member since 11/08 10586 total posts
Name:
Formally NYPD-Wife
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Re: Updated: Closing without C/Os
Geez...can't you just walk away?? sounds like nightmare and I hope they are doing something with the price now. 
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| Posted 3/31/12 9:45 AM |
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LovesMike
LIF Adult
Member since 8/10 978 total posts
Name:
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Re: Updated: Closing without C/Os
Nightmare indeed!! Yes, we are getting a $12.5K credit from them at closing. The price of the house is a steal for the area, so we are keeping our mortgage and getting the cash up front. That will help with all the renovations.
Re: walking - if this house were ANYWHERE else, I'd be walking for sure. It is in the spot we want, in the town want (Floral Park) and there is nothing nearly as affordable in the area.
Hopefully it will all be over soon enough!!
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| Posted 4/1/12 1:07 PM |
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