Buyers Bank Demanding my HUD1

[Steve Wilcox]

I am in the process of trying to close on the sale of a property, and the bank has been a huge hassle. The home was under contract for $155 per sq-ft which is totally in line with all comps and lower than some provided buy the appraiser, but since the house was larger than most in the area they demanded we lower our price by over 20K (original contract price was 267). We agreed to simply change the contract price to the appraised amount because most of my cash is tied up in the project and I want to keep rolling rather than fight over a few dollars.
Now on the scheduled closing date the ban says they cant close until I give them my HUD1 statement as well as a list of all repairs and upgrades I made to the property. We have owned the property for over 6 months, so no 90 day issues.

Permits may not have been filled for the work and I do not want to get into issues.

We agreed to adjust our price to the appraised amount and it has been over 90 days, can the bank ask to see any of this? What is my best option, I just want to close this deal so I can move on, but also dont want to open a can of worms trying to rush to close.

[Will Barnard]

Bryan, with all due respect, we are not talking bout spec buidling vs. rehab flipping here so what you do in Austin is irrelevant and stating that one should ask for all lender requirements upfront before entering escrow is not possible, suggesting such a thing shows the lack of experience in this topic. Regardless of what is in the PA, it is quite standard for any lender to potentially ask for Huds, repair lists, and possibly receipts beyond appraisals. As a rehab flipper, you know this going in to the deal.

The OG poster asked what he should do as far as this particular lender's request for a Hud1 and referenced a concern over not having permits done. To answer that question, he should provide the Hud1 and a list of repairs completed, itemized in general format. For example, new windows, new paint, new flooring, etc. I seriously doubt the lender will ask for permits, the buyer's inspection would show any inefficiencies in the workmanship and the ledner/buyer would ultimately ask for the repairs on such items.

Taking this any further than that is what I would consider pointless and arguing over playing hard ball or not is a poor decision in my mind. Just provide what they need so you can get the puppy sold and move on. Now if they are trying to re-negotiate the contract price beyond the appraisal contingency and/or inspection contingencty, then I think the OG poster has additional issues and depending on the contract, I am not sure the buyer or the lender can adjust price below the appraisal, excluding requests for repair credits from the inspection.