Here an underwriter, there an underwriter! This time it was the title company's underwriter (instead of the lender's underwriter) who came up with additional requirements late in the game while my deal was nearing the close date. Because my seller's house had been remodeled, the seller had to provide receipts to prove he had paid for the materials he used. He also had to provide affidavits (and some had to be notorized) that third-party vendors had, indeed, been satisfied.
Of course, the whole process lessens the possibility of mechanic liens, which in Missouri can be filed up to six months after the expense is incurred. And those liens attach to the property, regardless of who owns that property in six months' time. The affidavits and receipts are good protection for the buyer, but getting them all together and to the title company is an extra step that more sellers may have to be prepared to do as the home-selling process evolves. Mechanic's liens and title policy protection against them are issues that are currently being hotly discussed in Missouri, and requirements are changing.
Buyers, sellers, and their agents should all expect additional documentation when a house has been remodeled or when alterations have been made at the last minute to satisfy FHA or lender requirements.
©2010 Liz Lockhart liz@lockhartlegacy.com (if you reblog, you must link back and leave copyright tag intact) 
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