Appraisal requiring repairs done in order to close a deal
I have not heard of this requirement before but I have a situation on a shortsale where the appraiser required that in order for them to sign off on it, the 2 leaks in the bathroom must be done and that they will have to do an appraisal review in order to close. This is a short sale and the lender typically will do no repairs. The borrower on the other hand cannot get the loan docs unless the repairs are done. Problem is the borrower does not own the property yet so it does not make sense for them to proceed with the repairs. However, the borrower was willing to do the repairs but now the owner will not allow the borrower to send someone over to do the repairs until the property is officially closed. This is a catch 22 type situation.
Has anyone encounter this dilemma? Now the owner and his agent had sent the borrower a Notice to Perform letter or else they will cancel escrow. This is a sticky situation now because of the several variables that are involved in this transaction that prevents it from closing escrow. The borrower was even willing to sign a waiver when doing the repairs but the owner even refused that option. Would the borrower be able to pursue 'specific performance' from the owner in this situation?
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