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#2264587 - 01/11/22 06:04 PM Lender Required Repairs, no invoices or amounts
Vive Accommodare Offline
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When a file is conditioned for repairs (termite, etc.) and we have not received invoices for the repairs, are we able to disclose an estimate or can we wait for the invoice to disclose the amount of the repair?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2264588 - 01/11/22 06:13 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
rlcarey Offline
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Galveston, TX
Disclose where, on the CD? We probably need to know a little more specifics as to requirements, timing, etc.
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#2264589 - 01/11/22 06:16 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
Vive Accommodare Offline
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File is at closing disclosure, but the UW conditioned for these repairs as a "prior to fund" condition.
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#2264591 - 01/11/22 06:51 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
rlcarey Offline
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So how are they going to be paid - the borrower is paying them directly? If being paid through closing, how is that possible without an invoice. Otherwise, you would issue the final CD based on good faith and revise as necessary when you have the final numbers. Not sure how you can close with an underwriting condition without getting an invoice for the work that was required to be completed. Did you not get bids for previous disclosure purposes?
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#2264592 - 01/11/22 07:00 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
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Usually they negotiate between buyer and seller. If being paid by borrower, they'll generally outside of closing and then send in the invoices and the work authorization itemizations. We normally don't get bids as agents in our area are truly on the ball. In this case though, the agent is quiet as a church mouse!
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#2264593 - 01/11/22 07:04 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
rlcarey Offline
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I assume these repair determinations are made prior to the initial CD being issued. How do you come up with an estimated amount to disclose on the initial CD for the repairs?
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#2264628 - 01/12/22 12:10 AM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
Vive Accommodare Offline
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yes, they are done prior to the initial closing disclosure going out. That's our issue right now, we don't have invoices but are running out of time to disclose the requirements.
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#2264637 - 01/12/22 01:48 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
rlcarey Offline
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Galveston, TX
Are you establishing an escrow account for paying these costs post-closing?
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#2264641 - 01/12/22 02:30 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
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no, these are to be done prior to funding. So the underwriting isn't calling for any holdbacks.
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#2264646 - 01/12/22 03:07 PM Re: Lender Required Repairs, no invoices or amounts Vive Accommodare
rlcarey Offline
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Galveston, TX
Interesting. Not sure how your State works, but to make sure there were no intervening mechanic's liens filed, in my State you would want an all bills paid affidavit from the contractor that did the repairs. There would be no way not to know the costs.
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