FNMA Inspection Period / Repairs

3 Replies

Hey everyone,

Here's my current siutation. Received the FNMA Addendum on the 16th of April, standard 10 day inspection period. The regular purchase contract stated that all utilites would be on to allow for inspection.

Scheduled inspection for April 21. That weekend was told by my buyer's agent that utilities had not been turned on, it would be sometime the following week. Went through that entire week, and nothing. My agent followed up several times and got the run-around. Finally went up the chain with the broker, and come to find out there was a delay in turning water on because it couldn't pass pressure test and they were waiting on repairs.

Finally get the green light on April 30th....14 days after offer accpetanace. Had insepction this morning.

There are some plumbing leaks still but not terribly concerned, but one of the leaks had long-term dripped into furnace and rusted out the unit and soaked the electornics. Inspector believes unit will need replaced.

Anybody have similar issues with FNMA not providing property for inspection during 10 day window? My thought is they violated contract on their end first, are they going to allow me to come back to negotiate reparis/cost reduction on the bad HVAC?

Also, have any of you had any luck with getting FNMA to do major item repairs on an inspection report?

Do you have an attorney? Did you document everything via emails and certified letters? If so get everything to your FNMA contact ASAP. Chances are you will not be able to re-negotiate unless you can strongly document your issues with whomever your FNMA contact is. Time is of the essence. Been through it and 1st time I got screwed 2nd time I was prepared and won... I received a credit of $4700 for plumbing and electrical issues. IMHO bypass listing broker and go right to FNMA contact of couse cc'ing everyone on all correspondence.

If your acknowledgement date was April 16 and you scheduled inspection for April 30 your 10 day due diligence period is already over, which doesn't leave you with much leverage.

I understand the utilities was not on but that doesn't change the duration of the period.

Is the contract already executed? I mean you signed, sent back the contract and addendum, and FNMA has already sent back to you an executed contract?

If the contact has been executed I think you'd want to talk to them and get an amendment signed to extend the inspection period to cover yourself while you sort all these issues out.

It did happen to me with water and power turned off and they couldn't be turned on in time due to back payments to those accounts, so before the 10 day period was up I withdrew my offer and instructed the listing agent to let me know when the property is ready for inspection. Then I resubmitted a new offer. So if contract hasn't been executed you could withdraw, then resubmit a new lower offer taking the inspection results into account...or ask for an amendment to extend the inspection period and a closing credit.

Always an option for electric, is bring a generator. It's easy for me because I have a truck with a welder/8k generator. You can just wire it to the panel, check everything. Air pressure with a gauge for the water. Maybe you shouldn't have to, but this allows to do a thorough inspection, when most others can't.

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