What to do when you find structural damage while in escrow

[Patrick Fraire]

Im about halfway through escrow period structural damage was found during the inspection. My inspection contingency window closes in two days. What should my next steps be? FYI This is a tri plex in downtown Riverside, CA 517k purchase price via FHA 5% down +36k seller carry back. Balloon due in 5-7 years with $150/month payment. B class neighborhood Historic buildings all around. (This bld is not in historic registry to my knowledge) Built in 1929. No estimate on cost to repair damage. The floor on the second floor is not level due to the structural issue with the foundation. Please advise. I want to ask for a credit back on the carry back however this was done via promissory note. This is a house hack deal and the location is perfect. The day we went into escrow a rehabbed comp was listed on the market for 880k. I’m worried if I ask for the credit the seller will look for any reason to get out of escrow and put this back on the market. I got this off market. Let me know what you would do.

[Aaron K.]

You will probably be abandoning this property, unless the seller is willing to pay for the repairs. Is your lender aware that you are using owner financing to help purchase the property, because if not they need to know this. FHA won't let you buy something unless structural issues are handled or you are buying with FHA 203k. A lot of those things in downtown have major hidden issues and multiple Mickey Moused add- ons