Closing with possible soil issues?

Question

Hi, I was about to close and we discovered an oil tank we removed it and it has holes.

Now we are waiting to get the results from the New Jersey lab to see if there is any soil problem, I am having issues because my rate is running out and I need to close any day in order to keep my rate, and they are willing to put an escrow only $5,000.

Am I risking too much?

Jacob Malakoff · Answer

@Sami Gren Interesting. I'm in a somewhat similar boat to you. I'm under contract to buy the Duplex I currently rent in Linden, NJ. The oil tank was removed on 3/12 and the soil was contaminated. The soil still needs to be decontaminated and the seller will cover the cost of that. Hopefully this all gets done by 5/13 because I have my mortgage rate locked in at 3.375. It wouldn't be the end of the world if I couldn't get that rate but I hope to close before then!

Russell Brazil · Answer

Thats unlikely to happen anytime soon. Banks are increasing rates and fees because they are over capacity on refis, and Fannie Mae increased the guarantee fee they charge to lenders. Rates may drop again, but we are talking a month to months out as they buy MBS's.

Aaron K. · Answer

@Sami Gren rates will probably stay the same or get better as the Fed lowered their interest rate to essentially zero.

Matthew Paul · Answer

Five grand could be a drop in the bucket as far as an oil spill goes .

Sami Gren · Answer

Just so you know, rates are actually terrible this week

Aaron K. · Answer

@Sami Gren call a new lender and see if they can match or beat your current rate, they might as interest rates have dropped recently, don't give yourself an artificial deadline to "keep your rate" It takes as long as it takes to get the results and if they come back with contamination it can be very expensive to clean up.

Closing with possible soil issues?

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