Seller switches to "as-is" midway through negotiations
Looking for advice. We signed a P&S agreement for a 4-bedroom, 2-bath with the contingency to conduct a home inspection. The inspection revealed that the heating/cooling system (heat pump) needed to be replaced because it was not working at all. The Disclosure signed by the Seller did not say anything about this and the Listing did not say anything about this. The house was built in 1971 with heat strips in the ceiling as a means of heating the house, with separate thermostats in each room. Several of these no longer work. This system was upgraded in 1992 with the central heating/cooling system that is now 25-years old and no longer works. We submitted a Repair/Replacement list to the Seller within the allowed time frame asking for a replacement of the heating unit and he said he has decided he wants to sell it as-is and will not be fixing anything. We have applied for conventional financing and are through the steps up to the appraisal. We are concerned we will not get approved if the home does not have an operable heating system for the entire home. Is a rehab loan our only avenue??? Any advice is welcome. Thank you.